A newly published report by the African Continental Free Trade Area (AfCFTA) and the World Economic Forum (WEF) has forecast a four to five million production of Electric Vehicles (EVs) in Africa by 2035.
This means that Africa would benefit from US$7.7 trillion EV market value in the world, according to a joint report by the AfCFTA and WEF which revealed that the EV market was emerging as a focal point for the continent.
The report released on Saturday stated that with the global EV market projected to reach US$7.7 trillion by 2025 and a staggering US$46 trillion by 2050, Africa, possessing 19 percent of the world’s critical minerals and metals essential for EV production, stood poised for substantial participation.
The report underscored the accelerating growth of the automotive industry in Africa catalysed by the AfCFTA.
The AfCFTA, coupled with global trends, is seen as a catalyst for expanding opportunities, potentially involving more countries in the automotive value chain.
Recognizing this potential, the WEF is actively collaborating with partners to achieve the ambitious target of manufacturing four to five million vehicles by 2035.
“This initiative also aims to foster the proliferation of manufacturing plants across the continent, reinforcing the commitment to local value addition,” according to the report.
In alignment with the broader trajectory, the report forecasts substantial growth in the African automobile industry, projecting it to surpass US$42 billion by 2027.
Despite electric vehicles currently representing a modest share of Africa’s automotive production and sales, rising demand is evident.
The implementation of bans on internal combustion engine vehicles by some of the continent’s major trading partners, effective as early as 2035, had further fuelled this momentum.
“As the continent positions itself to capitalise on the EV surge, Africa’s aspiration to become a key player in global EV production reflects a strategic alignment with both regional and international trends,” the report stated.
The report presented initiatives from the WEF partners to maximise the opportunities of a new free trade area across Africa in the four key sectors of agriculture, transport, automotive and pharmaceuticals.
The AfCFTA offered the opportunity to unify the small, fragmented markets of 55 separate African states into a single market that, by 2030, would represent 1.7 billion people and US$6.7 trillion in consumer and business spending.
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