African auto sector names 2026 year of ‘Progressive development through collaboration’

By Ernest Bako WUBONTO

The African Association of Automotive Manufacturers (AAAM) has declared 2026 the year of ‘Progressive Development through Collaboration’, setting out a strategy aimed at turning policy momentum into real industrial growth across the continent.

The plan builds on cooperation achieved in 2025 and focuses on trade integration, manufacturing expansion, policy certainty and technological transition. According to AAAM, the goal is to move from discussion to delivery in Africa’s automotive sector.

Chief Executive Officer of AAAM, Victoria Backhaus-Jerling, said 2026 would be the year when “momentum turns into measurable outcomes”, calling on governments, investors and industry players to work more closely.

At the centre of the strategy is the African Continental Free Trade Area (AfCFTA), especially the long-awaited Automotive Rules of Origin. African leaders are expected to adopt a 40 percent African content threshold for automotive products in February, defining what qualifies as “African-made” for tariff benefits.

These rules are meant to encourage local parts production, attract assembly plants and reduce dependence on used vehicle imports. Negotiations have been slow due to differences between countries with established industries, such as South Africa, and those still developing theirs. AAAM plans to work with the AfCFTA Secretariat, Afreximbank and national governments to guide members through implementation once the rules are adopted.

Alongside trade, AAAM is pushing for stronger automotive policies in key markets. It will support policy roll-out and reform in Egypt, Ghana, Côte d’Ivoire, Kenya, Nigeria, Ethiopia, Senegal, Tanzania and Algeria, while expanding engagement to new markets such as Angola. The association argues that clear and stable policy remains the foundation for attracting long-term investment.

On manufacturing, AAAM has set a target of securing at least five new component manufacturing investments in 2026. This will involve linking investors with local opportunities, conducting feasibility studies and building partnerships to deepen local supply chains.

Sustainability and technology are also central to the agenda. AAAM plans to promote re-manufacturing, alternative powertrains and New Energy Vehicles, while pushing for broader policy support and regional alignment. It also sees micromobility — such as electric two- and three-wheelers — as a key solution for affordable and sustainable transport in African cities.

Data and skills development remain supporting pillars. AAAM will continue to provide market intelligence to guide policy and investment decisions, while expanding training through executive short courses for government and industry leaders.

The association will also link Africa’s mineral resources more directly to automotive manufacturing through its partnership with the 2026 Mining Indaba, promoting mineral beneficiation and regional value chains.

Finally, AAAM says affordable mobility remains a social priority. Working with vehicle financing institutions, it aims to make vehicles more accessible to ordinary Africans.

The 2026 strategy reflects a shift in Africa’s automotive ambition — from setting policies to building factories, supply chains and skills. Whether the goals are met will depend on how quickly governments finalise trade rules, how consistent policies remain, and how confidently investors respond to the promise of a single African automotive market.

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