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Bajaj

Shift in Production Location to leverage cost benefits


Changing policies of
African Automotive Parameters considered for Location of Production Unit Kenya
Association
Infrastructure Development Share of intra-regional goods exports (% GDP)
Index: transport; electricity; ICT;
2008: Low Import water and sanitation Share of intra-regional goods
duties for imports (% GDP)
Motorcycles Total regional electricity
trade (net) per capita Level of customs duties
on import
Average cost of roaming Trade
Infrastructure
Integration

2013: High Import


Financial &
duties on Motorcycle Inflation rate differential Macroecono Productive
& emphasis on local mic Integration Share of intra-regional
Advantages:
assembling Integration intermediate goods exports

Free Share of intra-regional  Access to low cost


intermediate goods imports
Regional convertibility of movement capital (Mauritius)
national currencies of People Merchandise Trade
Complementarity Index
 Access to cheap
2017: high tax on labor (Sudan)
imported parts and
stress on local Proportion of REC member countries Proportion of REC member countries
 Tax holidays
production whose nationals are issued with a visa that are members whose nationals  Low Utility rate
on arrival do not require a visa for entry