Background and Context In Africa today, integrated manufacturing and assembly of vehicles is concentrated entirely in South Africa and Morocco. South Africa’s automotive industry has a long history and is home to major European, American, and Asian Original Equipment Manufacturers (OEMs). The automotive sector in South Africa targets both domestic and export markets, facilitated by attractive government incentives as well as free trade agreements with key export markets. On the other hand, in Southern Africa (excluding South Africa), vehicle production is limited to small-scale assembly of imported Semi Knocked-Down (SKD) and Completely Knocked-Down (CKD) vehicle kits, which have lower levels of local value addition in comparison to Complete Built Up (CBU) production.
However, scale remains small and underutilized, with limited local value-addition. In Southern Africa, countries such as Lesotho, known for its leather inputs, along with Zambia and Botswana, both active in electronics manufacturing, have demonstrated capabilities in component production. Others, like Malawi exhibit latent potential, especially in rubber ,although this is yet to translate into tangible industrial outcomes. To unlock the region’s full potential, the development of integrated regional value chains is essential, linking upstream raw material suppliers with midstream processors and downstream assembly and distribution networks. Achieving this requires enhanced coordination, infrastructure development , and policy alignment across member states to foster a cohesive and competitive manufacturing ecosystem. Southern African Leather Value Chain Productive Capacity Southern African region is actively promoting the growth of its regional leather value chain. Currently, the region is poised to provide support to the automotive sector, which includes intra-regional interactions through MSMEs.
Southern Africa’s leather value chain aligns with the region’s strategic objectives of industrialization and regional integration through its automotive sector and value chain-led economic growth. Given the above, UNECA is seeking to engage the services of a consultant to simplify market information for MSMEs in the automotive sector, supporting their efficiency by providing access to trade intelligence through a free digital portal. The digital platform will also enhance supplier finder information for potential buyers, thereby supporting business linkages for MSMEs seeking to supply raw materials in the automotive sector.