Tarik Masoud, head of the African Association of Automotive Manufacturers (AAAM), has urged governments, policymakers, and the private sector to expedite the transition from policy-making to actual industrial and investment projects. He emphasized that Africa has a historic chance to build a competitive and integrated car industry. Masoud made these remarks at the high-level strategic dialogue during the 2026 African Automotive Investment Forum in El Alamein.
Masoud highlighted the importance of implementing policies and regulations to support the growth of the automotive sector. He noted that the agreement on a 40% local content rule for cars is a crucial step towards enhancing industrial integration among African countries. However, he stressed that this framework must be translated into tangible investments and production projects, including the establishment of factories and development of local supplier bases.
The AAAM chief executive outlined three key areas to develop a comprehensive and scalable automotive industry in Africa. These include increasing local content and building regional value chains. He emphasized that developing a globally competitive car industry requires integration among African markets, as well as the implementation of cross-border joint projects and specialized programs to develop local suppliers.
Masoud also emphasized the need to facilitate the movement of car products and components across borders. He cited the ongoing challenges related to customs procedures and differing technical requirements between countries. To address these issues, he called for the harmonization of technical regulations, simplification of customs procedures, and improvement of logistics infrastructure.
The proposed cooperation between Egypt and the Southern African Customs Union (SACU) can serve as a model for connecting industrial and commercial centers across the continent. Masoud also highlighted the importance of preparing for future mobility technologies, including electric vehicles, battery manufacturing, and charging infrastructure development.
The African Automotive Investment Forum also shed light on the partnership between AAAM and the African Continental Free Trade Area (AfCFTA) Secretariat, which began in 2021. This partnership aims to enhance cooperation in areas such as technical support, supplier development, and harmonization of technical standards.
Masoud concluded by emphasizing that investors view Africa as a single market, rather than 54 separate markets. He stressed that providing stability and legislative transparency, along with the expansion of suppliers and continued localization of operations, can support Africa's transformation into a significant hub for the car industry and its supply chains globally.
Key points
- Tarik Masoud calls for swift implementation of policies to develop Africa's automotive sector
- Africa has a historic chance to build a competitive and integrated car industry
- AAAM and AfCFTA partner to support investment in Africa's automotive sector
