By Moses Akaigwe
Victoria Backhaus-Jerling is the CEO of South Africa-based African Association of Automotive Manufacturers (AAAM), the leading organisation dedicated to driving Africa’s automotive industrialisation and sustainable growth.
Under her leadership, AAAM fosters global collaboration, strengthens regional value chains and champions policies that unlock Africa’s potential as a competitive automotive manufacturing hub.
Before joining AAAM, Backhaus-Jerling led the South African project office of the German Association of the Automotive Industry (VDA), where she was instrumental in shaping the German automotive sector’s engagement with Africa.
In this interview, the AAAM CEO highlights the importance of providing a legal framework for Nigeria’s auto policy and supporting its implementation with trade-related investment measures
Lack of legislation and effective implementation of a progressive automotive policy have disincentive effects on investments in the auto sector, she explained.
How would you introduce AAAM? What were the reasons for its establishment?
The African Association of Automotive Manufacturers (AAAM) is the continent’s only dedicated automotive industry body, established to drive the growth and industrialisation of Africa’s automotive sector.
AAAM works closely with African governments and pan-African organisations to develop enabling policies, attract investment and implement industrial strategies that support the creation of inclusive and resilient automotive ecosystems.
Our focus is on supporting sustainable, affordable mobility while aligning with continental growth priorities. As a strong advocate of the African Continental Free Trade Area (AfCFTA), AAAM is advocating for regional integration and the building of local value chains to unlock intra-African trade in vehicles and components.
We also advise on industrial and trade policy to help African countries position themselves as hubs for vehicle and component production and assembly. In essence, AAAM exists to shape and accelerate the development of a competitive, globally integrated automotive industry across Africa.
About 10 years after its formation, what would you say are the association’s achievements?
Since its formal establishment, AAAM has grown from 17 members to over 70 members from across Africa, after the association started fully operating in 2020– a clear indicator of its growing strategic importance across the continent.
We’ve actively lobbied for the development and implementation of automotive legislation in several African countries. Today, key markets such as Egypt, Ghana, Côte d’Ivoire, Kenya, and Nigeria are making tangible progress in shaping policy and regulatory frameworks – signalling strong momentum toward industry development. We have, in collaboration with the AfCFTA Secretariat and other stakeholders, developed continental auto strategy and implementation plan.
We believe deeper collaboration will be critical to driving scale, complementarity, and inclusive growth across Africa’s emerging automotive economies. The continent is poised to become the world’s final automotive frontier – a vision that is fast becoming reality.
Another remarkable achievement is the launch of the inaugural Industrial Policy Executive Short Course (ESC) in May. It is a strategic partnership with Afreximbank, AfCFTA and AAAM, and is managed by the Toyota Wessels Institute for Manufacturing Studies (TWIMS). This first-of-its-kind programme is empowering senior government officials from various African countries to drive informed, sector-specific policy decisions that foster localisation, supplier development, investment and sustainable growth in the automotive sector. With strong backing from OEMs, the ESC is not just a course – it’s a collaborative platform for shaping the future of mobility across the continent.
Are there continental or global bodies that are either supporting or partnering with AAAM?
Yes, AAAM has established strong partnerships with a range of influential continental and global bodies to advance Africa’s automotive industry. Key partners include Afreximbank, the German Association of the Automotive Industry (VDA), the AfCFTA Secretariat, and local automotive associations, such as NAMA).
Afreximbank: Our partnership with Afreximbank focuses on providing access to finance, harmonising standards, and developing training programmes to accelerate industrialisation and regional value chain development. Notably, Afreximbank has committed over $1 billion in support of the automotive sector, through instruments such as lines of credit, direct and project financing, as well as guarantees and supply chain finance.
This partnership directly addresses the lack of affordable financing — one of the major barriers to industry growth. Together, we also work with the African Union and the African Organisation for Standardisation (ARSO) to harmonise automotive standards across the continent.
Furthermore, AAAM and Afreximbank co-host platforms such as the Africa Automotive Show at the Intra-African Trade Fair (IATF), which help promote industry collaboration and investment.
German Association of the Automotive Industry (VDA): AAAM and VDA have developed a robust partnership aimed at shaping Africa’s automotive future. The collaboration centres on policy development, investment attraction, skills training, and local production. For Africa, the benefits include increased job creation, technology transfer, and regional integration. For Germany, it presents opportunities to access a growing market and diversify supply chains through strategic investments.
AfCFTA Secretariat: The African Continental Free Trade Area (AfCFTA) is a game-changer for Africa’s automotive industry. It promotes industrialisation, opens access to regional markets, and supports vital policy reforms. One of the most significant developments is the ongoing finalisation of the AfCFTA ‘Rules of Origin’ (RoO) policy for the automotive sector — a key priority for AAAM. The draft policy proposes a minimum of 40 percent local content for vehicles manufactured on the continent, which will support regional production hubs, encourage investment, and drive sustainable growth in new vehicle demand. AAAM continues to work closely with the AfCFTA Secretariat to align national policies with this continental framework through initiatives like the AfCFTA Auto Pact.
Collaboration with local auto associations and industry bodies: A few years ago, we signed a Memorandum of Understanding (MoU) between private sector associations in Africa and Europe to drive the development of the automotive industry across Africa. Essentially, at AAAM, we remain committed to enabling sustainable and affordable mobility in Africa. Strategic partnerships such as these are essential to developing regional value chains, expanding intra-African trade, and transforming the continent into a globally competitive automotive manufacturing hub.
