Africa Automotive: All go for IATF 2025 with eyes on Auto Sector

With the ‘go’ button having been pressed on the Intra-Africa Trade Fair 2025 taking place in Algiers, Algeria in September next year, the countdown has begun towards an event expected to result in trade an investment deals exceeding US$44-billion.

Although only a sub-set of the entire IATF event, the Africa Automotive Show will play a large – and significant – part in the proceeedings given the intense activity in the automotive sector taking place throughout Africa that, together with full acceptance and implementation of the African Continental Free Trade Are (AfCTA) is helping to turn the continent into one large automotive hub.

Some 35000 attendees from more than 140 nations are expected to gather in Algiers for the Intra-African Trade IATF2025 and the week-long exhibition will feature 2 000 exhibitors from Africa and around the globe, showcasing goods and services to potential buyers and industry professionals.

Organised by the Government of Algeria under the theme ‘Gateway to New Opportunities’, the event will leverage the AfCFTA, which comprises around 1,4-billion people and a combined GDP of more than US$3,5-trillion. The biennial fair is run by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and AfCFTA Secretariat.

Chief Olusegun Obasanjo, Chair of the IATF Advisory Council and former Nigerian president, highlighted the fair’s impact: “The IATF has become a vital platform for fostering intra-African trade and investment by facilitating business interactions and providing access to trade and market information. With more than 70 000 visitors and more than 4 500 exhibitors at the last three editions, the fair has contributed $100-billion in trade deals. We encourage African businesses to seize this opportunity to expand their markets and engage with peers."

The event will host numerous key activities, including a trade exhibition, the Creative Africa Nexus (CANEX) programme, featuring exhibitions and summits on African fashion, film, music, literature, sport, and more.

An example of the burgeoning automotive activity is the recent announcement by Stellantis to expand its Middle East and Africa (MEA) footprint by launching the locally assembled Jeep Grand Cherokee L in Egypt. This milestone, achieved at the Arab American Vehicles (AAV) plant in Cairo, is a pivotal part of the automaker’s ‘Dare Forward 2030’ strategy.

“This marks a crucial moment for Stellantis in Egypt,” said Samir Cherfan, Chief Operating Officer of Stellantis MEA. “By restarting production at AAV, we are reaffirming our commitment to Egypt's industrial growth and aiming to solidify our leadership in the region. Our goal is to capture over 22% of the market by 2030.”

Cherfan revealed Stellantis’ ambitions to become the top player in the region, selling 1-million vehicles annually by 2030, with 35% of those being electric. The plan also includes achieving 90% local production autonomy, reinforcing the company’s position as the most regionally integrated automotive manufacturer.

The local assembly of the Jeep Grand Cherokee L not only supports Stellantis' vision but also highlights Egypt’s strategic role within its wider operations. This move strengthens the company’s ability to serve markets across the MEA, boosting local job creation and skills development.

While the Egyptian production will be for left-hand drive markets, Stellantis South Africa notes it is not inconceivable this could expand to right-hand drive markets particularly in Sub-Saharan Africa.

Hesham Hosni, Managing Director of Stellantis Egypt, noted: “Our long-standing partnership with the AAV plant is key to our success here. This relaunch reflects our confidence in Egyptian expertise and infrastructure."

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Africa Automotive - Short haul to Cairo

The road to the Intra Africa Trade Fair (IATF) may have hit a pothole with the late venue change from Abidjan to Cairo, Egypt but a strong turnout from South African business executives at a recent roadshow in Johannesburg confirmed a strong interest.

Indeed, as Mike Whitfield, President of the African Association of Automotive Manufacturers (AAAM) said during the panel discussion: “If we do not focus on competitiveness, the others out there are ready and moving fast.”

Mike Whitfield

While he was speaking specifically about the auto industry and the Africa Automotive Show, the comment could equally be applied across all spheres of business in this country.

Although backed up and supported by the Department of Trade and Industry (DTI), which talks a big game, that entity is still severely hampered by most of its key players on the critical injury list – Iscor, Eskom, Transnet etc.

