The African Export-Import Bank (Afreximbank) is pushing for the development of a continent-wide automotive supply chain that allows African countries to specialise in different stages of vehicle production and retain more value from the sector.
The initiative forms part of efforts to leverage the African Continental Free Trade Area (AfCFTA) to build an integrated automotive industry, with Afreximbank committing a US$1 billion Automotive Fund to support local content and manufacturing capacity.
Speaking at the inaugural Africa Automotive Investment Forum 2026 in Alamein, Egypt, Afreximbank Executive Vice President for Intra-African Trade and Export Development, Mrs Kanayo Awani, said the bank was combining financing and policy support to help African countries participate more effectively in automotive value chains.
Under the proposed model, countries would focus on areas where they have competitive advantages and supply components and materials to manufacturers elsewhere on the continent.
For instance, Côte d’Ivoire could supply tyres, Botswana leather and Benin textiles, while South Africa and Morocco could provide automotive components.
Afreximbank said such specialisation could create an integrated supply chain capable of supporting vehicle manufacturing across multiple African markets.
The bank has also been supporting efforts to harmonise automotive standards, with 43 standards already harmonised to facilitate the use of components produced in one African country in vehicle production in another.
The US$1 billion Automotive Fund will support local content development, while the bank’s broader financing package includes project preparation, guarantees, debt and equity financing.
Afreximbank also identified Africa’s critical mineral resources as an opportunity to develop domestic value chains for batteries and electric mobility.
It said the priority now was to move from policy development to implementation by developing bankable projects, strengthening local supplier networks and converting available financing into productive manufacturing capacity.
According to the bank, the AfCFTA provides the market scale required to support an integrated automotive industry and enable African countries to retain a greater share of the value generated from their natural resources and manufacturing activities.