What is your view on Nigeria’s Auto Policy that is yet to be given legal support and what are the implications?
Nigeria is a market with enormous potential. However, the automotive policy (Nigerian Automotive Industry Development, NAIDP) remains without legal backing – a significant limitation to its enforcement and long-term success. A formal Auto Bill still needs to be passed and enacted into law.
AAAM continues to engage key stakeholders from the industry and we value our strong partnership with the National Automotive Design and Development Council (NADDC). Political will is essential. Without legislation and effective implementation of a progressive automotive policy, the country risks an unchecked influx of grey imports and reduced investor confidence in the sector.
I saw many empty plants, which used to manufacture vehicles and components. This was sad to see, as on the other hand hundreds of thousands of used vehicles get imported into the country without adding any value.
The implementation of a policy supported by trade-related investment measures could be transformative for Nigeria – catalysing local production, creating jobs, and strengthening regional value chains.
Aside from the Auto Policy, are there other areas AAAM would suggest to Nigeria to improve on, in the auto sector?
Developing and implementing an effective auto programme is always the first step as it signals potential investors and local companies as well as the government’s commitment to develop an industry. Our industry is in it for the long haul, but for that we need planning and assurance.
In a recent presentation, you recommended regional collaboration and establishment of hubs, as means of enhancing development in the auto industries across Africa. Please, expatriate
Not every country can participate in every aspect of the automotive value chain. A collaborative and strategic approach is essential to ensure shared growth and meaningful industrialisation across the continent.
The automotive industry operates as a global production and trade system, led by OEMs (original equipment manufacturers) and driven by economies of scale. To be competitive, countries must manufacture at sufficient scale – and this is where the African Continental Free Trade Area (AfCFTA) becomes a game-changer. With the right policies, strategy, and ecosystem development, Africa has the potential to produce between 3.5 and 5 million vehicles annually.
Achieving this requires countries to implement national auto policies that are independent, but compatible. Regional hubs will play a central role – where a lead country focuses on vehicle assembly while neighbouring countries participate in the value chain through parts manufacturing, logistics, and support services.
Regional alignment is critical, particularly in ensuring complementarity rather than competition. As volumes grow, component manufacturers will follow OEMs once there is sufficient scale to justify their investment.
Ultimately, the architecture of national policies must align with a continental framework – one that enables regional production, enhances trade and drives long-term manufacturing competitiveness. I truly believe that more countries can become part of an automotive value chain – countries must determine which role they want to play and AAAM can support.
Why are there few members of your association from Nigeria?
Most of our current members are based in countries with established or emerging national auto policies that align with our broader continental objectives. However, we are confident that once Nigeria’s Auto Bill is passed and the policy environment stabilises, more stakeholders will recognise the value of joining AAAM and actively contributing to the development of the industry.
Is it correct to say that there seems to be a conflict of interests among member countries regarding issues like Rules of Origin, local value addition and applicable tariffs?
There is ongoing discussion – not necessarily conflict – among member states regarding the Rules of Origin (RoO) for auto under the AfCFTA framework. At its core, RoO determines the level of local content required for a vehicle to be considered “Made in Africa.”
Currently, there are two proposals being debated. One calls for 40 percent local value addition, meaning that at least 40 percent of a vehicle’s components or value must be derived from within Africa – which is achievable also due to cumulation.
This higher threshold is supported by the industry and the majority of African countries as it encourages real localisation – including the development of a component manufacturing base, beneficiation of raw materials, and broader industrialisation. For instance, copper from Zambia and other raw materials across the continent could be processed and utilised locally, stimulating multiple sectors of the economy.
The alternative proposal suggests a 30 percent local content threshold. This is being supported by a few smaller countries, which argue that a lower threshold would allow them to attract investments. I believe the opposite. I believe you won’t be able to build an industry at 30 percent.
AAAM and the AfCFTA secretariats strongly believe that the RoO will be concluded at 40 percent by October this year. This will encourage the industry to grow in supporting countries in finding their optimal position within the value chain. Assembly alone is not a sustainable long-term strategy. For true transformation, the continent must aim for higher levels of localisation and integration into the full automotive value chain.
It is clear that the auto sectors in South Africa and in some north African countries, are more vibrant than say, West Africa, Central Africa and the rest of the continent. What are the determining factors?
As mentioned in question earlier, policy certainty and political will are key drivers of industry participation and growth.
What is AAAM doing to rev up activities in countries where development is low?
Engaging with government and the local industry to establish and strengthen relationships, as well as offering support from our members to determine a country’s role in an automotive value chain.
How big a problem is the massive importation of tokunbo (or used) vehicles from mainly Europe to Nigeria and the rest of Africa?
When you’re in Europe, people always ask about Nigeria — it’s such a massive market with a huge population and an automotive legacy that’s hard to ignore. At one point, Peugeot alone was manufacturing around 90,000 vehicles a year there.
Unfortunately, that has since stopped. The industry is still very much present, but it’s waiting — waiting for the government to implement the draft auto bill. There’s significant interest from OEMs and component manufacturers, especially those geared toward the aftermarket, but again, they’re holding back due to policy uncertainty. One of the major challenges Nigeria, like much of Africa, faces is the overwhelming influx of imported used vehicles, which undermines demand for new ones. The right regulatory framework is needed.
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