THE EFFECTS OF SECOND HAND CARS ON THE AFRICAN ECONOMY

Africa is the biggest consumer of second-hand cars in the world. Over 80% of car sales on the continent are used cars,

THE EFFECTS OF SECOND HAND CARS ON THE AFRICAN ECONOMY

Africa is the biggest consumer of second-hand cars in the world. Over 80% of car sales on the continent are used cars, and in some regions, like East Africa, 96% of imported cars are second-hand. Demand for used cars in many African countries is soaring due to a growing African middle class and increasing levels of disposable incomes. There is one big problem, in fact a major pain-point, that these car owners face which presents a huge opportunity for you to wrap this tech-startup around and scale it to the unicorn club.

These used cars fall within the age bracket that requires frequent visits to the mechanic for repairs. They have also created a huge demand for motor vehicle spare parts on the continent. Most mechanics in Africa do not undergo a formal schooling system to learn their trade but will still go ahead to set up their garage workshops even when they have limited knowledge about repairing cars. Just ask any car owner in Africa and they will narrate to you tales of the nightmares they have undergone at the hands of rogue mechanics.

First, most have no sound knowledge of car systems and have zero troubleshooting skills. Your car may be having a minor malfunction, but they will tamper with its system resulting in further damages that will cost you a heftier bill. Then there are those unethical ones. If you leave your car with them at the garage, they will go behind your back and extract your functioning, genuine, manufacturer installed parts and replace them with non-genuine parts. They will sell your parts to fetch themselves more income.

So the current situation is that, it is not advisable to drive your car into just any other garage you come across by the roadside. Some of the tales are so horrifying that car owners have had to adapt to this reality and would rather circuit to the other end of town to a mechanic they have established some trust in and wait to be served no matter how long the queue is. The challenge of sourcing for genuine spare parts only adds to the pain these car owners are already experiencing.

These on its own is a deficit on the African economy and has been returning huge dividends to the aerofan and European manufacturers of these automobile makers beyond the shores of the continent. The fact that non of this products are made in Africa despite it huge market and financial budgets in it, african countries remain in the loosing side despite huge dividends invested in the automobile industry.