Intra-African Trade Fair (IATF): A New Era for African Trade

Africa’s flagship trade and investment event, the Intra-African Trade Fair (IATF), has officially cemented its place as a permanent institution, now headquartered in Harare, Zimbabwe.

This move signals a significant leap forward in Africa’s journey toward economic integration. The launch of the Intra-African Trade Fair Company (IATFCO) at IATF2025 in Algiers marks a new era for the event.

IATFCO is now a standalone organization, designed to ensure the fair’s long-term sustainability and alignment with the ambitions of the African Continental Free Trade Area (AfCFTA). Zimbabwe secured the role of host after a competitive bidding process that included Burkina Faso, Cameroon, Malawi, Zambia, and South Africa.

According to IATF Advisory Council Chairman and former Nigerian President Olusegun Obasanjo, Zimbabwe was chosen for its strong conference infrastructure, excellent air connectivity, abundant accommodation, and its commitment to expansion.

As he put it, this milestone ushers in a new chapter—establishing IATF as the continent’s premier forum for trade and investment, and helping to drive the realization of AfCFTA’s vision. Afreximbank President and Board Chairman Prof. Benedict Oramah congratulated Zimbabwe and called for swift action to operationalize IATFCO as an independent and sustainable organization.

Afreximbank has committed an initial $28-million in capitalisation, with Prof. Oramah urging additional support from African governments, corporations, and financial institutions as the new entity takes shape. IATF’s role as a platform for showcasing African goods and services, facilitating deal-making, and fostering cross-border business connections has never been more vital.

With AfCFTA’s single market of 1,4-billion people and a combined GDP exceeding $3,5-trillion, the opportunities are tremendous.

The most recent fair, held in September, attracted over 112 000 visitors from 132 countries. The event concluded with more than $48,3-billion in signed trade and investment deals and featured 2 148 exhibitors—a testament to the growing influence and momentum of African trade on the global stage.

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Transforming Africa's Auto Industry: Skills, Financing, and Policy

Afreximbank’s renewed partnership with the African Association of Automotive Manufacturers (AAAM) signals a sharp focus on building out Africa’s automotive sector from the inside. They made it official during the recent Intra-African Trade Fair 2025 in Algiers and inked the deal with signatures from Dr Gainmore Zanamwe (Director of Trade Facilitation, Afreximbank) and Ms Martina Biene (President, AAAM).

At its core, the MoU leans on three business pillars: regional value chains, accessible financing and building the right policy environment and skillsets. Dr Zanamwe said Afreximbank is all-in on helping Africa’s auto industry evolve from a patchwork of importers to a real producer. In practical terms? Investing in local manufacturing, creating jobs and reducing the continent’s over-reliance on used car imports.

Biene made it clear—this isn’t just about funding. The sector needs targeted upskilling, better logistics and modern infrastructure. All these pieces need to move together or ambition falls flat. With Afreximbank’s reach and AAAM’s vision, the goal is a continentwide network: connecting suppliers, manufacturers and finance tools so African carmakers stop playing catch-up.

This updated partnership doesn’t stand alone. Coordination with big players—the AU, AfCFTA, ARSO, and others—should streamline standards, upskill the workforce and keep blended capital flowing in. Biene says that, with focus, Africa could be producing at least 3,5–5-million vehicles annually by 2035. Projections like that mean more jobs, stronger local supply chains, and a shot at real industrial gains, not just incremental change.

The numbers at IATF2025 back up the momentum: 112 000 visitors, 2 148 exhibitors from 132 countries, and trade deals totaling $48,3-billion across just seven days. The Africa Automotive Show was a highlight, showcasing not just potential but actionable paths for how the industry could scale up fast.

While the broad terminology ‘automotive’ tends to have its focus on cars, there is a shift in the trucking industry with the show highlighting broad interest from truck manufacturers and, in deed, a new focus on the commercial vehicle sector is emerging as a key topic within Africa’s automotive industry. This follows insights shared by Ezra Mereng, the director of GF Vehicle Assemblers in Tanzania, at the recent Africa Automotive Show held as part of the Intra Africa Trade Fair in Algiers, Algeria.

Mereng detailed the establishment of his multi-brand assembly plant in Dar es Salaam, which began operations during the Covid-19 pandemic. The facility was established to move beyond simple importation and address the needs of Tanzania and its six landlocked neighbours, which rely heavily on the port of Dar es Salaam for trade.

Over the past five years, the plant has assembled more than 4 500 trucks across four brands and 11 different models, including Hyundai and FAW.

