The African Association of Automotive Manufacturers (AAAM) recently facilitated a discussion session between its members and the African Continental Free Trade Area (AfCFTA) Secretariat on the implementation of the recently approved AfCFTA Rules of Origin for the automotive sector.
The Rules of Origin were endorsed by the Assembly of African Union Heads of State and Government at its 39th Ordinary Session, held in February in Addis Ababa.
Under the new framework, vehicles and components must now contain a minimum of 40% African (originating) content, allowing up to 60% imported (non-originating) materials to qualify as Made in Africa for AfCFTA trade preferences. The Council adopted this 60% Value of Non-Originating Materials (VNOM) ceiling subject to review after five years, recognising it as an interim measure to stimulate localisation and build industrial capacity across Africa.
AAAM encourages stakeholders across the automotive industry to familiarise themselves with the Origin and Market Access Provisions for the Automotive Sector, including the AfCFTA Rules of Origin Manual and Summary of the Agreed Rules of Origin as well as Market Access Provisions.
“This achievement is a testament to collaboration between public and private sectors,” adds Martina Biene, President of AAAM. “It creates the framework for African countries to trade vehicles and components with each other more competitively, and to position Africa as a meaningful player in the global automotive industry.”
These documents are available on the AfCFTA website:
1. e-Tariff Book: https://etariff.au-afcfta.org/mapsearch
2. Rules of Origin Manual: https://etariff.au-afcfta.org/rulesoforigin
The approved AfCFTA Rules of Origin establish an important framework for African countries to trade vehicles and components more competitively with one another, while positioning Africa as a stronger participant in the global automotive industry.
Through collaboration across governments, industry and institutions, we have an opportunity to drive inclusive growth and sustainable development of Africa’s automotive sector.
