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. Chilombo Priscila from the Namibia Investment Promotion and Development Board (NIPDB) presented on the Productivity Task Force (PTF) concept, which Namibia adopted following recommendations from a Harvard Growth Lab study as a strategy to drive economic diversification. She explained that “PTFs are public–private working groups established to identify, prioritise, and resolve sector-specific bottlenecks impeding productivity. These are sanctioned by two Cabinet Committees, supported by the Ministry of Finance, and endorsed by the respective line Ministers, who serve as political champions to advance constraint resolution at higher levels of government”.
She further noted that, in addition to the Vehicle Component Manufacturing (VCM) PTF, which addresses operational challenges within the automotive sector, Namibia has also established a National Technical Working Group (TWG) on Automotive and Mineral Beneficiation. The TWG functions as a strategic body that elevates outputs from industry and the VCM PTF to regional platforms, positioning Namibia as a credible partner within SACU, SADC, AfCFTA, and beyond. According to Ms. Priscila, the two initiatives collectively ensure that Namibia’s automotive sector becomes locally productive while remaining regionally and globally competitive - and ultimately transitioning the country from being primarily an automotive importer to becoming an emerging regional manufacturer of components.
In terms of supporting legal frameworks, she added that Namibia has recently introduced a National Sustainable Special Economic Zones Policy and a Mineral Beneficiation Strategy. Together they are set to add value to mineral resources and boost the country’s automotive sector. Once fully implemented, these frameworks will enable Namibia to demonstrate the role of critical raw materials and renewable energy through Special Economic Zones, serving as a model for productive, sustainable, and energy-driven industrial development.
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:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org