Continental Auto Industry Gathers Momentum Amidst Trade Push, SA Exports Hold Steady

Johannesburg, a historical nexus of commerce and ambition, recently hosted pivotal discussions framing Africa’s automotive future. The gathering served as a precursor to the Africa Automotive Show, integrated within the larger Intra-African Trade Fair (IATF2025), scheduled for Algiers, Algeria, between 4 and 10 September 2025. 

This event is positioned as a critical driver for continental economic integration under the African Continental Free Trade Area (AfCFTA), even as specific challenges, including the noted closure of South Africa's Goodyear tyre factory, underscore persistent hurdles. 

Representatives from the African Export-Import Bank (Afreximbank) and the South African government emphasised the urgent need to translate policy into tangible trade. Afreximbank executives highlighted a fundamental barrier: not tariffs or logistics, but a deficit in actionable market intelligence. 

Illustrative cases were stark: Tunisia, Morocco, and South Africa collectively import over $400 million in leather goods annually from outside Africa, despite significant production capacity in Ethiopia, Kenya, and Sudan. Similarly, West African nations spend upwards of $3 billion importing meat from distant markets like Argentina and Australia, overlooking potential suppliers including Mali, Namibia, Chad, Sudan, Botswana, South Africa, and Zambia. 

"This isn't about capacity," Humphrey Nwogo, Regional Director, Southern Africa for Afreximbankl stressed. "The problem is connectivity. The problem is lack of information." 

These imbalances represent missed chances for job creation, value addition, and economic diversification continent-wide. Assembly operations at the Toyota plant in Prospecton, Durban 

The IATF, now formally designated by the African Union (AU) as the AfCFTA's commercial face and integrated into its framework, is seen as the strategic tool to bridge this gap. Its relevance was affirmed at the 2024 AU Summit, where heads of state acknowledged its role in facilitating cross-border agreements. 

South African Context: 

Exports and ImperativesAgainst this backdrop, South Africa's role in the continental vehicle manufacturing landscape remains significant. According to the latest figures from naamsa | The Automotive Business Council, the country produced approximately 515 000 vehicles during 2024. Combined with substantial output from North African nations, primarily Morocco and Egypt, total continental production reached an estimated 1,2-million units. 

This starkly contrasts with minimal output from West, Central, and East Africa, highlighting significant growth potential. 

"These figures demonstrate the existing industrial base concentrated in the north and south," says Nwogo. "The potential for replication and expansion into other African regions is immense. 

Achieving a continental output target of 5-million units is a feasible ambition underpinned by the AfCFTA." 

However, South African officials acknowledged hurdles hindering deeper integration. Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, pointed to logistics constraints and skills gaps impacting cost-competitiveness for South African exports elsewhere in Africa. 

He cited the example of a Tunisian colleague driving a vehicle manufactured in Thailand rather than South Africa. "That’s why we are in this room," Zikalala remarked, underscoring the need for the AfCFTA to address these frictions. 

Beyond Assembly: The Skills Imperative

The discussion extended beyond mere vehicle assembly to encompass the entire value chain and skills ecosystem. Industry experts emphasised that sustainable growth requires equipping markets with the technical and soft skills needed to service and maintain vehicles post-sale. 

The African Association of Automotive Manufacturers (AAAM) highlighted its Skills Development Working Group, focusing on building capacity from artisan levels to policy-making echelons. Initiatives include executive short courses for trade officials and practical exposure within manufacturing plants, aiming to foster informed policy development and local job creation alongside industrialisation.  

Kenya Positions for AfCFTA Gains

Echoing the continent-wide focus, Kenya used its own IATF2025 roadshow to position itself as a trade, industrial, and innovation hub. Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, stated, "The solutions to Africa’s problems lie with Africans. It is essential for countries within the continent to strengthen intra-African trade... 

With a well-educated population, abundant resources, and banks ready to finance investment, Africa has what it takes to elevate itself to the next level." Afreximbank's Executive Vice President, Haytham Elmaayergi, reiterated the information gap challenge at the Kenyan event, using the leather import example, and spotlighted Kenya’s digital innovation sector as having significant export potential under the AfCFTA. 

As nations prepare for Algiers 2025, the focus remains on harnessing regional value chains, accelerating industrialisation, and overcoming informational and infrastructural barriers. The Africa Automotive Show within the IATF stands as a pivotal marketplace and catalyst for converting the AfCFTA's promise into tangible commercial progress across the continent, with South Africa's established export capacity poised to play a key role amidst ongoing domestic challenges. https://bit.ly/4l644vI

Goodyear Closes South Africa Plant: Economic Impact Explained

The announcement that Goodyear, one of the world’s largest tyre manufacturers, will shut down its South African plant in Kariega, Eastern Cape, marks another significant blow to the country’s struggling manufacturing sector. 

The closure will result in the loss of approximately 750 direct jobs, with a ripple effect likely to impact thousands more in the surrounding economy. This decision follows a troubling trend of multinational companies scaling back operations in South Africa, raising questions about the broader economic climate and the role of policies such as Broad-Based Black Economic Empowerment (B-BBEE) in shaping corporate investment decisions.   

Goodyear’s exit is part of a broader global restructuring strategy aimed at cutting costs and improving efficiency. The company has faced mounting financial pressures, including rising raw material costs, supply chain disruptions and declining demand in certain markets. 

In a statement, Goodyear cited the need to optimise its manufacturing footprint, with the South African plant deemed no longer viable in the long term.   

