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ECA calls for stronger SME integration in Africa’s automotive value chains

13 November, 2025
ECA calls for stronger SME integration in Africa’s automotive value chains

Windhoek, Namibia, 13 November 2025 (ECA) – The United Nations Economic Commission for Africa (ECA), through its Subregional Office for Southern Africa (SRO-SA), together with the six countries participating in an Automotives Regional Value Chain workshop  has called for strengthened support to enhance the participation of Small and Medium-sized Enterprises (SMEs) in Africa’s rapidly growing automotive value chains.

The call was made during a Capacity Building Workshop for SMEs on Market Access and Market Information for Supplying Automotive products through Sustainable Procurement, held from 11–13 November 2025 in Windhoek. The three-day workshop brought together policymakers, SME representatives, development partners, and private sector stakeholders from Botswana, Lesotho, Namibia, South Africa, Zambia and Zimbabwe to integrate sector players into the automotive value chains and enable pathways to Original Equipment Manufacturers (OEMs). The initiative includes the design of an automotive Sustainable Supplier-Finder Database (ASSFiD) which will facilitate business linkages and sourcing of supply raw materials.

Speaking at the official opening, Dr. Michael Humavindu, Executive Director, Namibia Ministry of Finance, highlighted the importance of developing the automotive sector in Southern Africa. He further underscored the need to address policy provisions pertaining to harmonizing of rules of origin, developing regional value chains, promoting the Special Economic Zones Agenda and mainstreaming allied production of key components through the regional natural endowment.

Ms. Ilona Nkandi, Deputy Director of Industrialization at Namibia’s Ministry of Industry, Mines and Energy equally stressed the need to develop a robust automotive industry and reaffirmed the government’s commitment to empower SMEs as key drivers of Namibia’s and the wider Southern African region’s industrial transformation.

“MSMEs are the backbone of our economy, fostering innovation, generating employment, and contributing significantly to industrial development,” Ms. Nkandi said. “However, many enterprises still face challenges in accessing reliable market information, meeting procurement standards, and positioning their products competitively in sustainable markets.”

Speaking at the same event, Ms. Olayinka Bandele, Chief of the Inclusive Industrialization Section at ECA SRO-SA, emphasized the central role of SMEs in driving Africa’s automotive and e-mobility transformation. She noted that “SMEs account for nearly 90 percent of Africa’s businesses and up to 80 percent of jobs and that their meaningful integration into automotive value chains is essential if the continent is to realize its industrial ambitions.”

She outlined key interventions led by ECA to strengthen SME competitiveness and inclusion  through developing and reviewing national and regional automotive policy frameworks that support the integration of SMEs into the value chain: organizing capacity building workshops and training programs to strengthen the technical capacities of SMEs; designing innovative tools and systems which facilitate SMEs integration into the automotive regional value chain; creating public-private partnerships and enhancing business linkages; facilitating regional integration through AfCFTA; conducting strategic studies and promoting sustainable and inclusive industrialization.

ECA Consultants from Automotive Investment Holding (AIH), South Africa, presented the design schematic for the Automotive Sustainable Supplier-Finder Database (ASSFiD), which could act as a tool to expose SMEs to OEMs, component manufacturers, including parts and accessories considerations and requirements. AIH also highlighted major constraints faced by SMEs including limited technical capacity, high certification costs and low awareness on standardization processes.

The Second day of the workshop focused on sharing practical experiences from industry experts and practitioners on how ASSFiD can unlock new market access, strengthen linkages, and drive sustainable procurement across Africa’s automotive value chain.

The workshop concluded with discussions on linking the database, once created and launched, to country specific strategies and proposed a roadmap for the utilization of the database. ECA and the participating countries reaffirmed their commitment to inclusive industrialization, regional value chain development, and sustainable procurement practices, ensuring that African SMEs are not just participants but key enablers of the continent’s industrial future.

Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org