Car manufacturers excited by possible trade and investment deals with Nigeria
10 Oct 2019 - by
The National Association of Automotive Component and Allied Manufacturers (NAACAM) says it is excited by the possibility of future trade and investment between South Africa and Nigeria after a recent state visit from Nigerian President, Muhammadu Buhari. Trade and investment initiatives were discussed between the two nations and, according to Renai Moothilal, Executive Director of NAACAM, the automotive sector fits the bill perfectly for Africa’s most populous country.
“Trade and industrialisation with the intent of intermediate and finished goods trade is therefore key. The auto sector fits the bill for both. Nigeria being Africa’s most populous nation, together with a strong regional market, should be positioned as an assembly hub,” said Moothilal.
Nigeria accounts for 64% of SA’s total trade within the West African region, and Moothilal believes policies should be in place that support an industrialisation automotive pact with major regional producers.
“African government-led industrial policies are crucial and should work toward ensuring system coherence with other major regional producers, such as SA. This would support an industrialisation automotive pact, as seen in other large regional groups such as ASEAN (Association of Southeast Asian Nations),” he said.
By assisting associate country governments, NAACAM will explore opportunities to develop work programmes that will ensure successful investment and industrial projects.
“There are immediate opportunities to attract key aftermarket component industrialisation projects. NAACAM is assisting partner country governments develop work programmes to unlock these,” said Moothilal.
“We then help them understand the value chains behind such components to determine what needs to be in place to ensure a successful investment project, and also guide targeted support to potential component manufacturing entrants,” he concluded.