AAAM Welcomes Major Step Toward an Integrated Automotive Market Under AfCFTA

The African Association of Automotive Manufacturers (AAAM) has welcomed the landmark decision of the 39^th Ordinary Session of the Assembly of the African Union Heads of State and Government to approve the Rules of Origin (RoO) for automotive products under the African Continental Free Trade Area (AfCFTA) Framework, noting that the decision is a defining milestone toward creating a unified and globally competitive African automotive market.

This decision has now been formally approved by the Heads of State and Government, in Addis Ababa, Ethiopia on 14 and 15 of February, 2026. This long-awaited decision lays the foundation for duty-free and quota-free trade in automotive products across the continent.

Under the new framework, vehicles and components must now contain a minimum of 40% African (originating) content, allowing up to 60% imported (non-originating) materials to qualify as “Made in Africa” for AfCFTA trade preferences .

The Council adopted this 60% Value of Non-Originating Materials (VNOM) ceiling subject to review after five years, recognising it as an interim measure to stimulate localisation and build industrial capacity across Africa.

“This is a historic breakthrough for Africa’s automotive sector,” says Victoria Backhaus-Jerling, Chief Executive Officer of AAAM. “For the first time, we have a harmonised rule that defines what it means to be ‘Made in Africa’. This will unlock investment confidence, strengthen regional supply chains and drive industrialisation in line with the ambitions of the AfCFTA Automotive Strategy.”

Now that the decision has been approved, the framework will enable duty-preferential trade for countries that have classified their automotive tariff lines under Category A (immediate liberalisation) or Category B (phased liberalisation).

His Excellency Wamkele Mene, Secretary-General of the AfCFTA Secretariat, stated that “the approval of the Rules of Origin for the Automotive Sector provides  legal certainty for the industry to invest in local manufacturing of automotive products and trade under the AfCFTA.

We call on the private sector to take advantage of this development and work with all the partners to drive inclusive growth and development of the African Automotive Industry”.

AAAM has played an instrumental role in the process, working in close partnership with the AfCFTA Secretariat, Afreximbank and African governments to ensure that the automotive RoO supports the development of regional value chains, industrial investment and employment creation across the continent.

“This achievement is a testament to collaboration between public and private sectors,” adds Martina Biene, President of AAAM. “It creates the framework for African countries to trade vehicles and components with each other more competitively, and to position Africa as a meaningful player in the global automotive industry.”

The adoption of the Rules of Origin represents a critical milestone toward establishing a pan-African automotive ecosystem, driving localisation, boosting investment and enabling African consumers to access more affordable vehicles built by Africans for Africa.