SA's Minister Parks Tau engages Algeria's automotive sector amid pressure from US tariffs

Minister of Trade, Industry and Competition, Parks Tau, will be engaging with his Algerian counterpart this weekend in a bid to strengthen mutually beneficial trade opportunities and possible component manufacturing partnerships. 

This comes as Tau has been criss-crossing the globe of late as he led a high-level delegation to Japan and India on working visits to deepen bilateral cooperation last month, amid South Africa's struggle with the 30% tariffs from the United States. 

South Africa’s steel and automotive industries are among the most impacted sectors by the implementation of the US export tariffs, and the ripple effects are already starting to be felt in the country, with industrial employers like Ford, Glencore, and ArcelorMittal SA cutting thousands of jobs.

Algeria would be a significant growth market for South African produced vehicles and auto parts as its automotive industry is undergoing significant growth and transformation, marked by major foreign partnerships.

Key developments include new assembly plants for Fiat and Chery, increasing local component integration, and the establishment of a national network for auto parts manufacturers to support this industrial expansion. 

Tau arrived in Algiers, Algeria, on Friday for the fourth Intra-African Trade Fair (IATF 2025) and he will participate in the Ministerial Panel on the African Continental Free Trade Area (AfCFTA) and the Automotive Forum.

He will conclude his visit by engaging his Algerian counterparts on bilateral trade and investment matters.

Tau said the two countries signed multiple agreements, including an agreement on economic cooperation during the South Africa State Visit to Algeria in December 2024.

“The Ministerial session highlighted the importance of forming a dedicated team composed of representatives from both countries to work on agreed action plans for the implementation of the agreement. This trade fair offers us an opportunity to accelerate this implementation,”  he said.

Tau explained that the automotives sector was identified as one of the priority sectors of cooperation between the two countries.

“The focus is on how South African companies can partner with Algerian companies along the automotive value chain. We want to emphasise the importance of engaging in mutually beneficial trade opportunities and possible component manufacturing partnerships,” Tau said.

Tau is leading a delegation of 30 South African businesses who are showcasing their products and services, and will also promote trade and engage his counterparts at Africa’s premier trade and investment event.

He will also launch the South African Pavilion stand and meet with the South African automotives sector, which includes Original Equipment and Component Manufactures (OECM).

Meanwhile, the Premier Dr Phophi Ramathuba is also leading the Limpopo delegation to the IATF2025 comprising the MEC for Agriculture and Rural Development, Nakedi Kekana, and senior officials of the Limpopo Economic Development Environment and Tourism (LEDET) and Limpopo Economic Development Agency (LEDA). 

Limpopo has brought along 14 business representatives from the province in the field of tourism, film-making, furniture making, cosmetics, fashion, sportswear, taxidermy and visual arts. 

“We are continuing on our paths to grow our investment portfolio through these fairs and interactions. We see a greater role as well for our local businesses to be exposed to international trends, practices and businesses,” Ramathuba said. 

The Premier will also participate in the discussion at the African Sub-Sovereign Governments Network (AfSNET) conference and deliver a paper on unveiling opportunities from select African and Caribbean Sub-Sovereigns.

BUSINESS REPORT