According to specialists, the automobile sector may use the free trade area of the African continent to rid the region of its reputation as a "dumping ground" for unwanted cars. Right now, secondhand cars make up 77% of the car requirements annually, corresponding to the Chief Executive. The extended-term effects are rather grim, with the EAC having a $2.8 billion annual trade imbalance in only the car sector. "The industry is too small for a local production to be profitable, and we are swamped with used, outdated cars.

Strong local and international demand are both necessary for having a good manufacturing capacity, according to Kamuhinda. He claimed that although India and part of Africa have the same GDP, India produces millions of automobiles annually compared to Africa's production. "The distinction solely is due to India's coordinated market and unified external tariff. The Executive stated that they are collaborating intimately with the Commercial organization of African vehicle Automakers to establish expanding global, whereby there's one hub in Africa and produce one prototype of vehicles.

West Africa will have another hub and produce a different type of prototype. The goal, according to him, is to sell enough cars in the region. When asked if Africa could produce its cars. Rwanda has implemented a series of subsidies that will apply to electric vehicles, with a 12% automotive growth rate. By 2030, 40% of new car sales in China, the world's largest auto market, must be electric. The legislature of the EU recently declared that gasoline-powered cars will be phased out by 2035.

The industry will change in upcoming years, and no one will finance a facility that requires many years to pay off due to outdated technology, according to kamuhinda. Among them is the exclusion of importation and income duties on accessories, batteries, spare parts, and infrastructure for charging stations. Another incentive offered for electric automobiles and accessories is zero-rated tax.

Although Akagera Motors Rwanda offers fusion electric and conventional combustion automobiles, the desire is more for gasoline engines, according to Roopak Gorajia, Sales and Marketing Director. According to Gromyko, the hefty cost of repairs and replacement parts is a barrier to the adoption of e-mobility but shouldn't be a significant concern considering the benefits e-mobility provides for the environment and the fact that it's the prospect of transportation. He claims that without a "smart city," you cannot put modern autos on the road.

Africa will be stranded if it doesn't construct intelligent cities during the upcoming period when those vehicles will be the bulk. It will be inefficacious to bring in E-Tron vehicles, and combustion vehicles will become increasingly limited and costly.