Its key pillars are regional automotive value chains, automotive financing, and policy and capacity building. Speaking during the signing ceremony, Zanamwe expressed Afreximbank’s commitment to support the development of the automotive sector in Africa. “This MoU underscores the commitment of Afreximbank and AAAM to strengthen Africa’s industrialisation goals through strategic partnerships,” he said.
“By aligning financial innovation, policy support, and value chain development within the automotive sector, we are fostering a new era of intra-African trade and manufacturing. Our commitment to this initiative demonstrates how Afreximbank’s resources and expertise can transform continental aspirations into tangible economic outcomes.” Zanamwe said the MoU was expected to catalyse industrialisation by spurring local automotive manufacturing, strengthening regional integration, improving trade flows, creating skilled jobs, and reducing reliance on the import of second-hand vehicles across Africa. AAAM president Biene said Afreximbank has been “a phenomenal partner in our quest to drive growth and industrialisation of the automotive industry on the continent”.
“We are pleased with the renewal of the MoU. Logistics, energy, skills development, and financing mechanisms must keep pace with our ambitions. Afreximbank’s leadership is critical in this regard, but so too is the commitment of our governments to invest in infrastructure that connects factories to markets,” she said.
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It also envisages collaboration with institutions, like the African Union, the AfCFTA Secretariat, and the African Organisation for Standardisation, to enhance trade facilitation, capacity building, harmonised standards, and mobilisation of blended financing to catalyse industrialisation and sustainable growth in Africa’s automotive sector. “We must unite with key stakeholders to enable affordable mobility in Africa. The implementation of affordable vehicle and asset financing will unlock the potential of the continent.
Despite challenges, the opportunities are immense. With coordinated action, Africa can manufacture at least between 3,5 and 5 million vehicles annually by 2035 – creating jobs for our youth, strengthening local supply chains, and ensuring that the benefits of industrialisation are shared across our continent,” Biene added.
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Source: NewsDay
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