Industry Trend Analysis - Autos Investment Round-Up: Interest In New Markets Not Without Risk - SEPT 2017

BMI View: We will continue to see interest from carmakers in relatively new SSA production bases such as Ethiopia and Zimbabwe, as protectionist policies aimed at limiting imports and increasing domestic production bear fruit. However, we emphasise that there are still risks, such as Zimbabwe's liquidity problems, which will make it difficult for manufacturers to import parts and consumers to make purchases.

In BMI's regular round-up of production investments, we track the latest projects from the production side of the industry and analyse trends that we see developing on a regional basis. In doing so, we hope to build a picture of any potential hubs that may be developing, as well as company strategy in terms of production bases and export programmes.

Our latest investment round-up for the Sub-Saharan Africa (SSA) region continues the theme that was prevalent in the previous round-up, namely the emergence of different manufacturing bases in the region. Ethiopia has been attracting interest, which we expect to see gaining momentum as a result of the country's policies to encourage domestic production, while South Africa, as the most developed production base in the region, is starting to exhibit some of the same characteristics as developed states, with investment in expansion rather than 'greenfield' projects.

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