Volkswagen has started assembling cars in Ghana, with capacity to assemble 300,000 a year. In May 2020, Ghana (where used cars make up 70% of vehicle imports) banned the importation of cars older than 10 years to encourage international companies to set up local plants and boost local manufacturing. Enhanced by an AfCFTA framework, Ghana could become an automotive hub for West Africa. Meanwhile Nigeria’s automotive policy, which could allow for the same, remains unsigned into law. Overall, SSA holds a potential market of 3-4mn new cars, partly dependent on African government regulation and price competitiveness via tax tariffs.
High value skills development and talent repatriation
To mark this year’s Nigeria Diaspora Day, observed on July 25, Nigeria’s President Buhari has challenged his diaspora to not abandon their country, but to be active in post-Covid-19 economic recovery efforts. Nigerian diasporans annual remittances exceed $25bn - approximately 6% of GDP. However, the number of Nigerian diasporans is unknown, with estimates ranging from 1.2mn (the official 2017 record), to 17mn. With Nigeria’s diasporans likely to be mostly semi-skilled, skilled and highly skilled professionals, Nigeria could be doing more to engage with its talent abroad beyond remittances.
Effective internal and regional security, and foreign policy