Categories: Business

UAE bolsters Africa’s expanding automotive industry

DUBAI- The trade relationship with the African continent and the UAE is continuing to boom, with lucrative opportunities in the automotive industry a key component of that bond, according to Asad Badami, the managing director of a leading UAE-based automotive aftermarket global distributor.

805909f952cea82c_org805909f952cea82c_orgFollowing a meeting between a delegation from Uganda, headed by the Prime Minister of Buganda – a subnational kingdom in Uganda’s Central Region – and Badami, the Dubai based global distributor affirmed the opportunities coming out of the relations that companies like A-MAP can leverage, particularly in the automotive industry.

“While North and South African automotive markets are thriving, the lack of a mature automotive manufacturing industry within East and West Africa means that companies like A-MAP play a pivotal role in keeping the continent moving. With the surge in automotive demand across Africa, the spare part sector of the automotive industry is equally important,” Badami said.

“Uganda remains as one of the most attractive destinations in Africa, due to its fast economic growth over the last few years, despite the global financial crisis, as well as its liberal external trade policy. We are delighted to welcome the delegation from Uganda, and honoured to host the Prime Minister of Buganda, His Highness Charles Peter Mayiga,” Badami continued.

Uganda’s economy has seen stable growth over the past few years, averaging 6% per annum and with expectations of reaching 7% for the period of 2015-2017, according to a report from the Dubai Chamber of Commerce. As in other

The same report lists motor vehicles as the third major import product globally, accounting for around 5% of total imports, or around USD 244.4 million in 2011.

Uganda’s automotive industry’s growth, as in other countries in the region, has been spurred by a healthy construction sector, which has generated demand for trucks and heavy vehicles, according to Badami.

 Mr. Asad Badami with Charles Peter Mayiga Mr. Asad Badami with Charles Peter Mayiga
Asad Badami with Charles Peter Mayiga

The Dubai Chamber recently reported that nearly 10% of Uganda’s total imports originate from the UAE, with vehicle parts and accessories reaching approximately USD 5.6 million in 2011.

“As one of the largest suppliers of goods and services to Uganda, the United Arab Emirates is clearly a favoured trade partner. Companies are continuing to seek regional partnerships with well-known, trusted suppliers like A-MAP who have a reputation globally for world-class operations,” said His Highness Charles Peter Mayiga, Prime Minister of the Buganda Kingdom.

Uganda’s economic performance has not gone unnoticed by other sectors in the UAE, with Etihad Cargo, the freight business of UAE flag carrier Etihad Airways, recently announcing a new weekly flight between Abu Dhabi and Entebbe. Emirates Airlines also reported an overwhelming increase in traffic on its Dubai-Entebbe sector, which provided yet another strong indicator of growing trade relations between the two countries.

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