Coega Development Corporation expands its automotive expertise in Senegal
The Coega Development Corporation (CDC) has announced that it is expanding its external advisory services and expertise beyond national borders as part of the Coega Africa program.
âThe final negotiations between the Senegalese Investment Agency, PAIMRAI, and CDC recently ended with the appointment of CDC and Automotive Investment Holdings (AIH) to develop a strategy for the development of the automotive industry in Senegal “said CDC, Head of Marketing, Brand and Communications, said Dr Ayanda Vilakazi on Monday.
The announcement follows this year’s Intra-African Trade Fair conference, which took place November 15-21, 2021 under the theme of the African Continental Free Trade Area (AfCFTA) – A Single Market for goods and services in 55 countries, aimed at boosting trade and investment. .
Vilakazi said the auto sector in sub-Saharan Africa currently accounts for less than 3% of global production, compared to 30% for China, 22% for Europe and 17% for North America.
âThe motorization rate in this region was very low in 2018, with 42 cars per 1,000 inhabitants, compared to 837 in the United States, 173 in China and 214 in South Africa, for a global average of 180 cars per 1,000 inhabitants. . the rate hardly exceeds 3% in Senegal, which means that only 30 people out of 1,000 own a private vehicle, âhe said.
Apart from Nigeria and Ghana, the automotive industry remains nascent in the member countries of the Economic Community of West African States, whose industrialization process faces the threat of used car imports. from Europe, Japan, United States, Canada and other countries.
âSub-regional and regional integration, through the development of upstream and downstream links in the automotive industry value chain, will boost industrialization and competitiveness across Africa,â CDC said. .
According to research conducted by the Dakar Foreign Trade Office, around 100,000 vehicles are imported into the country each year, requiring constant replacement of parts due to difficult climatic and infrastructural conditions.
âSenegal imports almost all spare parts. However, the strong focus of the government on encouraging the automotive industry in the country is an important driving force for Senegal. Strict environmental regulations on pollution and carbon emissions require heavy investments.
“The Senegalese automotive industry strategy developed by CDC and IAH will provide a comprehensive analysis of the automotive industry in Senegal, its potential and the upstream and downstream links that can be developed with countries like Africa. South and Morocco, which are the main vehicle manufacturers on the continent, âsaid the CDC.
The CDC appointment sees the organization expanding its project footprint across the continent, with projects currently in Zimbabwe, Cameroon for the Central African Republic and now in Senegal.
Drawing on 21 years of expertise in project management of mega and complex infrastructure projects in South Africa for the public and private sectors, Coega SEZ has successfully developed its automotive zone and attracted investments exceeding 895 million USD.
“As the leading Special Economic Zone (SEZ) in Africa, CDC stands ready to foster collaboration with the rest of the continent to promote the coordination, advocacy and conduct of the implementation of cross-border free trade and leverage supply chain networks and technological advancement.
“We believe that the African Continental Free Trade Area (AfCFTA) will provide investors with easy access to new and rapidly developing markets, while having the potential to lift 30 million people out of extreme poverty, but the achievement of its full potential will depend on major political reforms. and trade facilitation measures, âsaid Nkuli Mxenge-Mayende, CDC Global Market Manager.
(With contributions from the South African government press release)