Alamein:Egypt South Africa is advocating for enhanced regional cooperation and increased investment to develop a competitive African automotive industry, which could potentially create jobs, expand trade, and strengthen Africa's position in the global market.
According to South African Government News Agency, Minister of Trade, Industry and Competition Parks Tau emphasized the need for translating Africa's automotive ambitions into tangible investment projects during his address at the Africa Automotive Investment Forum. This event, hosted by Afreximbank at the Rixos Hotel Alamein, was part of the inaugural Alamein Africa Forum.
The Minister highlighted the necessity for collaboration among governments, financiers, vehicle manufacturers, suppliers, and investors to develop feasible projects, enhance regional value chains, and boost investment in automotive manufacturing. He also underscored the role of the African Continental Free Trade Area (AfCFTA) in expanding intra-African trade and supporting industrial growth.
Africa's automotive production is currently about 1.3% of the global output, with South Africa and Morocco leading the continent's vehicle production. Both countries collectively contributed to over 91% of Africa's total vehicle production in 2025. Long-term goals include increasing vehicle production in Africa to between four and five million units by 2035, with a focus on new energy vehicles.
The Minister also discussed a proposed Automotive Pact between the Southern African Customs Union (SACU) and Egypt. This initiative aims to foster economies of scale, encourage complementary production, and boost intra-African trade in vehicles and components. It seeks to create a viable foundation for supplier development and the growth of feeder industries.
Through the South African Automotive Master Plan 2035, efforts are underway to expand production, deepen local content, and increase participation by black-owned and women-owned firms. The country is also pursuing investments across the automotive value chain, including vehicle assembly and infrastructure development.
Minister Tau noted Egypt's significance as a partner due to its industrial capacity, large domestic market, and strategic geographic location. South African firms are prepared to invest in various aspects of the automotive sector within African markets.