With a population of over a billion people and a consistent rise in income levels and quality of life, there is ample room for growth in the automotive industry in Africa. This was the finding from research conducted a couple of years ago from global consulting firm, Deloitte.
The report found that the underdeveloped nature of Africa’s automotive industry means that there is scope for the industry to rapidly develop across the entire value chain, including vehicle production, assembly, sale and after-sales service.
The current economic and social changes in Africa, which include rising per capita income levels, a projected increase in motorisation rates and financial markets that are continuously developing, has prompted Deloitte to label Africa as the “final frontier for the global automotive industry”.
Research completed at the time of the report demonstrated that the automotive market in the continent was still relatively small – it’s motorisation rate of 44 vehicles per 1 000 inhabitants is well below the global average of 180 vehicles per 1000 people. However, while only about 1.55 million new vehicles were registered or sold across Africa in 2015, new vehicle sales could be as high as 10 million units a year within the next 10 years or so.
Cartrack has benefited from the developing nature of Africa’s economies having established a presence in 11 countries on the continent, including South Africa (head office), Botswana, Kenya, Malawi, Mozambique, Namibia, Nigeria, Rwanda, Swaziland, Tanzania and Zimbabwe.
The Fourth Industrial Revolution to boost Africa?
Deloitte maintains that The Fourth Industrial Revolution (which refers to the mass automation and digitisation of industries) could provide an opportunity for African economies to create strong automotive manufacturing industries, which in turn could stimulate inclusive growth in these countries and help them reduce their exposure to commodity price fluctuations.
Cartrack is your African partner
As the African automotive market prepares for significant growth, Cartrack is primed to be an invaluable partner to both private car owners and companies across the continent by providing superior and world-class vehicle recovery and fleet management services. Contact us today to find out how our services can make your vehicles more secure and add real value to your fleet.