Africa, the new El Dorado for luxury cars

Africa, the new El Dorado for luxury cars

ABIDJAN - 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 euros, representing decades of work for an Ivorian earning the minimum wage, even after it was recently hiked 60 per cent to 60,000 CFA francs (around 90 euros, S$157) a month.

Yet in wealthy Abidjan neighbourhoods the streets are jammed with more luxury autos than in rich quarters of European capitals.

It's 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 per cent 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 per cent 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.

But 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 United States and even the Middle East. And it isn't just SUVs.

Despite the potholes that riddle Abidjan's streets, there are importers offering low-slung sports cars like Lamborghinis and Ferraris.

A former rebel military leader turned security official, Issiaka Ouattara, known as "Wattao", was recently seen on national 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.

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