Africa’s automotive growth offers South Africa new trade opportunities amid global headwinds
South Africa’s automotive sector is navigating a shifting global trade environment marked by rising competitive pressures, supply chain disruptions, and new policy shocks, including the 30% US tariff on South African imports (including exports of vehicles and parts). These developments threaten export competitiveness and highlight the sector’s vulnerability to market concentration.
However, according to Luthando Vuba, Executive Head of International Trade at Business and Commercial Banking, Standard Bank Group, “The African Continental Free Trade Area (AfCFTA) is unlocking unprecedented opportunities for South African manufacturers and suppliers to deepen their presence in high-growth markets across the continent. Emerging automotive hubs in Morocco, Nigeria, Ghana, Kenya and Egypt are driving demand for South African components, from engine parts and tyres to Electric Vehicles-related technologies.”
Latest data from the National Association of Automotive Component and Allied Manufacturers (NAACAM) underscores both the sector’s resilience and the work ahead. In May 2025, motor vehicle, parts, and accessories manufacturing contracted by 6.7%, contributing to a 0.6 percentage point drag on total manufacturing output. Yet sales grew 3.9%, supported by robust aftermarket demand, increased exports to non-U.S. markets, and steady performance of key model lines. In 2023, Africa imported R42.8 billion worth of South African automotive components, making it the country’s second-largest regional export destination after the EU.
The broader market outlook points towards growth of Africa’s automotive sector, which is projected to grow from the US $21.07 billion reported in 2024 to US $33.14 billion by 2033, at a compound annual growth rate of 5.16%. South Africa accounted for 28.4% of this market in 2024, underpinned by its manufacturing scale and export capability. This highlights the regions automotive supply chain as a considerable market for South African suppliers.
Vuba says that with the framework for new growth being created by AfCFTA and the agreement highlighting the automotive sector as one of the key areas for boosting intra-African trade and economic integration, success will depend on agility.
“Exporters will need the tools to diversify markets, strengthen supply chains and stay competitive in a rapidly changing environment. The continent's abundant natural resources and strategic positioning in the global supply chain, provides a unique opportunity for a transformation of the sector. We hold vital raw materials that are essential for modern automotive manufacturing, and these include copper, cobalt, bauxite, and lithium, positioning Africa as a crucial player in the global automotive ecosystem.”
“We are proud to support the NAACAM Show 2025, an initiative that aligns with our purpose of driving Africa’s growth. Our involvement underscores Standard Bank’s commitment to enable businesses to seize emerging opportunities as they diversify their markets and strengthen their resilience in a changing global trade environment”, says Leigh-Anne De Witt, the Head of Business Banking Coverage (Eastern Cape) at Business & Commercial Banking, Standard Bank South Africa.
Through its various trade solutions, Standard Bank empowers businesses in the automotive value chain to expand their reach, unlock new partnerships and efficiently compete on a global scale. Through its Trade Suite, the bank offers exporters integrated solutions such as trade finance, supply chain finance, documentary trade instruments, international payment capabilities, logistics support, and market intelligence, helping businesses manage risk, improve cash flow, and expand into new markets with confidence.
With its sponsorship, Standard Bank supports NAACAM’s role in connecting industry leaders, policymakers, and exporters to foster growth in South Africa’s automotive value chain. This forms part of the bank’s commitment to enable businesses to capitalise on trade opportunities, diversify markets, while building resilience in key economic sectors.
These are the themes central at NAACAM Show 2025 that is taking place from Wednesday, the 13th and Thursday, the 14th of August 2025 in Nelson Mandela Bay, where automotive leaders are exploring strategies to secure South Africa’s competitive position in expanding the automotive value chain.