Africa – and most of the developing world – isn’t the first place that comes to mind when vehicle manufacture is mentioned. However, developing as this world is, there are a few vehicle manufacturers in the business of making cars here. These brave enterprising spirits, however, face several daunting challenges – and these challenges are by no means lean.
Tackled off, the vehicle manufacturing industry in the developing world will certainly take off – relying less on the developed world for auto needs and generally, mobility.
The challenge, however, remains when and if these bottlenecks will EVER be resolved, seeing that some of them are self-inflicted.
So, what are the challenges of car manufacturing in the developing world? It turns out there are many: much more than you’d expect.
Article Outline
Chronic Lack of Power
Modern machinery needed for the manufacture of automobiles all rely on power – at least for a chunk of them. Consistent, uninterrupted power, that is.
Unfortunately, most of the developing world is so comfortable with power cuts and rations that it doesn’t make sense even thinking of using such power for industrial purposes.
In Nigeria for instance, the National Grid collapsed at least 12 times in 2024 alone – ushering in bouts of nationwide blackouts every time this happened.
Now, here’s the curious thing: the National Grid didn’t ‘collapse’ because of any natural phenomenon nor was it due to an upgrade (gone wrong, maybe).
It collapsed simply because, well, it ‘wanted’ to collapse (or was due for ‘some collapse). North of 500 million folks and billions of businesses were put in darkness for no justifiable reason, just like that.
…all 12 times this happened, in the past year alone!
And, when this happened, all twelve times of it, no one resigned and there was no uproar – it was simply ‘business as usual’, dosed with an unhealthy hope that things would be better soon.
The alternative (generating power) remains prohibitively expensive, especially for industrial use and even for concerns that can afford it, will eat deep into profits and negatively affect the cost of the finished product, making it generally unaffordable in the market.
Defeat – right at the idea stage. Unfortunately, most regions of the developing world playing around with vehicle manufacture don’t exactly fare any better with power production and its consistency.
For instance, Ghanaians coined the term ‘dumsor’ (translating to ‘on and off’) in 2013 to express their frustrations at the country’s erratic power supply and the inconsistent voltage that plagues the nation even when power is restored.
To this day, more than a decade later, the situation remains unsorted.
Trust Issues
Trust is a very fundamental part of business and once it leaves a situation (or is absent from it), all is doomed and lost.
Online and off, citizens of the developing world give a plethora of reasons why they choose not to patronize vehicles made locally. However, these are just what they are: excuses. The real reason remains simple and straight to the point – they don’t trust local automakers.
Trust is the fundamental reason why car design, competitive pricing, PR, and all the other trivial issues alluded to are adduced in the first place.
Lack of trust is also the reason why, despite the complaining citizens alluding to poor car designs, competitive pricing, and bad PR as reasons for not buying when in reality, the cars made locally are of okay designs, cheaper, and importantly, possess okay PR at the company level.
Trust remains the major issue lawmakers in Nigeria also chose foreign-made SUVs over locally manufactured ones. In the words of Senator Karimi: “…today, we decided for [sic] Toyota because Toyota has a name [sic] and a longstanding name [sic] for quality and durability…As our local manufacturing companies develop, we are going to [sic] patronize them.”
Does more need to be said here?
Non Patriotic Governments
If the citizens of the developing world are doubtful of the quality of vehicles coming from their own country and as a result don’t trust locally manufactured vehicles, it is only because they’re learning very well from their governments…
…or, it’s a case of their governments being made out of the ordinary stock that is the citizenry.
This is how it pans out: despite the many locally manufactured car brands in Nigeria, including Innoson and Nord, the Nigerian president gets ferried around in a Cadillac – an American marque. His predecessor used a Mercedes Maybach S600, made in faraway Germany.
The choice of a presidential ride contrasting sharply with what local manufacturers offer is well documented in the developing world, even if/when such presidents offer lip service to their countrymen to buy local.
For instance, the Ugandan president gets ferried around in a Land Cruiser, a Japanese marque even when his own country has a plant and manufactures cars: Kiira Motors.
The great irony? Kiiara Motors isn’t a privately held or owned concern: it’s a state enterprise with its primary objective to champion the ‘development of the domestic automotive value chain…’
What bigger irony can there be?
However, it gets more interesting. In Ghana, there’s Kantanka which designs and assembles vehicles locally. There’s an array of options to choose from from this manufacturer ranging from Sedans to SUVs and everything else in between.
But, curiously, what’s the official vehicle of the Ghanaian president? A 7 Series BMW – a German Marque! The official vehicle his predecessor in office used? Again, a Toyota Land Cruiser!
This reality of presidents of developing countries contrasts sharply with what presidents of developed countries adopt. For instance, the US president uses a locally custom-built Cadillac, known as ‘The Beast’. Same with the British Prime Minister, The German Chancellor, etc. The latter uses an S Klasse Mercedes and the former, a Jaguar XJ.
Somehow, to be taken seriously, you have to practice what you preach…at least, while in public!
Inconsistent Government Policies
When I declared that I wouldn’t be converting my V6 to CNG, it was, in part, due to the highly inconsistent government policies, prioritizing nothing except what serves the politicians at the moment.
To put this into perspective, while the Nigerian government is eager to preach the gospel of gasoline engine conversion to run on CNG as an ‘escape’ from the ever-rising gasoline costs, the same government is eagerly buying gas-guzzling Land Cruisers for its legislators!
What irony and inconsistency, policy-wise is greater than this?
Nigeria is not the only developing country in this mess. Ugandan politicians, despite the verbal commitment to renewable energy and electric cars plus the actual floating of the Kiira Motor Cooperation by the government to ‘actualize’ this dream, largely still drive gasoline-powered vehicles, funded by the government.
This, if anything, is a classic case of shooting oneself directly in the foot and then, turning back and bitterly complaining of the injury.
Poverty
Finally, the elephant in the room: poverty.
This is something many folks don’t like talking about but the truth is glaring: with an extremely poor per-capita GDP and absence of credit, the developing world isn’t ready for new cars yet, even if/when these cars are made locally.
The few folks who can afford these vehicles, brand new when made locally, aren’t interested in buying or driving locally made – as I’ve shown with the Nigerian, Ugandan, and Ghanaian examples.
It’s a doubly closed end for the automakers serving the developing world: the folks who can afford their products aren’t interested and those who don’t mind, can’t afford them.
Does anything ever get worse than this ‘double jeopardy’?
Will the Developing World Ever Overcome These Challenges?
Yes – and no.
Yes, in the sense that once developing nations realize their challenges and their unique position amongst developed nations, it’s only a matter of time before things take a turn for the better, assuming there’s the political will to do so.
No, because, from every indication, the bulk of the developing world isn’t ready and unfortunately, no one is coming to save anyone.