Nigeria Makes The List As Top 4 Biggest Car Manufacturing Countries In Africa 

To some of the car making countries, they have Africa as one of their manufacturing homes even though there’s still need for some work.

Recently, a list was released of the top big African countries for car manufacturing and Nigeria made the list. South Africa leads as first in the list of the countries with the best-developed automobile industry in Africa.

Nigeria follows with many auto companies trying to enter the market populated by over 200 million people.

This was released in an article from Business Insider which cited a recent report by Fitch Solutions that says that Africa is the least attractive in the world in its Auto Production Risk/Rewards Index (BRI), with a score of 38.4 out of 100.

It states that Africa continues to greatly perform below par with an average of 50.0. Highlighting the limited rewards and risks present on the continent.

According to the article on Insider, the report recognized profitable fundamentals that present an opportunity for the continent to grow its automobile industry and go on to become a strong player in the long run.

The reasons for the underperformance include low labour costs and supportive automobile policies by governments on the continent.

Here are the countries in Africa listed to be doing well in car manufacturing.

South Africa: The country currently has one of the most developed automobile industries on the continent and is the most attractive automobile market. South Africa has a more diverse presence of vehicle makers, as well as a larger number of auto component makers in Africa.

Another factor that keeps South Africa at the top is its favourable competitive landscape that has contributed to its growing auto industry.

Nigeria: Nigeria comes second on the list, as Africa’s largest economy by GDP. According to Fitch Solutions, “Nigeria’s large driving-age population remains a key appeal for further investment into the country.”

A lot of car manufacturing companies are making moves into the country which uses 80 percent of used vehicles, spending about 601.5 billion Naira importing vehicles into the country.

Presently, the local car manufacturer, Innoson Motors based in the southeastern part of the country, is a leading car maker. However, reports have emerged recently of another car manufacturer, Ingrace entering the space.