Sub-Saharan Africa Commercial Vehicle Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Sub-Saharan Africa Commercial Vehicle Market (2025-2030)

The Sub-Saharan Africa Commercial Vehicle Market size was valued at around USD 15.19 billion in 2024 and is projected to reach USD 23.88 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 6.18% during the forecast period (2025-30). Sub-Saharan Africa's demand for commercial vehicles is being driven by the region's improved infrastructure as well as the growth of the automotive, industrial, manufacturing, and agricultural sectors. Kenya, Uganda, and other Sub-Saharan nations have been importing unprocessed wheat maize and wheat flour from several nations including Indonesia, Malaysia, and others.

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In 2023 Kenya imported high-value consumer-focused agricultural goods worth about USD 583 million. Due to the rise in imports, trade activities are intensifying and governments in several nations including South Africa. Kenya and others are expanding their ports. The market is seeing an increase in demand for commercial vehicles as a result of ports being built to facilitate trade. For example, DP World intends to invest USD 3 billion in African ports by 2029. The government is also pursuing several other port expansion projects including an investment of USD 85 billion in ports such as Tangier Port Said Mombasa Tema Durban and others.

Moreover, reliance on imports made the food products vulnerable to supply chain issues, leading to the uncertainty of food prices & food insecurity in the region. Therefore, to reduce the dependency on imports & ensure food security, the governments in the region are encouraging agricultural activities with the establishment of the food & beverage industry. By 2030, the African food and agriculture industry is expected to surge from USD 280 billion annually to USD 1 trillion. Thus, the surging food and agriculture industry is also anticipated to augment the size & volume of The Sub-Saharan Africa Commercial Vehicle Market in the coming years.

Sub-Saharan Africa Commercial Vehicle Market Driver:

Rising Infrastructure Development Driving Market Demand – The governments of nations such as Tanzania, Ghana, and others have made investments in infrastructure development initiatives including the Takoradi Ports Infrastructure Improvement and Development Project. The building of roads, railways, ports, airports, and energy networks are all included in these infrastructure development projects. This lowers transportation costs making it easier for consumers and goods to move around while drawing in domestic and foreign investment. Commercial vehicles like trucks, buses, and construction vehicles are needed for these projects to transport materials. Therefore, the Sub-Saharan Africa Commercial Vehicle Industry is being driven by the construction of more infrastructure development projects. For instance,

• In 2025, Kenya will start the construction of a high-speed electric standard gauge railway linking its Indian Ocean port of Lamu to Ethiopia and South Sudan with an investment of approx. USD 13.8 billion.

Sub-Saharan Africa Commercial Vehicle Market Opportunity:

Growing Trade Activities Boosting the Requirement for Commercial Vehicles – The expansion of regional trade creates new markets for commercial vehicles in several sectors such as construction, mining, logistics, and agriculture necessitating efficient transportation. By lowering tariffs and fostering cross-border trade the African Continental Free Trade Area (AfCFTA) seeks to advance intra-African trade. It would allow the movement of goods between the African nation requiring the integration of commercial vehicles to support logistics and distribution.

Also, the growing e-commerce in regions like South Africa & Nigeria requires last-mile delivery services, creating more logistics demand, and further providing opportunities for light-duty & medium-duty trucks and vans. The expansion of commercial agriculture and mining industries in countries like Zambia, the Democratic Republic of the Congo, and Mozambique, offers opportunities for commercial vehicle providers for transportation, internal distribution, and exports.

Sub-Saharan Africa Commercial Vehicle Market Challenge:

High Interest Rates & Limited Financing Options – In many regions of Sub-Saharan Africa, economic instability and inflation have led to some of the highest interest rates in the world. Businesses find it costly to finance commercial vehicles in nations like Nigeria, Kenya, and Ghana due to fluctuating interest rates brought on by inflation and currency volatility. Small businesses find it challenging to purchase new vehicles because of the high cost of borrowing. The use of older and less efficient vehicles would be a result of high rates hindering the industry expansion. Because of factors like; irregular cash flows and lack of collateral, many financial institutions view vehicle loans as high-risk, making it extremely difficult to obtain financing for these vehicles. This is a major problem in countries like Zambia, Uganda, and others impacting the growth of various sectors that are associated with commercial vehicles.

