Africa wants to place itself on the automotive roadmap
Africa is keeping investors on their toes with forecasts far from being true to their word. The inherent volatility and instability of African markets is difficult to fully grasp until seen in hindsight.
As was the case in 2013, new vehicle sales were forecast to exhibit strong growth rates on a yearly basis. However, the weakening economics of developing nations, soft oil prices, growing exchange rate risk, and a preference for safe-havens has seen the market fall on a yearly, and even monthly, basis.
Despite the widespread import of used cars, the average level of motorisation remains the lowest globally in Africa, at an estimated 44 vehicles per 1,000 inhabitants. New vehicle sales in Africa lag significantly behind other regions, with unit sales estimated at 1.55 million units in 2014. This represents approximately 1% of global new car sales and 1.36 new vehicles for every 1,000 inhabitants. This contrasts with 18.05 and 56.94 new vehicles per 1,000 inhabitants in China and the United States in 2016.