South Africa will participate in the Intra-African Trade Fair (IATF) 2025, scheduled to take place from 4th to 10th September in Algiers, Algeria.
The event is organised by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat.
The country aims to use the platform to lead continental discussions on industrialisation within the context of the African Continental Free Trade Agreement implementation, whilst reinforcing its position as Africa’s leading automotive manufacturing hub.
Presidential Backing for African Economic Integration
President Cyril Ramaphosa recently highlighted Africa’s growing significance in global discussions at the G20 Foreign Ministers Meeting on 20th February 2025. "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," the President stated, emphasising the importance of collaboration amongst African nations.
Business Engagement Event Planned
South Africa will host a business engagement on 6th September 2025, themed: "South Africa fostering local automotive production and accelerating investment in the African continent through the AfCFTA." The event, delivered in collaboration with the Department of Trade and Industry (the dtic), the Automotive Industry Development Centre (AIDC), the East London Industrial Development Zone and the Tshwane Automotive Special Economic Zone, aims to:
The business engagement will feature presentations by the dtic, a keynote address by Deputy Minister in the Presidency, Kenny Morolong, and a panel discussion with industry leaders from companies including Isuzu and Stellantis.
Robust Automotive Sector Performance
South Africa’s automotive industry contributes approximately 4.9% to the national GDP and accounts for nearly 19% of manufacturing output. The sector employs around half a million people and produced over 500,000 vehicles in 2023, ranking 22nd globally.
The South African Automotive Masterplan (SAAM) has set an ambitious target of producing 1.4 million vehicles annually by 2035, aiming to capture 1% of global production. This growth is supported by the Automotive Production and Development Programme (APDP), which attracted R8.8 billion in investment from Original Equipment Manufacturers (OEMs) in 2021 alone.
Industry Resilience Amid Global Challenges
Despite global supply chain disruptions and economic pressures, South Africa’s automotive sector has demonstrated considerable resilience. New vehicle sales increased by 17.5% in 2022, contrasting sharply with declines in other African markets such as Egypt and Morocco.
Addressing Sector Challenges
The African automotive sector faces significant challenges from illegally imported second-hand vehicles, which cost South Africa billions annually and impede local production growth. Officials view the AfCFTA as a crucial mechanism to overcome such obstacles, promoting local development and accelerating investment to enable Africa to increase vehicle production beyond the current sub-million units per year.
Through its participation in IATF 2025, South Africa seeks to strengthen economic ties across the continent whilst championing the AfCFTA as a transformative force for inclusive growth and industrialisation in Africa.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
