Afreximbank, AAAM Renew Pact to Drive Africa’s Automotive Industrialisation

The African Export-Import Bank (Afreximbank) has renewed its memorandum of understanding (MoU) with the African Association of Automotive Manufacturers (AAAM), reinforcing a continental partnership aimed at strengthening intra-African trade, industrialisation, and investment in the automotive sector.

The MoU was signed on the sidelines of the Intra-African Trade Fair 2025 (IATF2025) in Algiers, Algeria, by Dr. Gainmore Zanamwe, Afreximbank’s Director of Trade Facilitation and Investment Promotion, and Ms. Martina Biene, President of AAAM.

Strategic Pillars of the MoU

The renewed MoU focuses on three core areas:

• Regional automotive value chains – mapping and activating cross-border production and supply networks.

• Automotive financing – creating auto-specific financing solutions to unlock investment.

• Policy and capacity building – working with governments and stakeholders to harmonise regulations and develop skills.

Together, these pillars are designed to strengthen Africa’s position as a competitive automotive hub while supporting the broader goals of the African Continental Free Trade Area (AfCFTA).

Afreximbank’s Commitment

Speaking at the signing, Dr Zanamwe highlighted Afreximbank’s long-term commitment to advancing Africa’s automotive ambitions.

“This MoU underscores the commitment of Afreximbank and AAAM to strengthen Africa’s industrialisation goals through strategic partnerships. By aligning financial innovation, policy support, and value chain development within the automotive sector, we are fostering a new era of intra-African trade and manufacturing.”

He stressed that the initiative would catalyse industrialisation by:

• Spurring local automotive manufacturing.

• Strengthening regional integration and trade flows.

• Creating skilled jobs for Africa’s youth.

• Reducing reliance on imported second-hand vehicles.

Industry Perspectives

AAAM President Martina Biene welcomed the renewal, describing Afreximbank as a “phenomenal partner” in efforts to build Africa’s automotive industry.

“Logistics, energy, skills development and financing mechanisms must keep pace with our ambitions. Afreximbank’s leadership is critical in this regard, but so too is the commitment of our governments to invest in infrastructure that connects factories to markets,” Biene said.

She emphasised that the collaboration between industry and governments could enable Africa to manufacture between 3.5 and 5 million vehicles annually by 2035, generating jobs, strengthening local supply chains, and promoting affordable mobility.

Continental and Global Collaboration

The renewed framework will also align AAAM’s expansion strategy with Afreximbank’s continental trade mandate. It envisages collaboration with the African Union, the AfCFTA Secretariat, and the African Organisation for Standardisation (ARSO) to:

• Harmonise automotive standards.

• Support blended financing solutions.

• Improve trade facilitation.

• Scale up capacity building in production and supply networks.

These coordinated efforts are expected to boost Africa’s competitiveness and ensure that industrialisation benefits are shared across the continent.

IATF2025: A Platform for Growth

The MoU renewal took place during IATF2025, a landmark event that showcased Africa’s trade and industrial potential.

Highlights from IATF2025 included:

• Attendance by 112,000 visitors from 132 countries.

• Participation by 2,148 exhibitors across multiple sectors.

• US$48.3 billion in trade and investment deals concluded during the seven-day fair.

A key feature of the fair was the Africa Automotive Show, co-hosted with AAAM, which brought together manufacturers, subcontractors, and equipment suppliers. The show focused on developing regional supply chains and showcasing Africa’s potential as a future global automotive hub.

A Shared Vision for Africa’s Automotive Future

Both Afreximbank and AAAM expressed confidence that the renewed partnership would accelerate Africa’s industrialisation drive, foster innovation, and enhance job creation across the continent.

“Despite challenges, the opportunities are immense. With coordinated action, Africa can become a strong automotive manufacturing centre that serves its own markets and competes globally,” Biene concluded.