(Ecofin Agency) - Japan’s car manufacturer Nissan says it wants to strengthen its footprint in Africa with the opening of a new regional business unit for the continent. The announcement was made yesterday in an official statement.

The strategy is designed to centralize the company’s African operations through a single unit, which is set to be headed by Mike Whitfield, the former director for Nissan’s units in South Africa and Egypt. Thanks to this move, the company hopes to boost its production capacity and better serve the continent.

Seen as one of the world's largest underserved markets for new automobiles, Africa has attracted many automotive companies in recent years that have announced huge investments to take advantage of the continent's strong economic growth performance.

According to statistics, the continent only accounts for about 1% of global new car sales, while its population and middle class are swelling. Big firms such as Nissan, Volkswagen, or Toyota are therefore seeking to position themselves well in the continent to take better advantage of its promising economic prospects, strengthened in particular by the African Economic Free Trade Area.

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

Let’s note that Nissan is already present in Egypt, Nigeria, and South Africa. The latter is the operational center of the company’s sub-Saharan regional business unit. 

Moutiou Adjibi Nourou