Mon, Dec 30, 2013 - Page 15 News List

Africa is the new big market for luxury car brands

AFP, ABIDJAN, Ivory Coast

A Porsche Cayenne is parked on a street in Abidjan, Ivory Coast, on Dec. 19.

Photo: AFP

Porsches, Range Rovers and even Maseratis — luxury cars are no strange sight weaving through the old bangers that rumble along Abidjan’s chaotic streets, another indication of the emergence of a wealthy class in Africa.

Each of the vehicles costs at least tens of thousands of US dollars, representing decades of work for an Ivorian earning the minimum wage, even after it was recently hiked 60 percent to 60,000 West African CFA francs (US$125) a month.

Yet in wealthy Abidjan neighborhoods, the streets are jammed with more luxury cars than you would expect to see in rich quarters of European capitals.

It is the same story in Johannesburg, Lagos or even Libreville. In the Gabonese capital it is common to see SUV after SUV snaking along the oceanside boulevard.

Wealthy Africans love the big, high, four-wheel drive vehicles.

Not only are they better adapted to the roads, regularly in a poor condition, they have also become something of a status symbol.

In Gabon, 70 percent of the 6,000 new vehicles sold each year are big 4x4s, mostly Japanese models, according to the Gabonese Federation of Car Importers.

“Here, its a 4x4 or nothing,” said one car importer who declined to give his name.

For the Gabonese, the SUV has become “the symbol of success, much more than a house”.

In Ivory Coast, luxury cars make up only 3 percent of the 8,000 new cars sold each year, said one industry expert, who asked to remain anonymous.

“However certain customers are looking for the top of the line — “bling-bling” cars — there are people with money like that in the market,” he added.

However, the high taxes slapped on new cars have given the second-hand car market a boost. A significant proportion of luxury cars enter the country this way from Europe, the US and even the Middle East.

And it is not just SUVs. Despite the potholes that riddle Abidjan’s streets, there are importers offering low-slung sports cars like Lamborghinis and Ferraris.

A former Ivory Coast rebel military leader turned security official, Issiaka Ouattara, known as “Wattao,” was recently seen on Ivory Coast television driving a Maserati.

This brash display of luxury cars is an indication of the growing wealth in Africa, despite increasing numbers living in extreme poverty.

The African Development Bank put the size of the African middle class at 300 million in 2011.

Ventures financial magazine recently put the number of African billionaires at 55 — more than triple the previous count.

That figure is likely an underestimate, the Nigerian magazine said, as many are not comfortable disclosing the true extent of their wealth.

Luxury automakers are not letting this bonanza pass them by.

Porsche boasts a brand new showroom in Victoria Island, one of Lagos’ most chic neighborhoods.

The German carmaker’s sales have jumped by nearly 40 percent over the past two years in South Africa, where it has been present for decades. It recently set up shop in Angola and Ghana as well as Nigeria, according to Christer Ekberg, Porsche’s managing director for the Middle East and Africa.

With 2,000 Porsche cars sold in sub-Saharan Africa in the first three quarters of this year, which the company described as a “promising” figure, the automaker is committed to expanding further across the continent.

Local partners are being sought for dealerships in Cameroon, the Democratic Republic of Congo, Ethiopia, Gabon, Ivory Coast, Namibia, Senegal, Tanzania and Zambia.

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