While China’s auto exports continue to lead in the global market, this “hot spot of potential” in Africa is releasing amazing energy.
From January to May 2025, China’s automobile exports to Africa surged 67% year-on-year, of which used cars have become a key track for exporters to seize the first opportunity by virtue of the huge demand of the African market of 5 million units/year (far exceeding the sales of new cars of 1.2 million units).
However, if you want to get a share of this market, you need to understand the policy compliance as well as master the whole process skills — this guide from market opportunity to practical operation to avoid pitfalls will help you open the “two veins” of used car export to Africa.
First, look at it first
Africa’s Used Car Market Where is the “Golden Opportunity”?
Why now is a good time to lay out Africa’s used car exports? Three sets of data tell you the answer:
– Huge demand base: Africa has only 42 cars per 1,000 people (less than 1/5 of the global average), but the middle class has already reached 360 million people and will exceed 1.1 billion in 2060. With the acceleration of urbanization, more cost-effective used cars have become the mainstream choice. According to the data of Toyota Tsusho, the annual sales volume of used cars in Africa is more than 4 times of that of new cars.
– China’s Advantages Highlighted: China’s automobile exports to Africa in May 2025 grew 104% in a single month, with South Africa, Nigeria, Egypt and other countries becoming core destinations. What’s more, enterprises like Chubotron have explored a mature model — exporting used cars of brands such as Dongfeng and BYD to Africa through the CIF trade model, providing one-stop services from procurement to customs clearance, breaking the traditional trade bottleneck.
– Policy dividend support: South Africa introduced “Electric Vehicle Industry Strategy”, 15% cash subsidy for locally produced battery components; Egypt, Kenya and other countries to accelerate the construction of charging piles (Egypt plans to build 12,000), although the new energy vehicles are still in the beginning stage, but hybrid, plug-in hybrid models have shown growth potential (January-April 2025), China’s exports to non-plug-in hybrid increased by 1481% year-on-year), bringing a buffer space for “oil-electric transition” for used car exports. Although new energy vehicles are still in their infancy, hybrid and plug-in models have shown potential for growth (China’s exports of plug-in hybrids to Africa increased by 1481% year-on-year in January-April 2025), which has brought a buffer space of “oil-electricity transition” for the export of used vehicles.
II. Re-engineering
A “Full Process Operational Manual” for Used Vehicle Exports to Africa
In order to deliver a used car to a buyer in Africa, there are 5 core elements that must be linked together:
1
Prepare: Qualification + Compliance “Double Pass”
-Enterprises first “license”: must obtain the Ministry of Commerce used car export pilot enterprise qualification, ready to business license, customs declaration registration certificate, fixed operating site certificate, but also equipped with at least 3 professional judgment evaluation personnel (need to provide proof of qualification).
-Vehicles should be “up to standard”:
The age of the car is strict: Nigeria ≤ 15 years, Kenya ≤ 7 years, Ethiopia ≤ 5 years, the requirements of each country vary greatly, check in advance;
Passed inspection: Find a third-party organization to inspect according to the “Export Quality Requirements for Used Commercial Vehicles”, focusing on checking accidental vehicles, soaking vehicles, and also confirming the adaptability of the left rudder/right rudder (most countries in Africa use the right rudder);
Documents ready: vehicle registration certificate, purchase invoice, tax payment certificate, export license, third-party test report, less one may be stuck.
2
Transaction Session: Locking in a Buyer + Signing a Good Contract
Don’t be blind when looking for buyers: prioritize cooperation through B2B platforms and local distributors to avoid “one-shot deals”;- Don’t be blind when looking for buyers: prioritize cooperation through B2B platforms and local distributors to avoid “one-shot deals”;
The contract should be “fine”: clear payment methods (it is recommended to split the prepayment + final payment to reduce the risk), description of the car condition (including maintenance history, configuration details), car inspection terms, especially to agree on the “If the vehicle is not in line with the description of the solution “, to reduce subsequent disputes.- The contract should be “fine”: clear payment methods (it is recommended to split the prepayment + final payment to reduce the risk), description of the car condition (including maintenance history, configuration details), car inspection terms, especially to agree on the “If the vehicle is not in line with the description of the solution “, to reduce subsequent disputes.
