By Jibril Abdul Mumuni
Accra, June 25, GNA – The African Continental Free Trade Area (AfCFTA) has been described as a transformative platform capable of unlocking the full potential of Africa’s automotive industry.
The remarks were made by Mr Jeffrey Oppong-Peprah, Chief Executive Officer of Volkswagen (VW) Ghana, and Mr Themba Khumalo, Representative of the AfCFTA Secretariat, during an executive training programme on automotive industrialisation in Accra.
Mr Khumalo said the agreement created a single market of about 1.4 billion people with a combined Gross Domestic Product exceeding three trillion dollars, providing the scale needed to drive industrialisation.
“The AfCFTA offers the most important structural opportunity in a generation to transform Africa’s automotive sector,” he stated.
Mr Khumalo noted that the continent’s reliance on imported vehicles was not a permanent condition, but a policy choice.
He explained that the agreement could help overcome market fragmentation and enable manufacturers to achieve economies of scale through regional integration.
Mr Khumalo cautioned that the success of the AfCFTA in the automotive sector would depend on policymakers’ understanding of complex issues such as tariffs, rules of origin and supply chain logistics.
“AfCFTA cannot deliver on its automotive promise if policymakers do not understand the sector deeply,” he said.
Mr Oppong-Peprah stressed the importance of policy-driven industrialisation, noting that successful automotive economies were built on strong government commitment, skills development and strategic partnerships.
He said the automotive industry served as a key driver of economic development, linking sectors such as steel, plastics, textiles, logistics, finance and technology.
Mr Oppong-Peprah emphasised that developing regional value chains was critical, as no single country could efficiently manage all aspects of vehicle production.
Instead, he called for cooperation among countries to specialise in different segments of the value chain.
Mr Oppong-Peprah pointed to Ghana’s Automotive Development Policy as a step in the right direction, noting that it had attracted international manufacturers and positioned the country as a potential regional hub.
He also highlighted the sector’s potential to create jobs, enhance technical skills and promote innovation across the continent.
However, Mr Oppong-Peprah acknowledged challenges such as heavy reliance on imports, limited local component manufacturing, infrastructure deficits and affordability constraints.
He called for coordinated action among governments, industry players and development partners to ensure that the benefits of the AfCFTA were fully realised.
“With the right policies and collaboration, Africa can build a competitive automotive industry that serves both regional and global markets,” he said.
GNA
Edited by Kenneth Sackey