SOUTH African Deputy President Shipokosa Paulus Mashatile has called on Japanese automaker Isuzu Motors to leverage its strong presence in South Africa to expand manufacturing operations across the African continent, citing the African Continental Free Trade Area (AfCFTA) as a major opportunity for growth.
Speaking during a high-profile visit to Isuzu’s Fujisawa Plant in Tokyo, Mashatile emphasised that Isuzu’s fully-owned South African manufacturing facility positions the company uniquely to access markets across all 54 African nations that have signed the AfCFTA agreement.
“With the Africa Continental Free Trade Area, we have opened even more opportunities for Isuzu to export and do business in over 54 countries,” Mashatile told Isuzu executives. “The AfCFTA creates the largest single free trade area, with 1.3 billion people and a Gross Domestic Product of 3.4 trillion US dollars.”
Isuzu’s plant in Struandale, Gqeberha (formerly Port Elizabeth) in South Africa’s Eastern Cape Province currently produces 28,500 vehicles annually and serves dealerships in 26 African countries. It remains the automaker’s only fully-owned manufacturing facility outside Japan, with Isuzu operating through joint ventures or licensing agreements in other international markets.
The Deputy President highlighted South Africa’s strategic advantage as a manufacturing hub, noting that beyond the African market, Isuzu can export duty-free to the European Union under the SADC-EU Economic Partnership Agreement and to Japan under the Generalized System of Preferences.
Addressing concerns that have previously hindered manufacturing in South Africa, Mashatile assured Isuzu executives that the government has “dealt with energy issues that affected our economy” and is “addressing port and other infrastructure issues that affected exports.”
Isuzu has established itself as a model investor in South Africa, contracting 107 local suppliers with over 700 parts being manufactured domestically and integrated into Isuzu’s global supply chains. The company has also achieved the highest level of compliance with South Africa’s Broad-Based Black Economic Empowerment program.
Industry analysts suggest that the AfCFTA could be a game-changer for automotive manufacturing in Africa, with the potential for companies like Isuzu to establish additional assembly plants in strategic locations across the continent while maintaining South Africa as their primary manufacturing hub.
The visit forms part of South Africa’s ongoing efforts to attract and retain foreign direct investment in its automotive sector, which accounts for approximately 4.3% of the country’s GDP and employs over 110,000 people.
