By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The Auto Magazine
  • Home
  • Auto Shows
    Auto ShowsShow More
    Driving Trade Forward: AfCFTA, AGOA,BRICS and the Tariffs – All On The Menu At Automechanika CEO Breakfast
    May 9, 2025
    LDV (Maxus as Known in China) Makes a Bold Statement at Shanghai Motor Show
    April 30, 2025
    Upcoming OMODA C3 redefines the crossover with cyber-mecha aesthetics
    April 29, 2025
    Mazda Unveils MAZDA EZ-60 New Electric SUV at Auto Shanghai 2025 
    April 29, 2025
    Chery unveils HIMLA brand at 2025 Shanghai Auto Show
    April 28, 2025
  • Bikes
    BikesShow More
    BMW Motorrad presents the new R 18 models
    January 22, 2025
    BMW Motorrad presents the BMW Concept F 450 GS
    November 5, 2024
    BMW Motorrad presents the new bikes
    November 1, 2024
    24YM HONDA NX500
    October 15, 2024
    BMW Motorrad presents the new BMW C 400 GT and BMW C 400 X
    October 15, 2024
  • News
    NewsShow More
    Mahindra remains auto enthusiasts’ top choice
    May 9, 2025
    GAC Motor Sets the Pace for 2025 in South Africa
    May 8, 2025
    GR YARIS: NOW MORE POTENT AND AVAILABLE WITH AUTOMATIC TRANSMISSION
    May 8, 2025
    Volkswagen adds a new derivative to the Amarok model line-up
    May 8, 2025
    Toyota Land Cruiser Prado scoops Adventure Utility award at SA Car of the Year competition
    May 8, 2025
  • Concepts
    ConceptsShow More
    Audi unveils Q6 e-tron offroad concept
    January 28, 2025
    CITROEN PRESENTS C5 AIRCROSS CONCEPT
    October 15, 2024
    Lotus Unveils Theory 1:  The Future Of Intelligent Performance
    September 23, 2024
    First sketches of Škoda Enyaq RS Race
    May 3, 2024
    W16 Mistral: the art of bringing Bugatti’s ultimate roadster to life
    January 24, 2024
  • EVs
    EVsShow More
    Enviro Automotive Unleashes Cutting-Edge 4×4 EVs and Unprecedented Price Reductions
    May 9, 2025
    Mazda Unveils MAZDA EZ-60 New Electric SUV at Auto Shanghai 2025 
    April 29, 2025
    RANGE ROVER ELECTRIC PROTOTYPES EXCEL IN LATEST WINTER TESTING AND DEVELOPMENT CYCLE
    April 25, 2025
    ELECTRIFIED LUXURY REDEFINED: THE ALL-NEW LEXUS ES
    April 24, 2025
    Volvo EX90 claims World Luxury Car title
    April 17, 2025
  • Motosport
    MotosportShow More
    BEHIND THE SCENES: ARCHIE RUTHERFORD ON WHAT IT TAKES TO BRING THE W2RC TO SOUTH AFRICA
    May 9, 2025
    TGR ready for South African Safari Rally as W2RC resumes
    May 8, 2025
    Killarney Raceway skidpan upgraded
    May 8, 2025
    TGRSA HEADS TO GQEBERHA FOR ROUND 3 OF SATC CHAMPIONSHIP
    May 7, 2025
    GR CUP GEARS UP FOR ROUND 3 AT GQEBERHA’S ALDO SCRIBANTE CIRCUIT
    May 7, 2025
  • Trucks & Buses
    Trucks & BusesShow More
    Volvo reaches milestone with 5,000 electric trucks sold worldwide
    April 29, 2025
    HINO ONCE AGAIN ANSWERS FARMERS’ CALL FOR HELP
    April 24, 2025
    Daimler Truck Southern Africa appoints Wolf Edmayr as the General Manager of TruckStore
    March 28, 2025
    ISUZU Motors South Africa Celebrates 60 Years of Isuzu Trucks in South Africa
    March 3, 2025
    Itumeleng Segage, General Manager of Hino South Africa
    HINO SCORES MORE THAN 99% IN ALL FOUR CUSTOMER CARE SURVEY CATEGORIES
    February 5, 2025
  • Reviews
    ReviewsShow More
    ISUZU MU-X Range Refreshed with Increased Luxury, Style and Safety
    May 5, 2025
    Tow Like a Pro with the Ford Ranger
    April 10, 2025
    MEET THE ALL-NEW LEXUS GX: A PREMIUM OFF-ROADER REIMAGINED
    April 8, 2025
    Aston Martin Vanquish Volante: The world’s fastest, most powerful front-engine convertible
    March 29, 2025
    The legend grows: introducing the Toyota Hilux Hybrid 48v and GR SPORT II
    March 29, 2025
  • Tech
    TechShow More
    Chery unveils AiMOGA: Revolutionising the car-buying experience through intelligent robotics
    April 24, 2025
    Volvo Cars uses AI and virtual worlds with the aim to create safer cars
    March 21, 2025
    Chery drives AI innovation with DeepSeek partnership
    March 3, 2025
    Stellantis Unveils STLA AutoDrive
    February 20, 2025
    Mercedes-Benz and Google Partner on AI-powered Conversational Search within Navigation Systems
    January 14, 2025
Hot News
Enviro Automotive Unleashes Cutting-Edge 4×4 EVs and Unprecedented Price Reductions
Driving Trade Forward: AfCFTA, AGOA,BRICS and the Tariffs – All On The Menu At Automechanika CEO Breakfast
BEHIND THE SCENES: ARCHIE RUTHERFORD ON WHAT IT TAKES TO BRING THE W2RC TO SOUTH AFRICA
Mahindra remains auto enthusiasts’ top choice
TGR ready for South African Safari Rally as W2RC resumes
Motosport

