The automotive sector in South Africa is facing challenges in the global trade environment, with increasing competition, supply chain disruptions, and new policy shocks such as the 30% US tariff on South African imports. Despite these obstacles, there are opportunities for growth and expansion, particularly with the African Continental Free Trade Area (AfCFTA) opening up new markets for South African manufacturers and suppliers.
Luthando Vuba, Executive Head of International Trade at Standard Bank Group, highlights the potential for South African components in emerging automotive hubs across Africa. The sector has shown resilience, with sales growing and exports to non-US markets increasing. Africa imported R42.8 billion worth of South African automotive components in 2023, making it a key export destination for the country.
The future looks promising for Africa’s automotive sector, with projected growth from US $21.07 billion in 2024 to US $33.14 billion by 2033. South Africa’s manufacturing scale and export capability make it a significant player in the regional market. The AfCFTA agreement emphasizes the importance of the automotive sector in boosting intra-African trade and economic integration.
Standard Bank is supporting the NAACAM Show 2025 to help businesses in the automotive value chain seize opportunities and strengthen their resilience. Through trade solutions like trade finance, supply chain finance, and market intelligence, the bank empowers businesses to expand their reach and compete globally. The sponsorship of NAACAM’s event aligns with Standard Bank’s commitment to enabling businesses to capitalize on trade opportunities and diversify markets.
The NAACAM Show 2025, taking place in Nelson Mandela Bay, is a platform for industry leaders to discuss strategies for securing South Africa’s competitive position in the automotive value chain. It is a crucial event for connecting policymakers, exporters, and industry leaders to foster growth and innovation in the sector.
In conclusion, the automotive sector in South Africa faces challenges but also opportunities for growth and expansion. With the support of initiatives like the NAACAM Show 2025 and the AfCFTA agreement, businesses in the automotive value chain can thrive and contribute to the country’s economic development.
