AAAM President: Africa Faces a Historic Opportunity to Build a Globally Competitive Automotive Industry
Moving from Planning and Policies to Actual Implementation
Tarek Mosaad, President of the African Association of Automotive Manufacturers (AAAM), emphasized that the continent has an exceptional opportunity to establish an integrated and globally competitive automotive sector. He called on governments and the private sector to move beyond the regulatory framework stage and immediately begin on-the-ground implementation. This came during his address at the "African Automotive Investment Forum 2026," where he stressed that agreeing on a 40% rule of origin under the African Continental Free Trade Area (AfCFTA) represents a vital pillar for encouraging investment, setting up factories, and supporting local suppliers.
Three Priorities for Building an Integrated African Manufacturing Ecosystem
Mosaad outlined three primary pillars for developing and scaling the sector across the continent:
Increasing Local Content and Regional Value Chains: Urging cross-border joint projects that enable SMEs to join global supply chains (Tier-1 and Tier-2), while stressing that no single country can compete in isolation.
Facilitating Cross-Border Trade: Demanding the harmonization of technical standards and the streamlining of customs procedures, pointing to the proposed cooperation between Egypt and the Southern African Customs Union (SACU) as a positive model.
Preparing for Modern Mobility Technologies: Calling for expansion into electric vehicles, battery manufacturing, charging infrastructure, and local mineral beneficiation to boost added value.
Strategic Partnerships and a Comprehensive Industrial Vision
Through its partnership with the AfCFTA Secretariat and support from Afreximbank, the Association aims to harmonize technical homologation standards and facilitate financing. In a related context, Hyundai Motor—led by Mosaad in the Middle East and Africa—is helping link global expertise with local ambitions by expanding assembly projects (such as its venture in Algeria) and supporting technical vocational training for youth. He concluded by noting that investors are looking for a single, integrated African market defined by stability and regulatory transparency.