ALL-NEW FORD MUSTANG GT3 AND GT4 RACE CARS TO COMPETE AT DAYTONA

Latest News

BMW Group relies on regional supply chain to expand e-mobility in North America

Latest News

Fleet Safety Awards entry deadline extended

Motosport

DAY-NIGHT SA ENDURANCE CHAMPIONSHIP SET TO THRILL EASTERN CAPE FANS

Font ResizerAa
The Auto MagazineThe Auto Magazine
  • Home
  • Auto Shows
  • Bikes
  • News
  • Concepts
  • EVs
  • Motosport
  • Trucks & Buses
  • Reviews
  • Tech
Search
  • Home
  • Auto Shows
  • Bikes
  • News
  • Concepts
  • EVs
  • Motosport
  • Trucks & Buses
  • Reviews
  • Tech
Follow US
Crafted by Intellegere Media. © 2024 The Auto Magazine. All rights reserved.
Auto Shows

Driving Trade Forward: AfCFTA, AGOA,BRICS and the Tariffs – All On The Menu At Automechanika CEO Breakfast

Itumeleng Garebatshabe
Last updated: May 9, 2025 10:44
By Itumeleng Garebatshabe
5 Views
5 Min Read
Share
5 Min Read
SHARE

On Thursday, 8 May, leading figures in the automotive industry met at the Centurion Country Club for another Automechanika CEO breakfast event – “The African Connection” -, hosted by Messe Frankfurt South Africa.

“As we navigate shifting trade agreements, tariffs, and international relations, South African automotive businesses are actively seeking new partnerships and market opportunities,” said Michael Dehn, Managing Director at Messe Frankfurt. “The discussions taking place at these events reflect the current trends in the industry. Companies are adapting to rapid change and repositioning themselves within evolving trade frameworks, such as the African Continental Free Trade Area (AfCFTA), African Growth and Opportunity Act (AGOA) and among Brazil, Russia, India, China and South Africa (BRICS) countries,” added Dehn.

Key Components

Recent US tariff impositions have had a significant impact on the automotive sector, with 25% tariffs now applied to vehicles and vehicle components (implemented in March and May 2025, respectively), alongside a 10% baseline tariff on all imports.

Prior to the implementation of the new regulations, 99% of vehicles and automotive components from South Africa entered the US under the auspices of the AGOA, benefiting from duty-free treatment.

The sector is a key component of South Africa’s export economy, with vehicles and parts accounting for 15% of the country’s total exports to the United States, South Africa’s second largest export market.

Unreciprocal

During her presentation, Dr. Paulina Mamogobo, Chief Economist at NAAMSA (the Automotive Business Council), explained that the EU is still the major export destination from South Africa, accounting for over 76% of automotive exports. The looming US tariffs already had a rather preemptive impact on Q1-2025 numbers as exports to the US reduced from 6% in 2024 to 2% in Q1-2025. However, this reduction was compensated by other export destinations. Further details will be announced by NAAMSA during their launch of the Automotive Trade Manual on May 15th.

