Windhoek, Namibia, 5 September 2025 (ECA) - The United Nations Economic Commission for Africa, Sub Regional Office for Southern Africa (ECA SRO SA) organised a virtual workshop on 2nd September 2025 to review and validate the draft automotive policy framework for Namibia and Lesotho leveraging feedback from stakeholders on the findings and recommendations of the assessment report presented by the ECA consultant.
Ms. Olayinka Bandele, ECA SRO-SA Chief Inclusive Industrialization Section in her opening remarks emphasised the potential of the automotive sectors in both countries noting that while the automotive sectors of Lesotho and Namibia differ, with Lesotho focusing on labour-intensive component manufacturing and Namibia having a nascent motor assembly sector, both countries’ automotive sectors revolve around their primary and secondary industry players. Lesotho aims to attract investment for second and third-tier producers, while Namibia's strength lies more in retail and aftermarket services, facing constraints in establishing large-scale domestic assembly operations.
She highlighted that ECA is playing a key role in developing Namibia and Lesotho's automotive sectors by facilitating the integration of these countries into the regional automotive value chain. She further stressed that ECA and its partners’ support should be coupled with building local production capabilities to meet domestic demand for affordable, modern vehicles; fostering skill development and moving towards, “the global trend of electric vehicles which presents both a challenge and an opportunity to develop new energy vehicle production, supporting climate goals and modernizing the continent's automotive sector”.
Mme Teboho Tsekoa, Director Business Development, Lesotho Ministry of Trade, Industry and Business Development applauded the automotive policy framework initiated by ECA, which will help Lesotho’s integration into the automotive regional value chain giving the country a comparative advantage to develop the sector. She highlighted that, “the Automotive Industry in Lesotho is an emerging sector, with the country possessing the potential to integrate into the regional automotive value chains, considering its strategic location within South Africa the most integrated country in the regional value chain of the automotive sector and the highest exporter in Southern Africa”.
Ms. Priscila Chilombo, Namibia Investment Promotion and Development Board (NIPDB) presented the countries’ strategy to develop the automotive industry through a productivity task force under the auspices of the Ministry of Finance, which aims to boost the industry and create employment. She stated that the task force comprises the public and private sector who analyses the gaps in the automotive industry and propose concrete solutions to attract investment and make the market environment conducive.
She added that Namibia has recently introduced a National Sustainable Special Economic Zones Policy, a Mineral Beneficiation Strategy and a National Automotive Production and Development Policy, all which impact on the automotive sector. Once successfully implemented, “this will provide an opportunity for the country to showcase the role of critical raw materials and renewable energy through Special Economic Zones and will also serve as a prime example of new productive development options within the framework of sustainability and an energy transition for Namibia”.
Mr. Rodney Dan-Ao Hoaeb ECA Consultant, presented the Policy Framework, saying, “ the development of a Policy Framework is crucial for Namibia and Lesotho’s integration into the regional automotive value chains, as it provides a roadmap for industry collaboration, defines strategic priorities, evaluates partnership opportunities and refines regulations to create a conducive environment for growth. The framework also clarifies the purpose and scope of work, increases understanding of regional initiatives, and fosters ownership among stakeholders. At a regional level, the Southern African Customs Union (SACU), the Southern African Development Community (SADC), European Union Economic Partnership Agreement (EPA), and the AfCFTA present growth opportunities for both Namibia and Lesotho”.
Issued by:
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Economic Commission for Africa
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