A significant driver of demand for these medium and heavy commercial vehicles, according to Mereng, is the number of large infrastructure projects underway across the continent. This demand creates immediate opportunities for local assembly operations to support sectors such as mining and transportation.

The growth of such local operations, however, is heavily dependent on government policy as a key enabler. Mereng noted that regional integration, particularly through the African Continental Free Trade Area (AfCFTA), could be pivotal.

The agreement is expected to help overcome longstanding regional trade barriers. This integration is seen as a way to develop more cohesive regional value chains for components, which would in turn improve investor profitability and enable further investment in local skills and training.

This model of local assembly is already well-established in other parts of Africa. South Africa has a long history of commercial vehicle assembly for major international brands, serving as a manufacturing hub for the region.

Similarly, Kenya has a growing presence in the sector under the East African Community framework. The emergence of assembly operations in Tanzania represents a further expansion of this trend, suggesting a gradual shift towards more localised vehicle production across the African continent.

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Volvo Trucks Launches Euro 6 Assembly in South Africa

Volvo Trucks South Africa is gearing up to assemble its latest Euro 6 trucks at their Durban plant starting in early 2026. This move puts their KwaZulu-Natal site at the forefront of commercial vehicle production in the area.

Mattias Rodier, CFO of Volvo Trucks South Africa’s, said this decision shows the company’s focus on both greener transport and supporting local manufacturing. He added it reinforces the commitment to giving South Africa cleaner, more efficient transport choices.

Mattias Rodier

The Euro 6 standard is a big step up from South Africa's current Euro 2 rules. To get ready, the Durban plant, which was updated in 2022 for Euro 5 production, has been upgraded again.

They've tweaked the assembly line for new parts like AdBlue tanks and special exhaust systems. Plus, they’re investing in team training to keep up product quality.

By assembling these trucks locally, Volvo Trucks can avoid import duties, potentially making these advanced models more affordable. Rodier explained that they’re listening to what their customers need. Building Euro 6 trucks in South Africa helps them meet the rising demand for cleaner tech while keeping prices competitive. The truck engines will come from Volvo’s factory in Skövde, Sweden, and will be shipped to Durban for assembly.

This new Euro 6 production will fit in with the current assembly of Volvo’s heavy-duty truck lines, like the FH, FM, and FMX, improving the plant's overall output.

The Volvo FH Euro 6, already available in South Africa with several horsepower options, is built for long-distance transport, a vital part of the country's economy. This truck is designed to be efficient, aiming to cut diesel use and lower ownership costs for fleet managers.

Volvo Trucks South Africa is also planning to bring in the FH Aero model soon. Currently being tested and approved for South Africa, this aerodynamic truck is viewed as a top choice for long-haul transport. The FH Aero, which won the 2025 Green Truck award in Germany, will come with both diesel and electric options.

Rodier is excited about the model, saying it’s Volvo’s most efficient truck yet as they work to lower CO2 emissions across their product line.

He describes it as a safe, aerodynamic, high-quality truck designed for tough long-haul jobs and customer success, and he looks forward to introducing it to the South African market. A launch date will be announced after testing and approvals are complete.

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Hino South Africa's Strategy for New Energy Vehicles Explained

Hino South Africa has outlined its multi-faceted strategy for new energy vehicles. Itumeleng Segage, General Manager of Hino South Africa, explained the company is pursuing a multipath approach, developing a range of power units to suit different operator requirements.

This strategy includes the continued refinement of internal combustion diesel engines, alongside the offering of diesel-electric hybrids and battery electric trucks in certain markets. The company is also advancing the development of hydrogen as an emission-free power source, with global trials currently underway. Segage noted green hydrogen is considered a suitable energy source for long-haul trucks that operate from depots equipped with refuelling infrastructure.

In South Africa, a trial involving 38 Hino 300 diesel-electric hybrid models is in progress. These vehicles are being operated by customers on a non-ownership basis, with initial data indicating fuel consumption savings in the region of 20%. To facilitate the trial, Hino South Africa is subsidising the acquisition cost. In partnership with Toyota’s mobility brand, KINTO, a low-risk, all-inclusive leasing solution will be provided to selected customers over a four to five-year period.

The Hino 300 Hybrid is designed for urban operations, and five dedicated dealers have been appointed to maintain the vehicles during the trial. The media event also featured a display of the Hino Dutro Z EV, a battery-electric walk-through van already operational in other markets. The van has a one-ton payload and a driving range of 150 km, making it suitable for final mile deliveries. Its 40 kWh lithium-ion battery can be fully recharged in eight hours using a domestic socket.