Nevertheless, the DTI fully backs the IATF and the ongoing efforts to formally create a working African Continental Free Trade Area (AfCFTA) that will benefit South African business as well as the rest of Africa by stimulating trade, lowering entry barriers to business and creating job opportunities across the continent.

Dave Coffey the CEO of AAAM says “We believe the Africa Automotive Show is well timed as the automotive industry is gaining traction in Africa where we will see trading of vehicles between assembly hubs across the continent supported by the development of regional value chains.”

Panyaza Lesufi

Perhaps the biggest rev up to the business delegates came from Gauteng Premier, Panyaza Lesufi who said: “Less talk, more work. The days of celebrating agreements are over, the days of celebrating transactions are within us.

“If it is Africa's time, let that time be the time for everyone. We must not leave anyone behind. The time of talking is over, the time of implementation is now! The time of meeting to change or amend agreements is over, the time to strengthen business transactions is now.

“Count on us, not today but forever!”

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Colin-on-Cars - Driving Africa automotive forward

The African automotive business is driving forward and a Memorandum of Understanding (MOU) signed virtually between 12 automotive associations within the ambit of the EU-Africa Business Forum recently looks to accelerate the processes.

The automotive sector, whilst key for the industrialisation of Africa is often associated with several challenges including, persistent market fragmentation, lack of regulatory alignment between African countries and the two continents, industrial and trade policies not conducive to local and foreign investment, lack of access to finance for consumers, local suppliers and affordability.

Expand

However intra-African trade can be bolstered and diversified by developing a Pan African Auto Pact, which aims to expand the African new vehicle market from 1-million to 5-million units and connecting African regions for the common good.

A ‘coalition of the willing’ will see the development of manufacturing sites and allied industries and services – both for the OEM and supplier sector – thereby laying the foundation for Pan-African integrated automotive value chains, which will incorporate neighbouring countries to build a regional and continental production network.

Boost

The launch of the African Continental Free Trade Area (AfCFTA) gives a boost to pan-African trade and investment opportunities, especially for the automotive industry and creates the momentum to stimulate a European-African dialogue between policy makers and important stakeholders.

This was one of the catalysts that led to a joint initiative to develop an MOU amongst European and African Automotive Associations, which initially driven by the African Association of Automotive Manufacturers (AAAM), the German Association of the Automotive Industry (VDA) and the German-African Business Association (Afrika-Verein) has now grown into a cooperation between the 12 associations that signed the MOU, which has the support of both the African Union and the European Union.

Plan

The MOU encourages enhanced dialogue contributing to the development of a joint plan to grow the automotive sector in Africa, through integration into the global and European value chains resulting in quality jobs.

Whilst encouraging a favourable investment climate to support market integration and innovation and the joint creation of models of standardisation, harmonisation and safe mobility. Furthermore, it is intended to advance the debate about sustainability whilst considering alternative powertrains and digital solutions and to further develop affordable mobility solutions leading to a viable African vehicle market.

The MOU commits the 12 organisations to work jointly on several key priorities including:

- The setting-up of a permanent round table between the AU, EU, and industry associations in line with the spirit of an established European-African Business Network that will foster the dialogue between Africa and Europe.

- To request the EU and African countries Governments to pursue trade initiatives through the implementation of existing agreements to increase business opportunities and further expand EU-Africa trade in automotive products.

- It also commits to advance the integration of African companies into the global value chains and to support the building of the necessary infrastructure and logistics. This will include investment and growth opportunities provided for EU companies partnering with African companies and will result in supply chains being more easily accountable.

- The MOU further calls on the EU to enhance its support for the implementation of the African Continental Free Trade Area in view of favouring Africa’s industrialisation and the expansion of the African automotive market.

Importantly the MOU calls for governments to support knowledge transfer, provide financial resources and give political priority in establishing a pan-African production and trade system that will reinforce and expand existing African automotive value chains.

Support

Lastly it encourages the EU to support financially the development of sustainable and smart mobility and affordable vehicle financing solutions to increase the mobility of the population in African cities and support therefore infrastructure development.

