By Advent Shoko
For decades, Africa’s roads have been dominated by imported second-hand cars, a reality that has kept the continent trapped in low-value markets while stifling industrialisation. But a renewed partnership between the African Export – Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) is now setting out to break this cycle.
Signed on the sidelines of the Intra-African Trade Fair 2025 (IATF2025) in Algiers, the new framework aims to catalyse local automotive manufacturing by strengthening regional value chains, unlocking financing, and shaping policy reforms that favour domestic production.
Dr. Gainmore Zanamwe, Afreximbank’s Director of Trade Facilitation and Investment Promotion, said the collaboration was designed to “spur local automotive manufacturing, strengthen regional integration, improve trade flows, create skilled jobs and reduce the reliance on imported second-hand vehicles across Africa.”
The reliance on used vehicles has long posed economic and environmental challenges, undercutting local industries, straining foreign currency reserves, and contributing to emissions from outdated technology. AAAM President Martina Biene noted that Africa has the capacity to flip this trend by building strong supply chains and investing in infrastructure to connect factories to markets.
With projections that Africa could manufacture 3,5 to 5 million vehicles annually by 2035, the renewed partnership signals a decisive shift toward affordable new mobility solutions, designed and built on the continent. It also ties into broader integration efforts under the African Continental Free Trade Area (AfCFTA), which seeks to harmonise standards, reduce tariffs, and accelerate intra-African trade.
At stake is not just the growth of an industry, but the redefinition of mobility in Africa, transforming the car market from one dominated by imports to one powered by African production.
This renewed drive is in sync with Zimbabwe’s policy on second-hand vehicles. The southern African country has imposed import duties of up to 100 percent of the purchase price on used cars in a bid to deter imports and channel demand towards locally assembled or new vehicles. Authorities argue that such measures are essential to protect infant industries and preserve scarce foreign currency. However, critics note that the main obstacle remains the pricing of locally available vehicles, which are often beyond the reach of ordinary citizens, leaving many still dependent on cheaper second-hand imports despite the heavy levies.
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