However, while global factors played a role, local challenges have also contributed to the decision. South Africa’s manufacturing sector has been under strain for years due to persistent electricity shortages, logistical bottlenecks at ports and railways and rising operational costs. 

These issues have made it increasingly difficult for manufacturers to remain competitive, particularly when exporting to international markets.   

The immediate impact of Goodyear’s closure will be felt most acutely by its employees and their families. The Uitenhage plant has been a major employer in the Eastern Cape since the 1930s, providing stable, skilled jobs in a region with high unemployment. 

The loss of 750 direct jobs will have a cascading effect on suppliers, service providers and small businesses that rely on the plant’s operations.   

For many workers, finding alternative employment will be difficult. South Africa’s official unemployment rate stands at around 32%, with youth unemployment even higher. The Eastern Cape, in particular, has struggled with economic stagnation, meaning that retrenched employees may face prolonged joblessness or be forced to relocate. 

The social consequences—increased poverty, household instability, and reduced spending in the local economy—will likely be severe.   

While not the sole reason for Goodyear’s departure, South Africa’s B-BBEE policies have been cited as a contributing factor in disinvestment decisions. B-BBEE regulations are designed to redress historical economic inequalities by encouraging black ownership, management representation and procurement from black-owned businesses. 

While the intentions are commendable, some analysts argue the compliance burden and associated costs have made the country less attractive to multinational corporations.   Companies operating in South Africa must meet strict B-BBEE scorecard requirements, which can involve significant expenditure on transformation initiatives, skills development and supplier diversification. For firms already grappling with low profitability, these additional costs can tip the scales in favour of relocating to more business-friendly environments.   

This is not the first time B-BBEE has been linked to corporate exits. In 2023, Nissan South Africa announced a review of its Rosslyn plant’s future, sparking fears of a potential closure. 

Though no final decision has been made, industry insiders suggest regulatory pressures, along with other economic challenges, are being weighed in the assessment. 

Similarly, other multinationals, such as Murray & Roberts and Sasol, have scaled back local operations in recent years, citing difficult operating conditions.   

Goodyear’s exit fits into a concerning pattern of multinational companies reassessing their South African operations. In 2022, P&G closed its Johannesburg manufacturing plant, shifting production to other African countries. These departures suggest a growing reluctance among global firms to maintain a manufacturing presence in the country.   

The reasons for disinvestment are multifaceted, but common themes emerge: unreliable infrastructure, policy uncertainty, and high costs of doing business. While B-BBEE is not the primary driver, it adds another layer of complexity for companies already dealing with power cuts, port delays, and sluggish economic growth.   

To stem the tide of disinvestment, South Africa needs urgent reforms to improve the business environment. Stabilising electricity supply, fixing Transnet’s rail and port inefficiencies and reducing bureaucratic red tape should be top priorities. At the same time, policymakers may need to reassess how B-BBEE is implemented to ensure it does not inadvertently deter investment.   

Some experts suggest a more flexible approach, where compliance requirements are balanced against the need to retain jobs and industrial capacity. Engaging with multinational companies to understand their concerns, rather than imposing rigid regulations, could help strike a better balance between transformation and economic growth.   

Goodyear’s departure from South Africa is a symptom of deeper structural problems in the economy. While global restructuring played a role, local challenges—including energy shortages, logistical failures and regulatory pressures—have made the country a less competitive manufacturing hub. The closure will devastate workers and the Kariega community, highlighting the urgent need for policy interventions that encourage investment rather than drive it away.   

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f South Africa fails to address these issues, more multinational exits are likely, further eroding the country’s industrial base and worsening unemployment. The time for decisive action is now—before more factories follow Goodyear out the door. https://bit.ly/3ZT4zAU

Namib Mills' Efficient Logistics with Hino Trucks

Windhoek, Namibia – Grain processor Namib Mills depends on its fleet of Hino trucks for dependable and efficient transport of raw materials and finished goods across the country. A recent addition, a Hino 700 2841 truck tractor, is performing effectively in daily operations. 

Paired with a three-axle GRW tautliner trailer, it regularly handles payloads between 28 and 30 tons on Namibia's primary routes. Within the Namib Mills fleet, this specific truck achieves an average fuel consumption of 2,89 km/litre (34,6 l/ 100 km) and records an average operational cost per kilometre of N$20,07, figures reported to meet the company's expectations. 

Supporting its extensive logistics and distribution network nationwide, the Namib Mills fleet incorporates 119 Hino trucks. This diverse mix includes models from the Hino 200, 300, and 500 series. Fuel efficiency and favourable lifetime operating costs are significant factors driving Namib Mills' choice of Hino as a key business partner. 

"We also select Hino trucks because they are competitively priced while providing reliable and durable performance,” commented Willem le Roux, Namib Mills’ Distribution and Logistics Manager. 

"An added benefit is the availability of capable after-sales service through several dealerships located around the country.” 

Maintenance for the Hino fleet is conducted regularly at Hino Pupkewitz dealers in Namibia, strictly adhering to the manufacturer's prescribed service intervals. 

“This proactive maintenance approach supports the consistent performance and reliability we experience from our Hino trucks over extended periods,” explained Le Roux. “It also helps ensure the smooth running of our business, which operates according to demanding schedules.” 

When asked about future Hino purchases, Le Roux responded decisively: “Absolutely!” 

Founded in 1982 as a small milling operation, Namib Mills has established a long-standing presence in Namibia. The company has expanded significantly and now offers a range of products including maize meals, flour, mahangu, sugar, rice and pasta. https://bit.ly/3ZhNoJ3