auto executives acknowledge the challenges but point to a famous precedent johannesburgnairobi at the edge of nairobis ngong forest thousands of used cars glitter in the hot sun on a dusty field waiting for buyers imported from japan or the middle east they offer an affordable route to vehicle ownership in kenya and have dominated the market for decades that is an obstacle big carmakers must overcome if they are to crack africa a market promising rapid growth as trade tensions threaten sales elsewhere african consumers also still need conventional engines just as demand in more traditional markets is curbed by restrictions on carbon emissions advt volkswagen bmw toyota nissan and others have joined forces to lobby governments for steps that would reduce the imports that have made subsaharan africa notoriously difficult terrain and allow local production to flourish the question on africa isnt is it a market of the future mike whitfield nissans top executive for africa told reuters its a case of when four years after forming the association of african automotive manufacturers aaam their efforts are starting to bear fruit carmakers that set up local assembly plants could get tax holidays of up to 10 years and duty exemptions in nigeria kenya and ghana according to government plans seen by reuters thomas schaefer who heads volkswagens africa business said there is a potential market in subsaharan africa for 3 to 4 million new cars up from just 420000 in 2017 but that will require addressing the wellentrenched interests of secondhand car dealers smugglers and lowering the price of new cars it will largely depend on how successful the african governments are in limiting the amounts of secondhand imports and how pricecompetitive new vehicles can be with their tariffs said craig parker africa research director at frost sullivan a usbased market research firm multiplying effects advt africas population and household incomes are rising rapidly but its 1 billion inhabitants account for only 1 percent of the worlds new passenger car sales industry data shows south africans bought over 85 percent of those vehicles the aaam identified kenya nigeria and ghana as potential manufacturing hubs and helped draft legislation setting up standards and incentives details of governments plans provided to reuters demonstrate that african nations are keen to secure a spot as a beachhead for the industry nigeria and ghana are preparing to offer automakers tax holidays of up to 10 years and dutyfree imports of parts and components used in local assembly nigeria also plans to double the levy on new fullybuilt imported vehicles to 70 percent to boost demand for locally produced cars though the policys approval has been delayed in kenya automakers will pay no import or excise duties and get a 50percent corporate tax break for african nations facing massive demographic pressures such concessions make sense if they create jobs said jelani aliyu of nigerias national automotive design and development council the multiplying effects are exponential said aliyu who foresees supporting industries developing around