African Automakers Association President Urges Faster Implementation of Free Trade Agreement with 40% Rules of Origin

African Automakers Association President Urges Faster Implementation of Free Trade Agreement with 40% Rules of Origin

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Oct 3, 2026 06:18 PM
Article Summary

Tarek Moussa, President of the African Association of Automotive Manufacturers (AAAM), has urged governments and the private sector to accelerate the implementation of the African Continental Free Trade Area agreement and transform regulatory frameworks into tangible industrial investments. Speaking at the African Automotive Investment Forum 2026 in New Alamein City, Moussa said the agreement on 40% rules of origin for vehicles represents a crucial step toward industrial integration among African nations. He stressed the need for cross-border joint projects and specialized programs to develop local suppliers and enable SMEs to participate in automotive component supply chains. The call comes as African countries seek to attract new investment and boost export capabilities in the automotive sector.

Tarek Moussa, President of the African Association of Automotive Manufacturers (AAAM), has called on governments and the private sector to accelerate the implementation of the African Continental Free Trade Area agreement. He made the call during the African Automotive Investment Forum 2026 in New Alamein City. The message was blunt.

40% Rules of Origin: A Turning Point for African Auto Manufacturing

The agreement on 40% rules of origin for vehicles marks a significant step toward industrial integration among African nations, Moussa said in his keynote titled "Unlocking Africa's Automotive Potential Under the AfCFTA." He stressed that the next phase must turn these rules into concrete industrial investments that boost local content and develop supply chains across the continent. The clock is ticking.

Building a globally competitive African auto industry requires cooperation between different markets, Moussa noted, adding that an integrated ecosystem can't be achieved by relying on a single market in isolation from neighboring countries. The African Association of Automotive Manufacturers president also called for cross-border joint projects and specialized programs to develop local suppliers, enabling small and medium enterprises to participate more actively in automotive component supply chains and reach Tier 1 and Tier 2 manufacturers according to international standards. A united market is non-negotiable.

Cross-Border Projects and Supplier Development Programs

Turning regulatory frameworks into actual projects includes building factories and facilitating the movement of vehicles and components between African markets. This push comes as countries across the continent seek to attract new investment in the automotive sector and boost their export capabilities. Local suppliers stand to gain the most. The opportunity is real, but execution will decide everything.

Frequently Asked Questions

3 questions answered

It is the required local content percentage for vehicles traded between African countries to qualify for tariff exemptions, promoting industrial integration and value addition within the continent.

Tarek Moussa is the President of the African Association of Automotive Manufacturers (AAAM).

The forum was held in New Alamein City, where Tarek Moussa delivered a keynote on unlocking Africa's automotive potential under the AfCFTA.

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