Algiers IATF 2025 becomes crucible for Africa's automotive revolution

The sprawling exhibition halls of the Palais des Expositions in Algiers, host to the 2025 Intra-African Trade Fair (IATF), are typically a cacophony of deal-making. But this year, beneath the buzz, a more profound, industrial hum is resonating. It is the sound of a continent meticulously assembling the pieces of its long-awaited automotive revolution, moving decisively from merely supplying raw minerals to building complete, home-grown vehicles.

If previous trade fairs laid the blueprint, IATF 2025 is where Africa is pouring the foundation. A central theme, echoed in keynote addresses, panel discussions, and bilateral agreements, is the urgent and synergistic drive to intertwine two critical economic pillars: raw material beneficiation and the development of a fully integrated continental automobile value chain.

"This is no longer about ambition; it is about architecture," declared Professor Benedict Oramah, President of the African Export-Import Bank (Afreximbank): "We are here in Algiers to design the structural beams that will connect our lithium mines in Zimbabwe and Mali, our cobalt deposits in the DRC, our platinum group metals in South Africa, and our vast iron ore reserves, directly to vehicle assembly plants in Morocco, South Africa, Ghana and Algeria itself. The era of exporting raw ores only to import finished cars at exorbitant costs is, finally, closing."

From Lithium Pit to Battery Pack: The Local Value Proposition

A flagship report titled "The Integrated African Automotive Roadmap: A Case for Local Content," provides a stark data-driven analysis. It reveals while Africa produces over 60% of the world’s cobalt, manganese and platinum—all critical for catalytic converters and electric vehicle (EV) batteries—it captures less than 5% of the final value of these components when they are installed in a car.

The solution, as championed by multiple panels, is in-situ beneficiation. "We are not just talking about smelting," explained Dr. Naledi Pandor, South Africa's Minister of International Relations and Cooperation, during a ministerial roundtable held before the IATF.

"We are talking about the entire chain. Why can the DRC not host precursor cathode active material (pCAM) plants? Why can Namibia not house lithium hydroxide conversion facilities? Why can South Africa not be a continental hub for battery cell manufacturing and assembly?"

Evidence of this shift is materializing on the IATF exhibition floor. Instead of only raw mineral exporters, national pavilions from the Democratic Republic of Congo, Zambia, and Nigeria are showcasing investment opportunities for mid-stream processing plants.

A memorandum of understanding signed between the DRC’s state-owned mining enterprise Gécamines and a consortium of African investors aims to establish the continent's first large-scale pCAM plant, a direct move to capture more value before the materials are shipped.

The Automobile Value Chain: Building the "African Car"

Parallel to the mining discourse is a palpable excitement in the automotive pavilions. The African Continental Free Trade Area (AfCFTA) is the engine making this integrated vision possible. By significantly reducing tariffs on intra-African trade in components and vehicles, it makes continent-wide supply chains financially viable.

Algeria, the host nation, is positioning itself as a central hub. The recent finalisation of a multi-billion-dollar investment deal between Algeria’s National Vehicle Manufacturing Company (SNVI) and a major Chinese EV manufacturer includes a clause mandating that 40% of the vehicle's content, starting from year three of production, must be sourced from within Africa. This is a game-changer.

"This clause forces the creation of a supplier network," said Karim Boutiba, an automotive industry analyst attending the fair. "It means we will see investments not just in assembly, but in foundries for engine blocks, plants for wiring harnesses, glass production, tire manufacturing, and seat assembly—all spread across different African countries based on their competitive advantages. Ghana might specialize in aluminium wheel production, Tunisia in electronics and Kenya in upholstery textiles."

The "African Car" is no longer a myth. Kenya’s Mobius Motors is exhibiting its rugged, utility-focused SUV, designed for African roads and now incorporating battery packs from a new Kenyan start-up using regional cobalt. South Africa’s NAAMSA (National Association of Automobile Manufacturers of South Africa) is showcasing a prototype electric bakkie (pickup truck) whose battery cells are sourced from a new facility in Botswana.

Challenges on the Road Ahead: Infrastructure, Skills, and Policy

The optimism in Algiers is tempered by a pragmatic recognition of the hurdles. Multiple published working papers from the Afreximbank Trade Research programme highlight three critical challenges:

1. Infrastructure: Inconsistent port efficiency, unreliable rail links, and costly road transport continue to hamper just-in-time manufacturing, which is crucial for auto assembly. "You cannot stop a production line because a container of steering columns is stuck at a port for three weeks," one manufacturer noted anonymously.
2. Skills Gap: The leap from low-value extraction to high-value, precision manufacturing requires a massive upskilling of the workforce. Technical training partnerships between established German automakers and African technical colleges were a prominent feature of the Fair's side agreements.
3. Policy Harmonization: While the AfCFTA provides the framework, individual countries must harmonize automotive policies, standards, and certification processes. A car approved for sale in Egypt should not need two years of re-testing to be sold in Angola.

A Unified Vision Forged in Algiers

The consensus emerging from IATF 2025 is that the path forward is one of collaborative sovereignty. No single nation can build the entire value chain alone. The future lies in strategic complementarity.

"The message from Algiers is clear," summarized Algerian Industry Minister Ali Aoun. "We will no longer be a collection of isolated markets competing for foreign investment crumbs. We are one integrated market. Our strategy is to use our collective raw material wealth not as an end, but as the foundational capital to build our own industrial base. We are not just opening a trade fair; we are starting the ignition on Africa's industrial engine."

As the Fair concludes, the deals signed here—from mineral processing to auto parts manufacturing—suggest that the African automotive industry is shifting gears. It is moving from a scattered collection of import-dependent assembly plants towards a truly integrated, continent-wide ecosystem, finally turning the continent’s mineral wealth into a springboard for sustainable industrialisation and economic sovereignty. The road from the mine to the showroom is being paved, and it runs straight through Algiers.