The automotive industry, a promising sector for Africa

AAfter relocating much of their production to other destinations, major automakers are now beginning to turn massively to Africa, both for production and a growing consumer market. Result: the giants of the sector are reinvesting on the continent, multiplying the creation of production units.

On this occasion, Hol Alan Kyerematen, Minister of Commerce and Industry of Ghana said: “When I started talking about the development of an automotive industry in Ghana, everyone started laughing behind my back. Yet it is the industrial sector that offers extraordinary prospects for my country”.

The automotive sector in Ghana is largely made up of imported used vehicle retailers and a few distributors who deal in the retailing of new vehicles and import no less than 100,000 vehicles per year. About 90% of these vehicles are used.

Ghana, however, is seeking to change this dynamic by attracting investment from major original equipment manufacturers (OEMs). Some equipment has already signed assembly agreements with this country, including Volkswagen, Nissan, Toyota and Suzuki.

For his part, Mohamed Bachiri, director of Renault Morocco, returned to the need to work hand in hand with the government, “we are working separately with the Moroccan government to set up ever more innovative supplier systems and to bring local integration rates. In production volumes, we have exceeded those of Italy, unfortunately the Covid crisis has gone through this and had to slow down our objectives”, he underlined.

Renault has been present in Morocco for 90 years and began manufacturing vehicles at Somaca in 1966. It was in 2012 that the creation of the Renault factory made the difference and marked the birth of the Dacia saga.

Today, on vehicles with approximately 2,000 parts, the local integration rate is 64% and the number of suppliers has literally tripled in just a few years. In 2030, the local integration rate should jump to 80%. Turnover will also be doubled by 2030, just as massive decarbonization in manufacturing processes is expected.

Groupe Renault in Morocco today manufactures 11% of global car volumes in the world.

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