Leveraging Standard and Regulatory Framework to Boost African Automotive Industry

1. LEVERAGING ON STANDARD AND REGULATORY FRAMEWORK to boost African automotive industry A COMPREHENSIVE STANDARDIZATION STRATEGY FOR AFRICA’S CLEAN MOBILITY

2. Automotive industry – over view World-over, the automotive industry plays an important and influential role in the advancement of technology and overall industrial development in an economy. It provides strong foundation for technological R&D. In the developed world, the industry is characterized with overcapacity and low profitability. Markets have achieved full maturity and volumes are either stagnating or falling. Margins have been reduced to bare minimum, usually ⸞ 5%. However, In contrast to its dismal financial success, the industry in those economies retains a strong influence and importance on the social front . Besides providing quality employment to millions, it also provides a strong foundation for technological research and development. The industry is therefore crucial to the economic sustainability of economies for it gives impetus to the overall industrial growth.

3. Importance of automotive industry However, In contrast to its dismal financial success, the industry retains a strong influence and importance on the social front. It provides Quality employment to millions, Astrong foundation for technological R&D. economic sustainability, for it gives impetus to the overall industrial growth.

4. Scramble for business in africa With markets in the developed world virtually saturated, major auto dealers are now shifting focus on emerging markets. A good number are rushing to build assembly plants in developing countries This is a marketing strategy to enable them gain foothold and market share in those countries.

5. Vehicle Assembly vs Manufacturing. A vehicle is made up of components or building blocks as shown below.

6. INJECTOR PUMP Vehicle building blocks; components engine transmission Differential Pressed panels

7. Vehicle Assembly vs Manufacturing. First let’s distinguish between the two concepts. In vehicle assembly, there is litle transfer of technology, if any, from the country of origin to the country where assembly takes place. When planning to set up assembly plants in far-flung countries, strategists from countries of origin use deployment processes in such a way that only basic assembly instructions are released to those assembly plants.

8. Vehicle Assembly vs Manufacturing. High-end Information touching on technology and manufacturing process is considered highly classified and always kept under effective wrap. Indigenous people who usually manage and operate assembly lines never get access to such information. Objective driving multi-nationals to set-up assembly plants in far-flung countries is to gain easy access to their markets.

9. Vehicle Assembly vs Manufacturing. Manufacturing on the other hand starts with idea generation from first principles. It’s a process informed by situational (Market) demands vide R&D and design, planning and control of process and product . Effective management of automotive manufacturing industry in a country involves holistic integration of national resources including research institutions, Universities, scholars, college graduates, natural resources etc etc. Such integration can not be effectively sustained in an vehicle assembling as compared to manufacturing.

10. WAY FORWARD TO BOOST AFRICA’S AUTOMOTIVE INDUSTRY

11. Clean Mobility; Common emissions/air pollutants and their sources

12. Motor Vehicle Air Pollutants

13. Health Impacts of Air Pollutants

14. Clean MobilityEnvironmental Effects of Air Pollution/Cont.. Eutrophication – which occurs when high nutrient concentrations in a water body stimulate algae bloom (NOx emissions increases the amount of nitrogen entering water bodies) Haze - the resultant obscuration of visibility when sunlight is blocked by PM resulting in distorted appearance of objects in terms of clarity, colour and form. Acid rain

15. Alternative fuel technologies Flexible Fuel Vehicles (FFVs)have an internal combustion engine and are capable of operating on gasoline and any blend of gasoline and ethanol

16. Alternative fuel technologies

17. LEVERAGING ON STANDARD AND REGULATORY FRAME-WORK TO GROW THE INDUSTRY

18. Standards as a starting point A Standard is document that provides for common and repeated use, rules, guidelines or characteristics for products and services and related processes or production methods, aimed at the achievement of the optimum degree of order in a given context. Formulators of standards should understand economic development needs of the continent and champion development of automotive standards that are responsive to the unique requirements of the continent The standards should also be progressive, providing formidable foundation that will spur vibrant innovation and creativity A restrictive standard will impede innovation

19. Ensure members have requisite expertise and professional background for an effective and implementable standard The committee should have professional Government representation to help align the whole process with the wider national objective of growing the automotive industry Have representation from various stake-holders in the industry, including environmentalists, for the standard to be accepted and supported by the public Standards committees

20. Standards In the long run, the standard should focus on providing formidable platform to advance sustainable growth of technology They should clearly define parameters that will guarantee effectiveness, safety and comfort for users. Besides, the standards should address environmental concerns of Africa to preserve the eco-system

21. Regulatory frame-work Good standards are not an end in themselves. To achieve their intended objective, they have to be supported by well thought-out National Regulatory frame-work. It’s the obligation of Governments champion growth and sustainability of automotive industry in the country

22. Regulatory frame-work – National policies Governments should therefore undertake the following; Develop clear ROAD MAP aimed at achieving automotive manufacturing status through formulation and deployment of prudent and supportive policies. Identify& optimize on competetive advantages available within a country, strongly leveraging on its strengths and opportunities.

23. National Policies Develop National Automotive policies that will guide sustainable growth of automotive industry Identify and develop other policies for supportive industries like steel industry, rubber industry, electronics etc in tandem with automotive policy Develop National Local content policies; these will define terms of engagement with foreign investors and help promote national developmental agenda by nurturing local participation in promoting transfer of technology These policies shall define terms of engagement with forein investors

24. National Policies These policies shall define terms of engagement with foreign investors who use Africa’s assets, resources, markets and people to grow their businesses. The policies will enable Africa engage with development partners on clear quantifiable terms to accelerate transfer of technology. These deliverables should be aligned with the road maps as defined in the automotive policies – complete with timelines and KPI to monitor progress

25. National Policies Through these policies, privileges and incentives extended to foreign companies setting up assembly plants on our continet should be pegged on Clear quantifiable returns ( in this case transfer of technology) The deliverables should be aligned with the road maps as defined in the automotive and local content policies – complete with timelines and KPI to help monitor progresstimelines and KPI to monitor progress These deliverables should be aligned with the road maps as defined in the automotive policies – complete with timelines and KPI to monitor progress

26. Automotive industry is the back born of industrial growth in any economy. A weak automotive industry has dire ramifications downstream, impeding industrial growth in ALL other sectors. A strong automotive industry in Africa will have a multiplier effect downstream It will provide impetus for growth of other industrial sectors

27. THANK YOU