AAAM, AfCFTA & Afreximbank launch industrial policy course

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… to accelerate Africa’s automotive industrialisation

By Ernest Bako WUBONTO

The African Association of Automotive Manufacturers (AAAM), in a strategic partnership with Afreximbank and the African Continental Free Trade Area (AfCFTA) Secretariat, has launched the inaugural ‘Industrial Policy Executive Short Course (ESC)’ to accelerate automobile industry growth.

The initiative, which was launched at the Toyota Wessels Institute for Manufacturing Studies (TWIMS) in KwaZulu-Natal, South Africa, is designed to empower senior government officials across the continent to unlock automotive production opportunities, affordable mobility solutions and catalyse industrial development.

The ESC, backed by leading original equipment manufacturers (OEMs) including Volkswagen Group Africa (VWGA), Isuzu Motors South Africa and Toyota South Africa Motors, is a first-of-its-kind programme that aligns with the AfCFTA’s vision for regional integration and economic transformation through industrialisation.

Senior Advisor, Regional Value Chains to the Secretary General-AfCFTA Secretariat, Themba Khumalo, emphasised that the ESC is an opportunity to build capacity for the AfCFTA Automotive Task Force to effectively guide implementation of the strategy and advise Ministers of Trade accordingly.

“As mandated by the AfCFTA Council of Ministers responsible for Trade, over the past three years the AfCFTA Secretariat has been working with Afreximbank and the African Association of Automotive Manufacturers to pursue a strategic action plan that leverages the AfCFTA to develop an automotive value chain in Africa in a manner that enables industrialisation,” he said.

Also speaking during the opening session, Dr. Gainmore Zanamwe, Director-Trade Facilitation and Investment Promotion, Afreximbank, emphasised the ESC’s importance.

“Afreximbank envisions Africa’s future with a thriving automotive industry driving economic growth and industrialisation. Every loan, policy and partnership we foster supports this vision.

“The Bank is investing in building local capacity and employment through this sector. We believe that the ESC will equip African government officials with knowledge to harness opportunities from the continental automotive value chain. It will also help accelerate finalisation of outstanding rules of origin negotiations about the automotive industry,” he stressed.

Bridging Policy and Practice

According to Nobuhle Renqe, Chairperson of AAAM’s Skills Development Working Group and Corporate Planning Executive at Isuzu Motors SA, the programme aims to address key requirements for the automotive industry, how it can be developed further and to close knowledge gaps around the sector’s economic potential.

He noted that the long-term vision is to host the ESC annually, rotating delivery across Africa’s five regions in partnership with local institutions through TWIMS.

“Starting with this South African pilot cohort, we aim to foster a pan-African platform for knowledge exchange, skills development and self-sufficiency,” she added.

A Pan-African Learning Platform

TWIMS, renowned for its dedication to manufacturing education and research, will run the ESC programme.

The pilot cohort includes 26 high-level participants from 19 African countries, representing senior government officials from North, East, West, Central and Southern Africa.

Over the next nine weeks, the programme will explore technology trends, localisation strategies, regional value chains, industrial policy and include site visits to manufacturing hubs in Durban and Gqeberha, South Africa.

Participants will benefit from site visits to Toyota South Africa Motors, Volkswagen Group Africa and Isuzu Motors South Africa, gaining practical exposure to world-class automotive operations.

Industry and Government Leaders Lend Support

Vice President of AAAM and President & CEO of Toyota South Africa Motors, Andrew Kirby, taking his turn praised the ESC as a critical step toward fostering sustainable growth and collaboration across Africa’s automotive ecosystem.

“Through this course, we aim to strengthen the ability of public sector leaders to shape policies and frameworks that attract investment, stimulate growth and create sustainable jobs. At its core, this course is a platform to demonstrate that Africa can benchmark with Africa because the expertise exists right here,” he said.

A Shared Vision for Africa’s Automotive Future

Victoria Backhaus-Jerling, CEO-AAAM, expressed gratitude to the programme’s partners: “We are deeply thankful to Afreximbank for their unwavering commitment to developing Africa’s automotive value chain and to the AfCFTA Secretariat for championing intra-African trade. We are optimistic that with continued collaboration the automotive rules of origin will be finalised by October, as guided by our Heads of State.”

She concluded by acknowledging the critical role of OEMs. “We sincerely thank Volkswagen, Isuzu and Toyota for their steadfast support of our shared vision to industrialise and grow the automotive sector across Africa.”

In September, the AAAM in partnership with Afreximbank, the African Union and  AfCFTA Secretariat will host the Africa Automotive Show (AAS) at the Intra-African Trade Fair 2025 (IATF2025) in Algiers, Algeria.

This landmark event will showcase the continent’s growing automotive industry while creating a platform for discussions on policy dialogue aimed at enhancing local production capacity and building a more integrated automotive ecosystem.

This show will feature over 2,000 exhibitors from across Africa and beyond, including manufacturers, suppliers and technology innovators.

ESC Course Structure

The ESC course is structured in three phases: Seminar Week (in-person), Classroom sessions and an on-site plant tour at Toyota SA.

Online Phase (two months) – Virtual lectures and a strategic assignment identifying country-specific value chain opportunities.

Best Practice Week (in-person) – Held in Gqeberha with best-practice visits to VW and Isuzu manufacturing facilities.