Morocco, the Democratic Republic of Congo (DRC), and Zambia have outlined a joint roadmap to develop value chains in electric mobility, linking the three countries.
The move came at the “High-Level Policy Dialogue on the Development of Automotive Regional Value Chains and E-Mobility” held in Lusaka Zambia, according to a statement issued by United Nations (UN) Economic Commission for Africa(ECA) on Monday.
The three countries agreed to sign a memorandum of understanding in 2025 to develop the value chains through establishing a Special Economic Zone.
Senior officials and the private sector from Botswana, Lesotho, Malawi, Namibia and Zimbabwe, who also participated in the policy dialogue, took note of the types of automotive components that may be more readily manufactured in each country given existing capacities, enabling firms to increase penetration into automotive regional value chains.
“Africa’s automotive industry is projected to grow by 40%, reaching $42.06 billion by 2027. Simultaneously, the global transition to electric mobility presents transformative opportunities, with the global electric vehicle (EV) market projected to reach $46 trillion by 2050,” said Adam Elhiraika, Director of the ECA Office for North Africa.
The African Continental Free Trade Area (AfCFTA) could play a crucial role in enabling Africa to seize this opportunity, Elhiraika noted. According to an upcoming study by the Economic Commission for Africa, removing tariff barriers in accordance with the agreement could significantly boost intra-African trade in intermediate goods by 2045, with projected increases of nearly 85% in the vehicles and transport equipment sector, 46% in transport services, and 28% in energy and mining.
MG/as/APA