Africa has traditionally been viewed as a consumer of used vehicles from Asia, Europe, and America to fulfil its mobility needs. However, this perspective is shifting. Across the continent, both governments and manufacturers are driving a quiet revolution: local auto assembly.
In countries such as Nigeria, Ghana, Kenya, Rwanda, and South Africa, both local and international brands are increasingly opting to assemble vehicles domestically. This practice creates jobs, reduces dependence on imports, and fosters a sense of national pride.
Take Nigeria’s Innoson Vehicle Manufacturing (IVM). Based in Nnewi, the company produces buses, pickups, and sedans suited for Nigerian conditions. It’s not just assembling knock-down kits—it’s sourcing materials locally, training workers, and helping revive the country’s once-dormant automotive industry.
In Ghana, Kantanka Automobiles combines innovation and cultural pride, producing SUVs and electric cars that are proudly “Made in Ghana.” While its output is still relatively small, the company represents a growing ambition for self-sufficiency and industrial capacity.
Then there’s Volkswagen Rwanda, launched in 2018 as part of a broader initiative to make Rwanda a mobility hub in East Africa. The plant assembles several VW models for the local market and surrounding regions, offering affordable financing and ride-hailing services bundled with the vehicle itself—a uniquely local twist on car ownership.
So why does this matter? Local assembly offers several key benefits:
- Job Creation: It stimulates employment across the supply chain, benefiting factory workers, logistics teams, marketers, and auto mechanics.
- Cost Stabilisation: It helps stabilise costs by reducing reliance on fluctuating import prices, tariffs, and foreign exchange rates.
- Technology Transfer: It promotes technology transfer, as global automakers supply expertise, training, and tools that enhance local capabilities.
The African Association of Automotive Manufacturers (AAAM) predicts that the annual demand for vehicles in the continent will increase from 1.1 million in 2020 to 5 million by 2035. If local production does not keep pace with this demand, a significant portion of the economic value will be lost through imports.
But this movement is not without hurdles. Inconsistent policies, limited access to industrial-grade steel, unreliable power supply, and weak local component networks hinder sustainable growth. Assembly plants still depend heavily on semi-knockdown kits (SKDs), which are partially assembled components, such as those used in automobiles or furniture, shipped from abroad for final assembly.
Several countries are beginning to align their automotive policies with local production. Ethiopia, Ghana, and Egypt have introduced new policies that promote local manufacturing and restrict the importation of used vehicles. These policies typically include tax incentives for local assemblers and manufacturers, as well as rules limiting or prohibiting the import of used cars. For instance, Ghana’s policy aims to establish a fully integrated and competitive automotive hub, while Ethiopia seeks to expand its assembly operations into a larger manufacturing network. Additionally, Nigeria’s automotive development policy is evolving to focus on standardising parts and encouraging local suppliers.
Africa may not build the next Tesla (yet), but it can create a thriving, self-sustaining auto sector. One that designs for its people, builds for its roads, and grows with its economy. The age of simply importing is fading. Africa is now assembling its future—one chassis at a time.
