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Automotive & Spares

Automotive & Spares
SECTOR

Africa's rapid urbanization fuels a surge in vehicle ownership. Invest in the parts that keep Africa moving! From assembling new cars to supplying essential spares, contribute to Africa's future of mobility.

Africa's rapid urbanization fuels a surge in vehicle ownership. Invest in the parts that keep Africa moving! From assembling new cars to supplying essential spares, contribute to Africa's future of mobility.

$660.21 Bn

Market Size

5.70%

CAGR

$877.12 Bn

Forecast

Untapped Potential: Investment Opportunity in Automotive & Spares Business In Africa

Africa's economic growth and rising middle class are driving a surge in demand for vehicles, creating a dynamic and lucrative market for the automotive & spares sector. With a projected vehicle production of 2 million units by 2023 (OICA) and a growing urbanization rate of 4.2% (World Bank), Africa presents a uniquely lucrative opportunity for foreign investors across the automotive value chain.

 

Despite this promising outlook, the continent faces a significant challenge: a reliance on used car imports, estimated at 70-80% of the total vehicle market (Mordor Intelligence). This creates a huge gap in the market for high-quality, affordable new vehicles and a corresponding demand for a robust aftermarket for spare parts. Investors can capitalize on this opportunity by establishing local assembly plants for new vehicles, catering to the growing demand for brand new cars. Or, investing in the production and distribution of high-quality spare parts, catering to both new and used vehicles. There's also a big scope for developing innovative solutions for financing and after-sales services, making car ownership more accessible to the growing middle class.

Automotive & Spares
Investment Zones

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