On February 16, 2022, a memorandum of association was signed between the 12 automobile companies which were within the jurisdiction of the EU-Africa Business Forum. Their goal was to boost the African automotive industry, including Mauritius.
Some of the signatories to the MOU are the following: Dr. Markus Thill, Member of the Management Board AV, European Automobile Manufacturers’ Association (ACEA), Dave Coffey, CEO, German-African Business Association (Afrika-Verein der Deutschen Wirtschaft); Eric-Mark Huitema, Director General, Nigeria Automotive Manufacturers Association (NAMA), Andreas Rade, Managing Director, Sigrid de Vries, Secretary-General, Dr. Markus Thill; Member of the Management Board, German Association of the Automotive Industry (VDA), African Association of Automotive Manufacturers, AAAM; Automotive Assemblers Association Ghana (AAAG), Jeffrey Peprah, President and European Business Council for Africa (EBCAM), Tokunbo Aromolaran, Chairman, and.
The automotive sector, which is critical to Africa's industrialization, is frequently linked with multiple challenges which include direct competitors, lack of consistency in African nations, local distributors, and reasonable pricing, along with trade policies that are unable to meet the local or foreign investments.
Since the automotive sector is critical to Africa's industrialization, it is frequently connected with a number of issues which includes the ongoing market fragmentation, a lack of regulatory harmonization between African countries and the two continents, industrial and trade policies that are unfavorable to local, local suppliers, a lack of consumer access to credit, and affordability.
African Continental Free Trade (AFCFTA) focuses on pan-African trade and funding opportunities. Fuel for European-African policy management is being offered. A Memorandum of Understanding (MOU) is being placed between African and European Automotive Association Manufacturers. (AAAM). VDA and Afrika-Verein have been upgraded for collaboration between 12 Associations. These 12 Associations had to sign an MOU.
The purpose of MOU is to invite external discussion in order to protect the development of a collaborative plan which will expand Africa’s sector in the global and European market which and result in quality and consistent jobs.
The seven-seven keys were set in regard to the commitment of the MOU. The keys were: A set-up of a round table conference of AU, EU, and industry associations. The main goal of the African government and the European Union is to market and promote trade initiatives through available agreements for a prompt boost in economic platforms.
