By Ayomide Otitoju
The African Export-Import Bank (Afreximbank) has renewed its memorandum of understanding (MoU) with the African Association of Automotive Manufacturers (AAAM), reinforcing joint efforts to expand intra-African trade and investment in the continent’s automotive industry.
The MoU was signed on the sidelines of the Intra-African Trade Fair 2025 (IATF2025) in Algiers by Afreximbank’s Director of Trade Facilitation and Investment Promotion, Dr. Gainmore Zanamwe, and AAAM President, Ms. Martina Biene. The agreement focuses on three key areas: regional automotive value chains, auto-specific financing, and policy and capacity building.
Dr. Zanamwe said the renewed partnership reflects Afreximbank’s commitment to driving industrialisation in Africa. “By aligning financial innovation, policy support, and value chain development within the automotive sector, we are fostering a new era of intra-African trade and manufacturing,” he noted.
The collaboration is expected to accelerate local automotive manufacturing, improve trade flows, create skilled employment opportunities, and reduce Africa’s dependence on imported second-hand vehicles.
Ms. Biene welcomed the renewed framework, describing Afreximbank as “a phenomenal partner” in advancing Africa’s automotive growth. She stressed the need for logistics, energy, skills development, and financing to match the sector’s ambitions, while calling on governments to invest in infrastructure that connects factories to markets.
The revitalised MoU aligns with AAAM’s strategy to expand regional value chains and strengthen Africa’s automotive policy environment. It also envisages deeper cooperation with the African Union, the African Continental Free Trade Area (AfCFTA) Secretariat, and the African Organisation for Standardisation (ARSO) to harmonise standards, mobilise blended financing, and boost capacity building.
Highlighting the sector’s potential, Ms. Biene projected that Africa could manufacture between 3.5 and 5 million vehicles annually by 2035 with the right policy and investment support. “Affordable vehicle and asset financing will unlock the continent’s potential, creating jobs for our youth and ensuring the benefits of industrialisation are widely shared,” she said.
The Africa Automotive Show, hosted alongside IATF2025 in collaboration with AAAM, brought together manufacturers, subcontractors, and equipment suppliers to showcase Africa’s automotive potential and strengthen supply chains.
IATF2025, held from September 4–10, recorded more than 112,000 visitors from 132 countries, with 2,148 exhibitors and trade and investment deals worth US$48.3 billion concluded during the seven-day event.
