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New white paper outlines the growth of the Ivory Coast and Ghana auto aftermarkets

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  Huge Potential For Two African Countries Aftermarket Suppliers As Vehicle Imports Spare Parts Soar Report from German consultancy firm Africon indicates high demand from the US Europe or the United Arab Emirates host of Automechanika Dubai www AutomechanikaDubai com 2022 Download document https bit ly 3AmaO3M A new document A white paper written by Africon the German consulting firm that supports companies from around the world with business expansion in Africa has outlined key information on the Ghanaian and Ivory Coast automotive markets Among the data are details on the increase in imported vehicles as well as a growing aftermarket in the two countries making the pair increasingly important in the African auto aftermarket in the future The paper highlighted that while Ghana and Ivory Coast are smaller markets than African heavyweights like Egypt Nigeria and South Africa they have huge potential Total vehicle imports into both countries have soared over the past six years with the value of light vehicles in C te d Ivoire more than doubling and heavy vehicles almost doubling since 2016 In Ghana growth has been a little slower but the figures are still impressive with an average of 11 per cent and 10 per cent per year for light and heavy vehicles respectively For both countries most of the total supply came from the US the United Arab Emirates and Europe Similarly in C te d Ivoire despite the economic impact of the COVID 19 pandemic the country s new light vehicle market growth in recent years has been relatively strong with volume increasing from 7 500 in 2012 to more than 10 000 units relatively steadily in recent years years In total there are around 800 000 vehicles on the country s roads excluding trailers and two and three wheelers while Ghana is home to approximately 1 2 million Spare parts markets are growing equally for both countries reads the white paper While Ghana s parts market is roughly double that of its French speaking neighbor C te d Ivoire has quickly caught up with annual growth in imported parts rising nearly 20 percent between 2015 and 2021 In Ghana growth is only 10 percent per year over the same period Africon believes that with the growth in market size the two countries are likely to become the focus of parts manufacturers while the localization of distribution infrastructure is likely to increase As it stands both Ghana and C te d Ivoire have a very similar distribution structure with global parts manufacturers supplying through international trading companies often based in the UAE or the EU E commerce has so far played a rather limited role in both countries the document states Foreign online platforms are sometimes used to import parts especially due to increased reliance on foreign sources For resale within countries the vast majority of buyers prefer to see and touch the products before ordering Furthermore the logistical challenges to enable reliable e commerce systems have yet to be resolved However many stakeholders believe in future solutions to these challenges and are increasingly interested in exploring opportunities in the digital space in Africa Although so far only a few global parts manufacturers have their own staff and structures in the region they should and will get closer to their customers in this regard the document continues The importance of e commerce parts sales and other digital automotive services repair and service insurance ride sharing etc may well increase to significantly increase convenience for local drivers and vehicle owners To secure a foothold in these promising future markets local and global companies must take advantage of early adopters Africon with representations in C te d Ivoire Ethiopia Ghana Kenya Nigeria South Africa and Tanzania will attend this year s annual Automechanika Dubai trade show from November 22 24 at Dubai World Trade Center in the United Arab Emirates Despite the challenges of COVID 19 last year s event brought together 20 574 visitors from 129 countries 578 exhibitors from 47 countries and 12 official country pavilions to reconnect and engage in serious business talks sign new deals explore new partnerships and stay updated on the latest market trends The fair s organizer Messe Frankfurt Middle East expects more than 750 exhibitors this year a healthy 30 percent year on year increase and similar visitor growth is anticipated as international travel restrictions continue to ease
New white paper outlines the growth of the Ivory Coast and Ghana auto aftermarkets

1 ‘Huge Potential’ For Two African Countries’ Aftermarket Suppliers’ As Vehicle Imports, Spare Parts ‘Soar’; Report from German consultancy firm Africon indicates high demand from the US, Europe or the United Arab Emirates: host of Automechanika Dubai (www.AutomechanikaDubai.com) 2022 Download document: https://bit.ly/3AmaO3M A new document A white paper written by Africon, the German consulting firm that supports companies from around the world with business expansion in Africa, has outlined key information on the Ghanaian and Ivory Coast automotive markets.

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2 Among the data are details on the increase in imported vehicles, as well as a growing aftermarket in the two countries, making the pair increasingly important in the African auto aftermarket in the future.

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3 The paper highlighted that while Ghana and Ivory Coast are smaller markets than African heavyweights like Egypt, Nigeria and South Africa, they have huge potential.

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4 Total vehicle imports into both countries have soared over the past six years, with the value of light vehicles in Côte d’Ivoire more than doubling and heavy vehicles almost doubling since 2016.

5 In Ghana, growth has been a little slower, but the figures are still impressive with an average of 11 per cent and 10 per cent per year for light and heavy vehicles respectively.

6 For both countries, most of the total supply came from the US, the United Arab Emirates and Europe.

7 Similarly, in Côte d’Ivoire, despite the economic impact of the COVID-19 pandemic, the country’s new light vehicle market growth in recent years has been relatively strong, with volume increasing from 7,500 in 2012 to more than 10,000 units relatively steadily in recent years.

8 years.

9 In total, there are around 800,000 vehicles on the country’s roads (excluding trailers and two- and three-wheelers), while Ghana is home to approximately 1.2 million.

10 “Spare parts markets are growing equally for both countries,” reads the white paper.

11 “While Ghana’s parts market is roughly double that of its French-speaking neighbor, Côte d’Ivoire has quickly caught up with annual growth in imported parts rising nearly 20 percent between 2015 and 2021.

12 In Ghana , growth is ‘only’ 10 percent per year over the same period.” Africon believes that with the growth in market size, the two countries are likely to become the focus of parts manufacturers, while the localization of distribution infrastructure is likely to increase.

13 As it stands, both Ghana and Côte d’Ivoire have a very similar distribution structure, with global parts manufacturers supplying through international trading companies often based in the UAE or the EU.

14 E-commerce has so far played a rather limited role in both countries, the document states.

15 Foreign online platforms are sometimes used to import parts, especially due to increased reliance on foreign sources.

16 For resale within countries, the vast majority of buyers prefer to “see and touch” the products before ordering.

17 Furthermore, the logistical challenges to enable reliable e-commerce systems have yet to be resolved.

18 However, many stakeholders believe in future solutions to these challenges and are increasingly interested in exploring opportunities in the digital space in Africa.

19 “Although so far only a few global parts manufacturers have their own staff and structures in the region, they should and will get closer to their customers in this regard,” the document continues.

20 “The importance of e-commerce parts sales and other digital automotive services (repair and service, insurance, ride-sharing, etc.) may well increase to significantly increase convenience for local drivers and vehicle owners.

21 To secure a foothold in these promising future markets, local and global companies must take advantage of early adopters.” Africon, with representations in Côte d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, South Africa and Tanzania, will attend this year’s annual Automechanika Dubai trade show from November 22-24 at Dubai World Trade Center in the United Arab Emirates.

22 Despite the challenges of COVID-19, last year’s event brought together 20,574 visitors from 129 countries, 578 exhibitors from 47 countries and 12 official country pavilions to reconnect and engage in serious business talks, sign new deals, explore new partnerships and stay updated.

23 on the latest market trends.

24 The fair’s organizer, Messe Frankfurt Middle East, expects more than 750 exhibitors this year, a healthy 30 percent year-on-year increase, and similar visitor growth is anticipated as international travel restrictions continue to ease.

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