The African Export-Import Bank (Afreximbank) has committed a US$1 billion Automotive Fund to support the development of local content and strengthen Africa’s automotive manufacturing industry.
The initiative forms part of efforts to build an integrated African automotive industry under the African Continental Free Trade Area (AfCFTA).
At the inaugural Africa Automotive Investment Forum 2026 in Alamein, Egypt, Afreximbank Executive Vice President for Intra-African Trade and Export Development, Mrs Kanayo Awani, joined governments, manufacturers, original equipment manufacturers and investors to discuss the development of the sector.
The proposed industrial model would see African countries specialise in the production of different inputs and components for vehicle manufacturing across the continent.
Under the model, tyres could be produced in Côte d’Ivoire, leather supplied from Botswana, textiles from Benin, and components from South Africa and Morocco for use in production across African markets.
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Afreximbank also highlighted the continent’s critical mineral resources as an opportunity to establish local supply chains for batteries and electric vehicles.
The bank said its support for the automotive sector includes policy development, project preparation, guarantees, debt and equity financing, alongside the US$1 billion Automotive Fund linked to local content.
It has also supported the harmonisation of 43 automotive standards, a move aimed at allowing components manufactured in one African country to enter production lines in another.
Afreximbank said the focus must now shift to implementation, including developing bankable projects, strengthening African supplier networks and turning available financing into productive manufacturing capacity.
The bank said the AfCFTA provides the market required to support an integrated automotive industry, while Africa’s raw materials provide the foundation for producing more of the value within the continent.
