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Kenya and Ethiopia Will Continue to Develop Local Automotive Capacity While Used Car Imports Continue to Grow
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Africa is the world’s last growth frontier. With the lowest motorisation rate in the world, there is considerable potential for growth in the automotive industry. Most of the cars on Africa's roads are imported. While governments have taken steps to regulate the import of used cars, the practice continues to persist. New and locally produced vehicles in Kenya and Ethiopia are not affordable. The lack of financing options in these countries makes the purchase more difficult. The opportunity for automakers is to get closer to these markets and service them without seeing used cars as a threat to new vehicle sales, but a characteristic of the operating environment.
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