Whilst also calling on public authorities to provide programs and financial support for research on alternative powertrains and the value chain of green technology solutions in Africa.

Commenting after the signing of the MOU, David Coffey the CEO of AAAM said: "The trade and investment climate in Africa can only be improved together. We are convinced Africa has great potential to develop a promising automotive industry that will provide long-term employment.

“The fact African and European associations have agreed on key points to further develop the industry on the continent is an important milestone. Now political representatives are to support this by creating the framework conditions for the industry to develop and grow."

Signatories of the MOU

African Association of Automotive Manufacturers (AAAM)

Dave Coffey, CEO

German-African Business Association (Afrika-Verein der deutschen Wirtschaft)

Dr. Markus Thill; Member of the Management Board

German Association of the Automotive Industry (VDA)

Andreas Rade, Managing Director

Kenya Association of Manufacturers (KAM)

Ashit Shah, Chairman Automotive Sector

Tunisian Automotive Association (TAA)

Myriam Elloumi, Vice President

National Association of Automotive Component and Allied Manufacturers (NACAAM), South Africa

Renai Moothilal, Executive Director

National Association of Automobile Manufacturers of South Africa (NAAMSA)

Mikel Mabasa, Chief Executive Officer

European Association of Automotive Suppliers (CLEPA)

Sigrid de Vries, Secretary General

European Business Council for Africa (EBCAM)

Dr. Markus Thill, Member of the Management Board AV

European Automobile Manufacturers’ Association (ACEA)

Eric-Mark Huitema, Director General

Nigeria Automotive Manufacturers Association (NAMA)

Tokunbo Aromolaran, Chairman

Automotive Assemblers Association Ghana (AAAG)

Jeffrey Peprah, President

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Colin-on-Cars - New dawn for Daimler Trucks

Michael Dietz

Daimler Trucks & Buses Southern Africa (DTBSA) will operate as a wholly independent business operation from December 01 as a dedicated commercial vehicle operation with its own finance company – and is investing R1-billion in doing so.

Mercedes-Benz will be a separate company looking after passenger cars and vans but manufacturing and assembly for both will remain at the East London production plant.

The separation is in line with the global direction being taken by Daimler AG and Michael Dietz, President and CEO DTBSA says: “This is indeed a massive turning point for us as DTBSA and a huge investment for the Southern Africa market. We have done some ground-breaking changes previously, like the establishment of DTBSA as a legal entity in 2019 and more recently the founding of our very own captive financial mobility services, Daimler Trucks Financial  Services (DTFS).

“I firmly believe the new set-up promotes the necessary focus into our core business, creates favourable conditions for us to be more competitive and accelerates the development of key technologies for us to continue to provide cutting-edge products and services to fulfil the special needs of our customers.

“It is without a doubt this independence is fully aligned with our growth strategy and further strengthens our foothold within the markets we operate in. As we gear up to a smooth transition, our commitment for all who keep Africa moving remains unchanged.”

An investment of up to R1-billion has been made available to ensure continuity in operation, adequate resources, and suitable working infrastructure for the DTBSA business. This new set-up will comprise of the Sales and Marketing, Customer Service & Parts (CSP), Own Retail, Manufacturing Plant, Value-added services which include; TruckStore, FleetBoard, Mercedes-Benz Uptime, Service24h, TruckParts, and FUSO Value Parts (FVP).

Building of a new corporate home in Centurion, Pretoria is scheduled to start soon and bring together all the facets of the new company with the exception of the manufacturing arm, which will will have the same level of access to the key production areas such as harbour, depots/storage centres, testing ground, and Training Academy as Mercedes-Benz.

Looking to the future, Dietz confirmed the fully electric eCanter was undergoing testing in real world operating scenarios with selected customers but added DTBSA would offer a balanced portfolio of product within the expanding electric vehicle sphere with combustion engines offered whenever a conventional powertrain is a key requirement.

Hanif Ahmed, the Chief Financial Officer for DTBSA added: “The aim is to provide unrivalled and dynamic products for our customers along with holistic solutions for both dealers and customers, all of which is driven by service delivery.”

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