Mamogobo stated that the AfCFTA is a strategic response to these challenges, creating a $3.4 trillion market across 44 African countries by eliminating tariffs and boosting intra-regional trade. However, she noted that infrastructure gaps remain a significant challenge to fully realising this potential.

Ronel Oberholzer, Head of Sub-Saharan Africa Economics at S&P Global Market Intelligence, explained that the global automotive landscape is further complicated by China’s oversupply of vehicles (especially EVs) potentially getting into African markets, creating direct competition for South African manufacturing, while India’s low-cost advantage intensifies competitive pressures. In her view, the BRICS countries are not necessarily new markets for South African finished goods, but rather source of further investments into Africa.

Jenny Tala, Director Southern Africa: Germany Trade & Invest stated that the tariffs imposed by the US effectively nullify the benefits of the AGOA, and that this poses a threat to South Africa’s automotive manufacturing competitiveness. Tala recommended to diversify export markets by expanding regional and international trade relations.

Duane Newman, Partner: EY South Africa demonstrated the potential benefits for South Africa of global trade tensions between major automotive markets, particularly in the context of the Trump administration’s protectionist policies. The country is poised to experience heightened investment, as multinational manufacturers seek to diversify their production away from Mexico and China. Newman also stated that the newly reduced focus of the US administration on NEV’s could benefit South African manufacturers, who are still majorly producing ICE vehicles.

However, Donald MacKay, CEO: XA Global Trade Advisors cautioned that Africa’s automotive industry is faced with the challenge of navigating infrastructure limitations, including underdeveloped road and rail networks that result in significant transportation costs. Rail transport, though five times more expensive than water transport, remains half the cost of road freight, highlighting the need for infrastructure investment to support automotive trade across the continent.

On-trend

“While it is impossible to predict exactly what will happen next in this volatile landscape, I am confident that our exhibitions will continue to be the place where these critical business connections are made,” continued Dehn.

“In the current climate of global economic turbulence, exhibitions such as Automechanika Johannesburg are instrumental in shaping the emerging global trade landscape,” he concluded.

TAGGED:AfCFTAAfrican Continental Free Trade AreaAfrican Growth and Opportunity ActAGOAAutomechanikaBRICSEY South AfricaGermany Trade & InvestnaamsaS&P Global Market IntelligenceThe African ConnectionXA Global Trade Advisors

Sign Up For Daily Newsletter

Stay Updated! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Whatsapp Whatsapp LinkedIn VKontakte Telegram Email Copy Link Print
Share
ByItumeleng Garebatshabe
Editor
Follow:
Itumeleng is the Managing Editor of The Auto Magazine. He is a tech and car enthusiast

Follow US

FacebookLike
XFollow
InstagramFollow
YoutubeSubscribe
TiktokFollow
TelegramFollow
Google NewsFollow
LinkedInFollow

You Might Also Like

Latest News

naamsa RELEASES OCTOBER 2023 STATS, AWAITS POLICY FOR NEW EVs

By Itumeleng Garebatshabe
November 1, 2023
Latest News

naamsa RELEASES MARCH 2025 NEW VEHICLE SALES STATS

By Itumeleng Garebatshabe
April 1, 2025
Latest News

OMODA and JAECOO soar to new heights on SA’s sales charts

By Itumeleng Garebatshabe
October 3, 2024
Latest News

naamsa RELEASES OCTOBER 2024 NEW VEHICLE SALES STATISTICS

By Itumeleng Garebatshabe
November 5, 2024
Latest News

naamsa RELEASES JUNE 2024 NEW VEHICLE SALES STATISTICS

By Itumeleng Garebatshabe
July 2, 2024
Latest News

naamsa RELEASES APRIL 2024 STATISTICS

By Itumeleng Garebatshabe
May 6, 2024

The Auto Magazine

  • Advertise
  • About Us
  • Contact
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
  • Bikes
  • Electric Vehicles
  • Trucks & Buses
  • Auto Shows
  • Latest News
  • Motosport

Crafted by Intellegere Media. All rights reserved. 2024

Don't not sell my personal information
Join Us!
Subscribe to our newsletter and never miss our latest news, podcasts etc.

Zero spam, Unsubscribe at any time.
adbanner