The Volkswagen Group Africa (VWGA) and African Association of Automobile Manufacturers (AAAM) have jointly praised the African Continental Free Trade Area’s (AfCFTA) ‘Rules of Origin’ (RoO) package, saying it will drive growth within the continent’s automotive industry.
They believe it could enable the continent to manufacture between 3.5 million and five million vehicles annually.
AfCFTA’s Auto Pact (AAP) aims to introduce a harmonised continental standard, ensuring that national policies are aligned to support regional production, intra-African trade and enhanced competitiveness within the auto-manufacturing sector.
Currently, the AfCFTA secretariat is finalising a RoO policy for the automotive sector. The policy is expected to mandate a minimum of 40 percent local content in vehicles manufactured on the continent – a key objective advocated by the AAAM.
Once fully implemented, the RoO policy is projected to enhance human capital development and local capacity building, improve access to affordable skilled labour and establish a strong intra-African logistics value chain.
The vast market potential under AfCFTA presents a significant opportunity for the automotive industry to thrive continent-wide. Chief Executive Officer-AAAM, Victoria Backhaus-Jerling, says successful implementation of the AfCFTA RoO will accelerate production capacity – given the policy’s emphasis on regional collaboration and shared value chains.
She also explained that the RoO will facilitate harmonisation of standards across new and used vehicles, spare-parts and fuel-quality specifications. With an October 2025 deadline set for the RoO policy, 46 African Union (AU) member-states have submitted initial tariff offers to the AfCFTA secretariat.
Mrs. Jerling emphasised that the AAP will support continental transition from traditional internal combustion engine (ICE) vehicles to electric vehicles (EVs) and other alternative powertrain technologies.
Consequently, she urged policymakers to include provisions for the growing micromobility segment – encompassing electric scooters, bicycles and other light electric vehicles – which is gaining popularity due to urbanisation, rising vehicle ownership costs and demand for more sustainable transport options.
The African Continental Free Trade Area (AfCFTA) ‘Rules of Origin’ (RoO) package outlines criteria and conditions for goods to be considered as originating from an AfCFTA state party and therefore eligible for preferential tariff treatment within the free trade area.
These rules are crucial for ensuring that goods genuinely originate within the AfCFTA region and prevent fraudulent practices that could undermine the agreement’s benefits.
