South Africa joined the Intra-African Trade Fair (IATF) 2025, which is taking place from 4th to 10th of September in Algiers, Algeria.
This year’s 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 IATF offers a platform for engaging with the African business community and encouraging trade and investment across the continent. Team South Africa led the continental dialogue on industrialisation in the context of implementing the African Continental Free Trade Agreement (AfCFTA), and solidified the country’s position as Africa’s leading automotive manufacturing hub and a land ripe with investment opportunities.
Positioning the South African Automotive Industry as a Global Economic Player, President Cyril Ramaphosa recently emphasised Africa’s growing importance in global economic, political and environmental discussions at the G20 Foreign Ministers Meeting on 20 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 stressed.
South Africa’s presence at IATF directly reflects the vision of the President and highlights the importance of collaboration among African nations to thrive in the global economic landscape. Team South Africa hosted a Business Engagement on 6th September 2025, themed: “South Africa fostering local automotive production and accelerating investment in the African continent through the AfCFTA.”
Organised in collaboration with the Department of Trade and Industry, the Automotive Industry Development Centre (AIDC), the East London IDZ and the Tshwane Automotive SEZ, the event was to promote South Africa as the continent’s automotive manufacturing powerhouse, display the country’s advanced manufacturing capabilities and attractive investment incentives.
The business engagement featured presentations by the Department of Trade and Industry, with a keynote address by Deputy Minister in the Presidency, Kenny Morolong, and a panel discussion with industry leaders from companies like AIDC and Stellantis.
A Growing and Resilient Automotive Industry
South Africa’s automotive industry plays a key role in its economy, contributing approximately 4.9% to the national GDP and accounting for nearly 19% of its manufacturing output. Employing around half a million people, the sector produced over 500,000 vehicles in 2023, ranking 22nd globally.
The South African Automotive Masterplan (SAAM) sets an ambitious target of producing 1.4 million vehicles annually by 2035, aiming for 1.0% of global production.
The Automotive Production and Development Programme (APDP), has been hugely responsible for the growth of the industry which has attracted substantial foreign investment. In 2021, Original Equipment Manufacturers (OEMs) invested R8.8 billion into the sector.
Despite global challenges such as supply chain disruptions and economic pressures, the sector has demonstrated remarkable resilience. South Africa’s new vehicle sales notably increased by 17.5% in 2022, contrasting with declines in other African markets like Egypt and Morocco.
Overcoming Challenges and Uncovering Investment Opportunities
One critical challenge facing the African automotive sector is illegally imported second-hand vehicles. These imports cost South Africa billions annually and hinder the growth of local production.
The AfCFTA is therefore seen as a pivotal mechanism to overcome such obstacles, encouraging local development, accelerating investment and enabling Africa to increase its vehicle production beyond the current sub-million units per year.
South Africa participated in IATF 2025 to strengthen its economic ties across the continent while simultaneously championing the AfCFTA as a transformative force for inclusive growth and industrialisation in Africa.
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