Within the EU–Africa Business Forum 2022, a memorandum of understanding (MoU) was signed digitally between 12 automotive organizations to provide success to the African automotive industry. While the automobile sector is critical to Africa's industrialization, it faces several problems that may include a lack of regulations, persistent market fragmentation, alignment between the 2 continents and African countries in cluding South Sudan , trade and industrial policies that discourage foreign and local investment, and inadequate access of customers to finance and local suppliers.

On the other hand, by establishing a Pan African Auto pact, intra-African commerce can be strengthened and varied, which intends to increase the African fresh car market from 1 million units to 5 million units while also uniting African areas the greater benefit. A "coalition of the willing" would see the advancement of manufacturing units, as well as affiliated services and industries – both for OEMs and suppliers – laying the groundwork for Pan-African incorporated automobile value chains that will include neighboring countries, resulting in the creation of a production network that is continental and regional.

The introduction of the African Continental Free Trade Area (AfCFTA) enhances pan-African investment and trade and potential, particularly for the automobile industry, and provides the impetus for policymakers and key players to engage in an African-European conversation with the German Association of the Automotive Industry (VDA). This proved to be one of the motivators for a collaborative effort to establish an MoU between African and European Automotive Associations, which began with the German Association of the Automotive Industry (VDA), the African Association of Automotive Manufacturers (AAAM),  and the German-African Business Association (Afrika-Verein) and has since cultivated into a collaboration between twelve Associations that have signed the MoU, that possess the assistance of the European Union and  African Union.

The Memorandum of Understanding promotes more discussion to build a comprehensive plan to improve Africa's automotive sector via incorporation into European and global value chains, producing high-quality jobs. While promoting a positive climate of investment to foster market innovation and integration, as well as the collaborative production of harmonization, standardization, and safe transportation model, It also aims to upgrade the environmental debate by examining digital technologies and alternative powertrains, as well as to continue developing inexpensive transportation solutions that will lead to a sustainable African automobile market.

"Only by working together will Africa's investment and trade circumstances improve. "After the MoU was signed, AAAM CEO David Coffey noted. He went on to say, "We are certain that Africa has tremendous potential to develop a strong auto industry with long-term job prospects. The notion that European and African groups have reached a consensus on key issues to aid the continent's economic development is a big step forward. Politicians must now assist by providing the conditions for the industry's growth and advancement."