South Africa’s automotive industry faces a pivotal transformation as Mercedes-Benz considers sharing its East London plant with China’s Great Wall Motor. This potential co-manufacturing deal highlights a broader shift in Africa’s most industrialized economy, where budget Chinese and Indian brands are rapidly gaining ground against traditional European, American, and Japanese manufacturers.
Chery has become the second-largest automaker in South Africa since entering the market in 2021 and is acquiring Nissan’s local assets. Mahindra is expanding production capacity, while Tata has returned after a lengthy absence. Currently, only one in three cars sold in South Africa is locally manufactured, dramatically down from 56% two decades ago.
Established automakers like Volkswagen are urging government intervention through improved tax incentives and policies to protect the domestic industry. Without swift action, manufacturers warn that South Africa’s shrinking industrial base could face further decline.
Meanwhile, Ghana has banned certain pasta imports following the inauguration of its first processing plant, aiming to protect local producers from smuggled competition. President John Mahama emphasized the importance of supporting domestic manufacturing, particularly for italia pasta typically served with the popular waakye dish.
