Abstract
This chapter assesses the prospects of regional value chains (RVCs) in car manufacturing in Africa, focussing specifically on Southern Africa (because of relatively advanced regional integration there). After examining the state of the automotive industry across the continent and in particular in the Southern African Development Community, the authors refer to international examples—the Association of Southeast Asian Nations, the country of India and the South American Mercado Común del Sur—so as to derive the prospects for and necessary steps towards RVCs in Africa—or, at least, on parts of the continent. The key idea here is that such value chains depend on a viable ‘automotive space’, meaning a sufficiently large market, on competitiveness in manufacturing and on supportive policy arrangements. The chapter outlines the challenges and opportunities concerning these three conditions. It concludes with policy recommendations regarding what can realistically be achieved in the region.
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Notes
- 1.
SKD assembly involves the final assembly of partly assembled vehicles.
- 2.
CKD assembly involves full assembly, including the welding of body panels. It requires substantial investment, which is not the case under SKD assembly.
- 3.
Interview with a South African automotive industry representative, Pretoria, 8 February 2016, and with a South African government official, Pretoria, 14 March 2016.
- 4.
Interview with a South African automotive industry representative, Pretoria, 8 February 2016.
- 5.
Interview with a South African government official, Pretoria, 14 March 2016.
- 6.
Industrial complementation refers to the allocation of the manufacture of products that are complementary in a value chain to different countries.
- 7.
Interview with a SADC official, Gaborone, 8 February 2016.
- 8.
Interview with a SADC official, Gaborone, 8 February 2016.
- 9.
Interviews with a South African automotive industry representative, Pretoria, 8 February 2016, and with a South African automotive industry advisor, Johannesburg, 7 March 2016.
- 10.
Interview with a South African automotive industry representative, Pretoria, 8 February 2016.
- 11.
Interview with a South African government official, Pretoria, 14 March 2016.
- 12.
For more information on this, see: http://ascci.co.za
- 13.
Interview with a South African government official, Pretoria, 14 March 2016.
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The authors would like to thank Sören Scholvin for editing suggestions made on a previous draft of this chapter.
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Markowitz, C., Black, A. (2019). The Prospects for Regional Value Chains in the Automotive Sector in Southern Africa. In: Scholvin, S., Black, A., Revilla Diez, J., Turok, I. (eds) Value Chains in Sub-Saharan Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-030-06206-4_3
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