{"id":2005,"date":"2026-10-29T09:02:20","date_gmt":"2026-10-29T09:02:20","guid":{"rendered":"https:\/\/in4ride.com\/?p=2005"},"modified":"2026-10-29T09:02:20","modified_gmt":"2026-10-29T09:02:20","slug":"policy-implementation-trumps-policy-intent","status":"publish","type":"post","link":"https:\/\/in4ride.com\/?p=2005","title":{"rendered":"POLICY IMPLEMENTATION TRUMPS POLICY INTENT"},"content":{"rendered":"\n\n
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Africa does not lack automotive ambition. Across the continent, governments increasingly recognise the automotive industry as a catalyst for industrialisation, job creation, skills development, technology transfer and greater intra-African trade.<\/p>\n\n\n\n

By Victoria Backhaus-Jerling<\/em><\/p>\n\n\n\n

In several countries, considerable work has already gone into developing automotive policies, engaging industry and identifying the interventions required to establish or expand domestic automotive value chains. The next challenge is arguably the most important: implementation.<\/p>\n\n\n\n

For global automotive manufacturers and component suppliers making long-term investment decisions, a well-crafted policy is an important signal of intent. However, investment ultimately follows certainty. Companies need to understand not only what a country wants to achieve, but how its policies will be implemented, when they will take effect and whether the framework will remain sufficiently consistent for businesses to make investment decisions that may stretch over decades.<\/p>\n\n\n\n

Automotive manufacturing is particularly sensitive to this certainty. Establishing assembly operations, supplier parks and component manufacturing facilities requires significant capital, long planning horizons and confidence in future market conditions. Investors therefore assess policy consistency, fiscal incentives, trade arrangements, infrastructure, market access, localisation requirements and the regulatory environment before committing capital.<\/p>\n\n\n\n

This is why Africa must increasingly shift the conversation from policy development to policy execution. Encouragingly, important progress is being made.<\/p>\n\n\n\n

Kenya, for example, continues to advance its automotive policy framework. Its Automotive Bill has undergone public participation and further government processes ahead of consideration by Parliament. Kenya also launched its National Electric Mobility Policy in February 2026, providing a framework covering electric-vehicle adoption, infrastructure, local manufacturing and investment.<\/p>\n\n\n\n

Ghana provides another important example of the journey from policy development towards implementation. The second phase of the Ghana Automotive Development Policy, covering 2026 to 2036, has largely been drafted, with the fiscal incentive framework identified as the outstanding component. The policy envisages deeper industrialisation, development of component manufacturing and the integration of electric and hybrid vehicles into the country\u2019s automotive strategy.<\/p>\n\n\n\n

The significance of completing these processes should not be underestimated. When investors have clarity about incentives, localisation requirements and the regulatory environment, they can construct business cases, approach their boards for capital and begin planning factories, suppliers and employment. When implementation remains uncertain, however, investment decisions can be delayed.<\/p>\n\n\n\n

This is not unique to one country. Nigeria is working towards legislative enactment of its National Automotive Industry Development Plan, with passage targeted during 2026. The proposed framework includes important pillars such as an automotive commission, development fund, local-content objectives, standards and licensing. Some implementation details, including localisation measures and investment-support mechanisms, still require greater clarity.<\/p>\n\n\n\n

Other countries are at different stages of the same journey. Tanzania has been working towards developing an automotive programme focused initially on buses, trucks, trailers and body building, supported by engagement with Afreximbank and the African Association of Automotive Manufacturers (AAAM). Ethiopia has also been considering proposals around manufacturing opportunities, while C\u00f4te d\u2019Ivoire continues work towards implementation of its automotive industry development programme.<\/p>\n\n\n\n

These examples illustrate an important point: Africa\u2019s challenge is increasingly not whether we understand what needs to be done, but how quickly and consistently we can turn that understanding into action.<\/p>\n\n\n\n

Political and administrative transitions are inevitable in democracies. Ministers change, governments change, and national priorities evolve. However, industrial policy requires a degree of continuity that extends beyond political cycles.<\/p>\n\n\n\n

An automotive plant cannot be planned around an electoral term. Neither can a component supplier make a long-term investment if the rules governing localisation, incentives or imports may change before that investment reaches maturity.<\/p>\n\n\n\n

This does not mean policies should never change. Governments must retain the ability to respond to economic conditions, new technologies and national development priorities. What investors value is a transparent process, reasonable transition periods and confidence that commitments will be implemented consistently.<\/p>\n\n\n\n

The opportunity presented by the African Continental Free Trade Area (AfCFTA) makes this even more urgent. In February 2026, African Union Heads of State and Government formally adopted the automotive Rules of Origin covering automotive products under tariff headings 8701 to 8716, including a threshold of 40% African originating content. This represents an important step towards creating the scale required for an integrated African automotive industry.<\/p>\n\n\n\n

No country needs to manufacture every component of a vehicle. One country could develop wire harnesses, another batteries or automotive electronics, another tyres or seating systems, while established assembly markets provide demand and scale. Botswana\u2019s work exploring opportunities extending from copper through to automotive wire harnesses demonstrates the potential of such regional value-chain thinking. Namibia is similarly exploring opportunities around component manufacturing and regional value addition.<\/p>\n\n\n\n

But regional integration will only work if national policies connect with continental ambitions. Africa is competing for automotive investment with markets across Asia, Latin America, Europe and the Middle East. Capital will ultimately gravitate towards markets where policy is clear, implementation is credible, and investors can reasonably calculate risk and return.<\/p>\n\n\n\n

The continent has already done much of the difficult thinking. Governments, industry bodies, development finance institutions and the private sector have spent years developing frameworks for automotive industrialisation.<\/p>\n\n\n\n

The next phase must be about execution. Every policy implemented, every regulation clarified, and every incentive framework activated strengthens Africa\u2019s investment proposition. Conversely, prolonged uncertainty increases investment risk and can cause projects to be postponed or directed elsewhere.<\/p>\n\n\n\n

The message therefore should not be that Africa needs more automotive policies. Africa needs to turn the policies it already has into factories, suppliers, skills, jobs and trade.<\/p>\n\n\n\n

That is how policy ambition becomes industrialisation.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Victoria Backhaus-Jerling is CEO of the African Association of Automotive Manufacturers (AAAM).<\/em><\/strong><\/p>\n\n\n\n

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