Team South Africa’s program had moved forward with a business engagement held on 6th of September which was central to explicitly linking local industry policy with the integration of Africa’s continental market integration. This took place at the International Automotive Trade Fare (IATF). This session, titled “South Africa fostering local automotive production and accelerating investment in the African Continent through AfCFTA,” assembled various stakeholder in the same place. These included the dtic, industry agencies like AIDC, investment zones such as East London IDZ and Tshwane Automotive SEZ, OEMs, and senior government speakers, including Deputy Minister in the Presidency Mr. Kennet (Kenny) Morolong. Their collective aim was to advocate for the idea that Africa’s automotive future relies on coordinated policy, investment incentives, and intra- African market access.
South Africa’s presentation at IATF reimagines the African Continental Free Trade Area (AfCFTA) as an industrial tool, rather than solely a tariff-reduction agreement. This framework can facilitate expanded market access for South African-made vehicles and components, justify localisation and scale investments by Original Equipment Manufacturers (OEMs), and foster commercially viable cross-border supply chain integration. The private sector’s interest in an “African production-to-African market” model was evident at IATF. For instance, Isuzu has publicly announced intentions to establish South Africa as a hub for African truck production, demonstrating an OEM strategy that becomes commercially logical only with clear continental demand and unhindered trade routes.
Yet the AfCFTA alone will not eliminate frictions. Non-tariff barriers, inconsistent standards, weak intra-continental logistics and illicit trade continue to constrain scale. South Africa’s representatives at IATF emphasised realistic sequencing: pair AfCFTA market access with harmonised standards, regional industrial cooperation on components, targeted trade remedies, and selective financial instruments to derisk greenfield investments.
No great regional project is immune to facing hurdles. AfCFTA is a means to shift Africa in its entirety to industrialization through infrastructure and manufacturing of free trade. Reducing trade tariffs for the exchange of goods and services on borders between neighbouring nations won’t cut it. Improving the means of transport through roads and railways also has a role. South Africa is looking for ways to make it a hub for the Automobile manufacturing sector to grow the economy and create jobs. Inter-Africa trade through AfCFTA could alter the trajectory of the entire southern African region. The establishment of localization through OEMs can decrease the dependence of imported vehicles such as trucks allowing their manufacture on home soil.
Logistics, non-tariff barriers, inconsistent standards, and trade on the black market for illegal goods remains a problem that a unified customs service won’t be able to solve. The creation of such regional institutions and oversight will come to nothing unless the lack of or inadequacy of infrastructure and logistics is addressed. Environmental concerns and conservation need to be also be given attention.
In a major step toward strengthening bilateral economic relations, MTN Nigeria on Thursday, October 23, 2025, hosted the Nigeria–South Africa Economic Diplomacy Roundtable, bringing together senior government officials and business leaders from both nations to explore new pathways for collaboration. The high-level event, held at the MTN Rooftop in Lagos, was themed “Africa’s Twin Engines: How Nigeria–South Africa Relations Can Position Africa as a Global Middle Power.” It was convened by South Africa’s Department of International Relations and Cooperation (DIRCO) with the support of the Lagos State Government. Discussions at the roundtable focused on deepening trade and investment ties, promoting regional integration, and driving sustainable growth through the African Continental Free Trade Area (AfCFTA). In his keynote address, Lagos State Deputy Governor, Dr. Kadri Obafemi Hamzat, described Lagos as a critical hub for African collaboration.
He stated: “Lagos remains Africa’s commercial nerve centre where trade, talent, and technology intersect. Strengthening South Africa–Nigeria cooperation is not only strategic for both economies; it is essential for the continent’s collective progress.”
This partnership between South Africa and Nigeria could shift the economic balance in Africa from Europe to a more equal footing. The telecommunications network company MTN has long had an interest in being forward thinking and pushing boundaries. The cooperation between South Africa and Nigeria could lead to an understanding on the importance of having the right infrastructure and diversification in both economies. The partnership will lead to the propulsion of economic growth in both nations. The cards have to be played right but the path have been lain. Lagos is Nigeria’s largest city, main port and industrial and business hub. For South African business to partner with Lagos and form a major artery network will propel economic integration across Africa. At the root of this is the budging trade and investment ties that will lead to a mutually beneficial relationship.
South Africa being located at southern tip of the continent strands two of the world’s major thoroughfares, the Indian and the Atlantic Oceans. As Africa’s largest most diverse economy a partnership with Nigeria and the metropolis of Lagos in particular will see the exchange of ideas, currencies, trade and the growth of the tech sector and industry.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
