Nissan to set up a new business unit for Africa as it reorganizes operations

Nissan Motor is to set up a new regional business unit for Africa as it looks forward to boosting manufacturing capacity in the region.

The move marks a reorganization of the automaker’s disparate operations on the continent, bringing them within one entity headed by Mike Whitfield, who has also served as managing director of the automaker’s units in South Africa and Egypt.

“Beyond internal operating enhancements, this also positions Nissan to focus on the massive opportunity that Africa presents to the organization globally,” the automaker said.

While the Sub-Saharan African population and household incomes are increasing, its 1 billion inhabitants account for only 1% of the new passenger car sales globally.

Most automakers have focused on manufacturing and sales in South Africa which accounts for 85% of new car purchases in the continent.

Nissan, together with rival automakers such as Volkswagen, BMW, and Toyota, have been lobbying African governments to grant conditions that favor regional assembly and manufacturing while curbing imports of cheap used vehicles.

Automakers are also hoping to take benefit of the African Continental Free Trade Area, which is expected to come into force in early 2021 and will decrease tariffs and ease the flow of goods between its member states.