Partnerships create prospects – for development cooperation and the economy

German development cooperation is aligning itself more closely to Germany’s interests. The partnership between the German Association of the Automotive Industry (VDA) and the African Association of Automotive Manufacturers (AAAM) proves that development policy objectives and the promotion of German economic interests are not mutually exclusive.  

Creating added value locally

Africa has vast reserves of raw materials and enormous industrial potential. However, a large proportion of value creation has so far taken place outside the continent. This is precisely where the partnership between the German Association of the Automotive Industry (VDA) and the African Association of Automotive Manufacturers (AAAM) comes in. The focus is on establishing a strong pan-African industry association that can represent the interests of its members effectively. Together, the VDA and AAAM are developing services for companies, establishing a professional membership management system and strengthening the association’s financial independence. At the same time, the project is supporting AAAM in advising African Governments on developing modern industrial and automotive strategies, establishing common standards for electromobility and charging infrastructures and driving the expansion of regional supply chains. Events such as IAA Africa Day, the Automotive Forum at the Intra-African Trade Fair and expert dialogues with policymakers and industry representatives bring together companies, investors and governments and lay the foundations for investment and new jobs.  

Opportunities for Africa – and for Germany

Both sides stand to benefit from the strengthening of the African association. New production sites, local suppliers and a skilled workforce create employment and added value in Africa. At the same time, new sales markets, resilient supply chains and long-term investment prospects are opening up for German companies. African partners and their raw materials are becoming more and more strategically important, particularly for the transformation of the automotive industry and the ramp-up of electromobility. Africa is clearly a market of the future for the German automotive industry and a partner in the realignment of global value chains. 

Added value through a systemic approach

What sets this project apart is that it does not support individual companies, but instead improves the general economic conditions for an entire sector in Africa. A strong trade association, common standards, a reliable industrial policy and regional networks create the conditions from which African companies and German manufacturers and suppliers alike benefit. This ensures sustainable value creation on both sides – an approach that exemplifies the new direction of German development cooperation.