December 22, 2024

· Chinese car companies help Ethiopia become Africa's largest automaker

According to the European version of "Automotive News" reported on June 4, as Chinese automakers increased their investment in Ethiopia and assembled more cars, the country is committed to building itself into the largest automaker in Africa in the next 20 years.
Ethiopia has previously produced about 8,000 commercial vehicles and other models each year for the Ethiopian domestic market, about a quarter of which are cars. Business executives say the country is fully capable of further increasing production if it can increase foreign exchange to import more parts. In 2015, Ethiopia imported more than 38,000 vehicles, a year-on-year increase of 50%.
The development of the automobile industry is expected to turn Ethiopia into a new industrial center. As one of the poorest countries in Africa, agriculture is affected by the erratic climate, the cyclicality of the agricultural economy is destroyed, and people are suffering from hunger.
Ethiopia plans to build an industrial zone in the capital Addis Ababa and the northern city of Mekelle to work with China on the assembly of auto parts. A senior executive of the Lifan Motor Group in Ethiopia said that the Ethiopian market has great potential. The current assembly capacity of the factory is 5,000 vehicles per year, but the actual output is less than 1,000. The company hopes to export cars from Ethiopia in 2017 or 2018.
At present, South Africa and Morocco are far ahead in the African automotive industry, with more than 600,000 and 200,000 vehicles manufactured each year. Countries such as Egypt, Sudan and Kenya have also joined the field of vehicle assembly. For Ethiopia, achieving strategic ambitions faces enormous challenges. According to the World Bank's 2014 data, Ethiopia's per capita annual income is only 550 US dollars, while South Africa and Morocco reach 6,800 US dollars and 3070 US dollars respectively, and the former has a huge domestic market to drive industrial development, while the latter has a huge European market. Look at each other.
However, Ethiopia has maintained its position as Africa's fastest economic growth body for nearly a hundred years. Today, the new dam has built Ethiopia into an electricity exporting country and established a rapidly expanding transportation network. Ethiopian Industry Minister Tadesse Haile said that Ethiopia's development goal is to become Africa's leading manufacturing center and become the largest automaker in the African continent in the next 15 to 20 years.

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