3
Customs clearance for export: don’t miss the COC certification
It can be entrusted to professional customs brokers or can be operated on its own, but it must have packing list, commercial invoice and export license on hand;- It can be entrusted to professional customs brokers or can be operated on its own, but it must have packing list, commercial invoice and export license on hand;
Reminder: South Africa, Nigeria and other countries require COC certification (conformity certification) in advance, you need to contact SGS, BV and other organizations to inspect the car, to get the certification before customs clearance, otherwise it may be returned to the port.- Reminder: South Africa, Nigeria and other countries require COC certification (conformity certification) in advance, you need to contact SGS, BV and other organizations to inspect the car, to get the certification before customs clearance, otherwise it may be returned to the port.
4
International logistics: choosing the right mode of transportation
Mainstream shipping: roll-on/roll-off ships (suitable for fully loaded vehicles, easy loading and unloading, lower cost) or containers (40-foot containers can hold 2-3 compact cars, but require dismantling of mirrors and seats, and reinforcement, which adds to the cost);- Mainstream shipping: roll-on/roll-off ships (suitable for fully loaded vehicles, easy loading and unloading, lower cost) or containers (40-foot containers can hold 2-3 compact cars, but require dismantling of mirrors and seats, and reinforcement, which adds to the cost);
Advance booking: book at least 7-14 days in advance, inform the freight forwarder of the size and weight of the vehicle to avoid delays due to insufficient space.- Advance booking: book at least 7-14 days in advance, inform the freight forwarder of the size and weight of the vehicle to avoid delays due to insufficient space.
5
Customs clearance in destination country + final payment collection: proactive assistance to buyers
Customs clearance do not “dump”: buyers need to apply for an import license and pay tariffs (different tax rates in different countries, such as Nigeria used car tariffs of about 35%), but exporters to take the initiative to provide customs clearance documents (including certificates of origin, technical documents), some countries (such as Uganda) also need to ECTN Electronic Cargo Tracking Note (ECTN) is also required in some countries (e.g. Uganda) to help buyers prepare in advance;- Customs clearance do not “dump”: buyers need to apply for an import license and pay tariffs (different tax rates in different countries, such as Nigeria used car tariffs of about 35%), but exporters to take the initiative to provide customs clearance documents (including certificates of origin, technical documents), some countries (such as Uganda) also need to ECTN Electronic Cargo Tracking Note (ECTN) is also required in some countries (e.g. Uganda) to help buyers prepare in advance;
Tail payment should be “watched”: after confirming that the buyer’s customs clearance is correct, timely collection of the final payment, the final payment to the account and then deliver a full set of documents, to avoid the risk of “the goods have arrived in Hong Kong, the money is not received”.- Tail payment should be “watched”: after confirming that the buyer’s customs clearance is correct, timely collection of the final payment, the final payment to the account and then deliver a full set of documents, to avoid the risk of “the goods have arrived in Hong Kong, the money is not received”.
III. Pitfalls to be avoided
These 3 Risks to Remember
01
Keep an eye on policy changes
Some countries in Africa have frequent policy adjustments, for example, Kenya has short-term tightening of used car import age, if you do not follow up in time, it may lead to the arrival of the vehicle does not meet the new regulations, can only be returned or destroyed, it is recommended to pay attention to the target country’s customs, the official website of the Ministry of Commerce, or to find the local partners to synchronize information;
02
Don’t choose a “problem car” on the cheap.
Some companies in order to reduce costs, the acquisition of used cars in poor condition, seemingly high profits, in fact, the high cost of maintenance in Africa, but also smashed the brand’s reputation, the long-term loss is not worth it;
03
Don’t just look at the price of logistics
Select logistics companies give priority to look at the “African special line experience”, such as whether they are familiar with the destination country port operation, whether they can deal with emergencies (such as stranded ports), low-priced logistics may be hidden “surcharges”, but increase the total cost.
For enterprises that want to enter the market, Africa’s used car market is not a place to make quick money, but a track that needs to be plowed for a long time. Starting from compliance, making the process more detailed, and then choosing the right source of vehicles in combination with local demand (for example, poor road conditions in Africa, prioritizing durable SUVs and pickup trucks), in order to stand firmly in this growth dividend. Are you ready to layout?
