African vehicle assemblers push for policy reforms to drive growth

ALGIERS, Algeria — African vehicle assembly executives are calling for stronger policy incentives and regional integration to expand medium and heavy vehicle production, saying the sector is crucial to trade, infrastructure and logistics growth across the continent.

At the 4th Intra-African Trade Fair (IATF2025) in Algiers, industry leaders pointed to the African Continental Free Trade Area (AfCFTA) as an opportunity to build regional hubs, reduce import dependence and create skilled jobs.

Ezra Mereng, General Manager of GF Vehicle Assemblies in Tanzania, said his company has expanded rapidly since launching during the pandemic. “We started with 50 units in 2020 and reached 4,515 units by 2025,” Mereng said. “We had a vision to go beyond buying and selling trucks. With six landlocked countries relying on Tanzania’s port, we saw the opportunity to assemble locally.”

GF Vehicle Assemblies now employs 250 people and works with brands including Hyundai, SMG and China’s FAW, with plans to add another manufacturer. Mereng said government-backed projects in mining, transport and construction are fueling demand for light and heavy trucks.

“The region has a huge opportunity for assembling plants,” he said. “Policy is the biggest enabler. Tanzania introduced a 10 percent levy favoring locally assembled vehicles over imports in 2024, and that has been a catalyst.”

Still, less than 15 percent of the firm’s raw materials are sourced locally. Mereng said greater supply-chain integration across Africa, combined with AfCFTA trade liberalization, could attract investors and reduce costs. “Once we get out of trade barriers, we can do much across the region,” he said.

Melouk Brahim, Executive at Algeria’s AGM Holdings, underscored both opportunities and hurdles. He cited Africa’s industrial potential but pointed to gaps in financing, customer data, and environmental standards. “The private sector’s confidence is there. We’ve convinced governments to support us, but financial services remain weak,” Brahim said. “We are crawling, and soon we will fly.”

AGM, with 239 billion US dollars in turnover and 26 subsidiaries, is investing in technology upgrades while urging governments not to overreach with unrealistic demands. “Authorities want robots they see on YouTube. We need gradual growth,” Mereng said.

Both executives agreed the combination of policy reforms, regional integration and sustained private investment will determine how quickly Africa can position itself as a hub for vehicle manufacturing.

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