Sub-Saharan Africa Commercial Vehicle Market Trend:

Increasing Focus on Environmental Sustainability Amplifying the Adoption of Electric Commercial Vehicles – Sub-Saharan Africa is focusing on environmental sustainability leading to a shift toward electric commercial vehicles (ECVs) within the region’s vehicle market. Electric vehicles are slowly being infused into the market with infrastructure development to support them. African nations are introducing several incentives and policies to promote the use of electric vehicles. As per the South African government, businesses investing in EV production shall be granted a 150% tax deduction from 2026. The Kenyan government is making significant investments to increase the use of renewable energy sources to sustainably power electric vehicles. As per Kenya's government, 5% of all newly registered automobiles will be electric by 2025. Such policies will accelerate the adoption of electric commercial vehicles for the reduction of carbon footprint.

Sub-Saharan Africa Commercial Vehicle Market (2025-2030): Segmentation Analysis

The Sub-Saharan Africa Commercial Vehicle Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the global level. Based on the analysis, the market has been further classified as:

By Vehicle Type

• Light Commercial Vehicle
• Medium Commercial Vehicle
• Heavy Commercial Vehicle

Out of them, the light commercial vehicle segment leads the Sub-Saharan Africa Commercial Vehicle Market. It holds approximately 35% of the total market share. They are applicable in both rural and urban areas which increases their demand. In countries like South Africa, Nigeria, and Kenya, there is a very high demand for pickup vans in the light commercial vehicles segment. As compared to heavy-duty trucks the operating cost of light commercial vehicles is low and they are more affordable. This makes them more accessible for small businesses and individual operators. With multiple uses like intercity transport, last-mile delivery, small-scale business, and agriculture, the demand for light commercial vehicles will continue to rise during the forecast period.

By Propulsion Type

• New
  • Diesel
  • Petrol
  • Electric
• Used
  • Diesel
  • Petrol
  • Electric

Based on the propulsion type, the diesel segment dominates the Sub-Saharan Africa Commercial Vehicle Market. This segment holds approximately 90% share of the total market value. For log-haul transport and heavy loads, diesel engines offer better fuel economy. For optimizing fuel costs and ensuring reliability over long-distance, many companies in Sub-Saharan Africa choose diesel vehicles for mainly mining, agriculture, and logistics purposes. Moreover, for the transportation of heavy goods and ease of operating on rugged terrain, there is a high requirement for excellent torque which is provided by diesel engines. Furthermore, the fueling infrastructure in the region is more inclined towards diesel as it is widely available across the region.

Sub-Saharan Africa Commercial Vehicle Market (2025-30): Regional Projections

Geographically, the Sub-Saharan Africa Commercial Vehicle Market expands across:

• South Africa
• Ethiopia
• Tanzania
• Kenya
• Uganda
• Zambia
• Cameroon
• Congo-DRC
• Congo-Brazzaville
• Niger
• Mozambique
• Nigeria
• Ivory Coast
• Ghana
• Burkina Faso
• Senegal
• Gabon
• Madagascar
• Angola
• Mauritius
• Seychelles
• Rwanda
• Liberia
• Malawi
• Togo
• Djibouti
• Cape Verde
• Benin
• Guinea-Bissau
• Guinea-Conakry
• Chad
• Sudan
• South Sudan
• Somalia
• Mauritania
• Central African Republic
• Burundi
• Eretria
• Gambia
• Rest of Sub-Saharan Africa

Out of them, South Africa leads the Sub-Saharan Commercial Vehicle Market. The well-established infrastructure and economic stability in South Africa lead to the high demand for commercial vehicles. The booming automotive industry and increasing local manufacturing capabilities are further fueling the growth of the commercial vehicle industry in the country. The supply chain growth supported by the local assembly operations from major brands like Toyota, Volkswagen, and Nissan is further pushing the South African Commercial Vehicle Market.

Sub-Saharan Africa Commercial Vehicle Industry Recent Developments:

• September 2024: Renault Trucks launched a test phase till December 2024 with GEODIS for its urban electric prototype “Oxygen” which is a 100% electrical truck.
• February 2023: ISUZU Motors opened a new dealership in Sudan to expand its footprint in Africa by providing high-quality vehicles and services to the African Market.

Gain a Competitive Edge with Our Sub-Saharan Africa Commercial Vehicle Market Report

1. Sub-Saharan Africa Commercial Vehicle Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Sub-Saharan Africa Commercial Vehicle Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.

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