The market for auto parts for passenger vehicles in Africa, currently valued at $7.68bn, could double in size by 2020 according to one expert speaking at the Automechanika Dubai trade show, the largest automotive aftermarket gathering with 1,695 exhibitors from 59 countries.
“Countries such as Nigeria, Kenya, Uganda, Ghana, have witnessed double digit growth in demand of parts in the past five years,” detailed Subhash Joshi, industry manager for the automotive practice at Frost & Sullivan, highlighting the key markets that will drive growth.
Focusing on the opportunities of doing business in the fast-emerging African market, Joshi said that there are more than 21.6 million cars on the continent’s roads, and that Egypt, Algeria, Morocco and Nigeria currently make up nearly 70% of spare parts consumption.
But he continued: “The UAE is known to be a major re-exporter of spare parts throughout the Gulf and wider Middle East, but now Sub-Saharan African countries such as Nigeria, Angola, Congo Republic, and North African countries such as Libya are gaining importance.
“These countries are becoming larger markets accounting for 30-35% of all exports from the UAE, and in three to four years, their market share in the African region will rise to 45-50 %.”
However, the region still has its challenges, Joshi added, saying: “The African market is unstructured and the share of non-genuine parts is the biggest challenge in this region, though political issues, credit policies, and business sustainability also affect Central Africa.”
Despite this Joshi held that the future outlook remained bright for those exporting to Africa, with the best opportunities existing in Kenya, Angola, Uganda, Nigeria and Ghana.
Organised by Epoc Messe Frankfurt, Automechanika Dubai is a three-day event focused on parts, accessories, tuning, repair, maintenance, tyres, batteries and washing/service stations.