South Africa will leverage the Intra-African Trade Fair (IATF) 2025 in Algiers, Algeria, from 4 to 10 September to cement its position as Africa's automotive manufacturing leader.
The event, organised by the African Export-Import Bank alongside the African Union Commission and African Continental Free Trade Area Secretariat, provides a strategic platform to advance continental industrialisation within the AfCFTA framework.
President Cyril Ramaphosa's recent emphasis on Africa's economic significance at the G20 Foreign Ministers Meeting underscores the continent's potential. "Africa is home to some of the world's fastest growing economies and faces unique challenges such as the impact of climate change, development needs and the effects of global trade dynamics," he stated, highlighting the critical need for African collaboration.
Central to South Africa's IATF participation is a business engagement event on 6 September themed: "South Africa fostering local automotive production and accelerating investment in the African continent through the AfCFTA." This initiative, developed with the Department of Trade and Industry, Automotive Industry Development Centre, East London Industrial Development Zone, and Tshwane Automotive Special Economic Zone, will showcase South Africa's manufacturing excellence while promoting the AfCFTA as a vital market access instrument for international partners.
The engagement features presentations by industry officials, a keynote address by Deputy Minister Kenny Morolong and panel discussions with leaders from major manufacturers, including Isuzu and Stellantis. These sessions aim to demonstrate South Africa's advanced capabilities, attractive investment incentives and potential for expanded continental collaboration.
South Africa's automotive sector represents a formidable economic force, contributing 4.9% to national GDP and nearly 19% of manufacturing output while employing approximately 500 000 people. The industry produced over 500 000 vehicles in 2023, ranking 22nd globally. The ambitious South African Automotive Masterplan targets 1.4 million annual vehicles by 2035, capturing 1% of global production through the Automotive Production and Development Programme, which attracted R8.8 billion in OEM investment during 2021 alone.
Despite global supply chain disruptions, the sector has shown remarkable resilience. New vehicle sales surged 17.5% in 2022, contrasting sharply with declines across other African markets, including Egypt and Morocco. However, significant challenges persist, particularly from illegal second-hand vehicle imports that cost billions annually and constrain local production growth.
Industry officials view the AfCFTA as instrumental in addressing these obstacles, promoting local development and accelerating investment to boost African vehicle production beyond current sub-million-unit levels.
Through IATF 2025 participation, South Africa seeks to strengthen continental economic partnerships while championing the AfCFTA as a transformative mechanism for inclusive growth and industrialisation across Africa.
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