Africa has a unique opportunity to lead the next wave of industrial growth, and it's not just a dream. From electric vehicles (EVs) to lithium batteries, the African Continental Free Trade Area (AfCFTA) is already laying the groundwork for of regional value chains that could redefine how we produce, trade, and drive.
South Africa is getting ready. So are Morocco, Rwanda, Kenya, Zambia, the DRC, each bringing something to the table. But turning opportunity into reality will depend on how effectively we coordinate industrial policy, unlock supply chains, and promote meaningful investment across borders.
Let's zoom in.
AfCFTA: A Trade Deal with Teeth
The AfCFTA, launched in 2021, is Africa's most ambitious trade project to date. Beyond reducing tariffs, it aims to integrate economies, boost intra-African trade, and create a common market of 1.4 billion people.
It's not just about trade in goods and services. The adoption of protocols on Investment, Competition Policy and Intellectual Property Rights in 2023, and ongoing work on the Dispute Resolution Protocol (read more), show the intent: to create a rules-based trade system that supports industrial development, not just trade flows.
Lithium, Supply Chains & a “Made in Africa" Label
Africa holds more than half the world's reserves of cobalt and manganese and a significant share of lithium, all essential for EV batteries. The continent is also home to emerging industrial hubs. Take the Zambia–DRC battery corridor, for example. Or Morocco, positioning itself as Europe's EV assembly partner. Or South Africa, where an established auto industry meets energy reform.
The vision? An African hub-and-spoke model, where different countries specialise in different parts of the EV value chain. For instance, Ghana or Ivory Coast assembling. South Africa supplying lithium-ion batteries. East Africa focusing on two-wheelers. All under a “Made in Africa" label, supported by AfCFTA's Rules of Origin (explained here).
This isn't abstract. South Africa's Section 12V tax incentive, signed into law in December 2024, offers a 150% deduction for local manufacturers of EV parts, effective 1 March 2026. It's a signal: industrial policy and trade are finally talking to each other.
E-Mobility Policies Across the Continent
Governments are moving.
-
Kenya released its first draft e-mobility policy in 2024, following the creation of an E-Mobility Taskforce.
-
Rwanda has revised its tax regime to encourage EV imports and hybrids.
-
South Africa is positioning for EV manufacturing at scale, with support for special economic zones and green transport corridors.
E-mobility is not one-size-fits-all. Two- and three-wheelers may make more sense in densely populated regions and last mile delivery. Others may specialise in freight or urban buses. The key is co-ordination and recognising that industrial development and trade reform must move together.
Trade, Disputes & the Need for Smart Infrastructure
Trade doesn't happen on paper. It needs ports, corridors, and agreements that can flex when friction arises.
AfCFTA's dispute resolution mechanisms, especially those linked to trade remedies, will be key to building trust and managing divergence. For a deep dive,
read this.
If we get this right, we'll not only create jobs and attract investment, but also boost our environmental, social and governance (ESG) profile (see how ESG and AfCFTA align)
A Moment for Africa to Lead
The stars are aligning: political will, continental ambition, climate urgency and a global push for new supply chains. We shouldn't wait.
As South Africa begins trading under AfCFTA (see announcement) and ramps up EV readiness (read more), we're not just responding to a policy shift, we're writing the next chapter of African-led growth.
Let's make it count.