Satoshi Ogiso, President and CEO of Hino Motors Limited in Japan, addressed the ongoing integration of Hino, Fuso and Daimler into a new global truck entity. Anton Falck, Vice President of Hino South Africa, assured the Hino distribution network and retail model in South Africa will remain unchanged, with a continued focus on the ‘Hino Total Support’ strategy.

Anton Falck (left), the Vice President of Hino South Africa and Itumeleng Segage, 

his General Manager

Falck highlighted the brand’s long-standing presence in the local market, spanning more than 50 years through its parent company, Toyota SA Motors. He attributed the brand’s stability in a competitive market to its reputation for quality, durability and reliability (QDR), which is supported by aftersales service. This is reflected in customer satisfaction surveys; Hino has been ranked first overall in Comparative Customer Satisfaction since March 2020 and has received a Platinum Award in the NADA Dealer Satisfaction Survey for five consecutive years. The loyal client base and committed network of 66 dealers have contributed to an improvement in Hino’s market share, moving from fifth in 2023 to third so far in 2024.

A significant announcement was the introduction of a six-year driveline warranty, provided at no additional cost. This warranty, which is transferable if a truck is sold within its term, is applied retrospectively to vehicles purchased since January 2025.

The warranty is subject to kilometre restrictions dependent on the model and requires adherence to recommended service intervals. Falck described the warranty as an initiative that reflects confidence in Hino’s engineering standards and is supported by its dealer network.

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Illegal Vehicle Imports Hinder African Automotive Goals

ALGIERS – A concerted drive by African nations to build a integrated continental automotive industry is facing a formidable obstacle: the pervasive influx of illegally imported used vehicles and a critical lack of affordable financing for new cars.

This challenge was a central theme at the recent African automotive forum, part of the Intra African Trade Show, where policymakers and industry leaders outlined an ambitious vision to transform the continent from a primary importer of vehicles into a global manufacturing and export hub under the African Continental Free Trade Area (AfCFTA).

Chery Tiggo 2 Pro on display at the Africa Automotive Show in Algiers

A key pillar of this strategy, according to Gainmore Zanamwe, Director of Trade Facilitation for the African Export-Import Bank (Afreximbank), involves “freezing out second-hand vehicles imports” and “incentivising local production” to ensure Africa becomes a “manufacturing hub for mobility” rather than a “dumping ground for vehicles.”

However, this ambition clashes with the current market reality. Data indicates while new vehicle sales across the continent sit at approximately 1,2-million units annually, the number of used vehicle imports, both legal and illegal, far exceeds this figure. In South Africa alone, it is estimated over half a million illegally imported used cars are on the roads, representing a significant drain on national revenue.

“This illegal trade is not just a statistic. It is a direct attack on our economy,” says Martina Biene, President of the African Association of Automobile Manufacturers (AAAM) and CEO of Volkswagen Group Africa: “It drains our fiscus between five and eight billion Rand every year in lost taxes. It undermines our local manufacturers and holds back our industrial development.”

Stellantis stand showing Fiat Panda parts that are made locally

The demand for used vehicles is primarily driven by affordability. High interest rates across many African nations, often reaching double digits, place formal new vehicle financing out of reach for a large portion of the population. Financial institutions also cite challenges with vehicle tracking and valuation as barriers to offering more accessible credit.

“The issue is that high interest rates in most countries are in the two digit levels, and it makes it very difficult for consumers to have access to affordable financing,” added Zanamwe. “This creates a cycle where low demand prevents the economies of scale needed for local factories to produce affordable new vehicles.”

The situation is exacerbated by the practices of some international exporters. Research indicates used vehicles from markets like Japan and Singapore are often sold at very low prices or even written off and shipped abroad, making it impossible for locally manufactured units to compete on price alone.

In response, industry players are exploring innovative solutions. Volkswagen’s mobility solutions program in Rwanda was highlighted as a case study. By offering ride-hailing, car-sharing and subscription services, the model provides access to mobility without the need for a large upfront purchase, effectively addressing the affordability issue through a different business model.

Ultimately, African leaders argue a cohesive policy environment is crucial. This includes finalising the AfCFTA’s rules of origin for automotive products, harmonising standards and developing policies that support localisation while simultaneously creating mechanisms for affordable vehicle asset financing. The success of the continent’s automotive industrialisation depends on its ability to navigate the complex interplay between ambition, consumer reality, and economic policy.

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