/ 6 February 2026

High tariffs stifle Africa’s trade potential, warns Isuzu CEO

Billy Tom
Isuzu Motors South Africa chief executive chief executive Billy Tom. (Isuzu)

As tariffs bite across the continent, Isuzu Motors South Africa (IMSAf) chief executive Billy Tom, used the company’s 2026 IMSAf address on Wednesday to highlight Africa’s untapped potential and the urgent need to improve intra-continental trade.

“On the question of tariffs, our business is around the African continent,” said Tom. “And, the continent is quite big enough. There is a huge opportunity to grow the continent and we’ve set our business around that.”

While global markets offer opportunities, high tariffs and cross-border logistics costs continue to constrain African trade. In some cases, he said, exporting vehicles beyond the continent is cheaper than shipping them between neighbouring African countries.

“The continent poses a huge opportunity but the continent has not been geared to trade with itself. It’s quite expensive to do business on the continent. Sometimes it’s easier to export a vehicle to the Middle East and take it to another African country. The inter-part is proving to be difficult.

Tom noted that these challenges highlighted the urgency of fully implementing the African Continental Free Trade Area, which promises to reduce trade barriers and harmonise trade rules, even as tangible progress has remained limited. “We’ve got to find solutions to making it cheaper to do business.”

Despite these obstacles, Isuzu has continued to expand its footprint across Africa. In 2025, IMSAf exported 5 371 vehicles to continental markets, a 4.5% increase compared to 2024 while domestic sales rose 12.2% to just over 26 000 vehicles.

Tom said this growth shows the company’s role as a regional manufacturing and export hub. “Our manufacturing base in the Eastern Cape goes beyond being just an asset for Isuzu Motors Limited. It plays a meaningful role in supporting jobs, skills development, and economic resilience in the region.”

He said that Isuzu’s approach is to focus on its core competency in commercial and life-commercial vehicles, rather than competing across all segments. The bulk of its operations are business-to-business, supplying fleets and commercial operators, with growing consumer sales often stemming from exposure through business use.

“Someone experiences our product in the business, then they want to take it for themselves,” Tom said.

The company also emphasises total cost of ownership over upfront discounts, particularly for fleet operators. Tom warned that cheap vehicles with high maintenance costs and poor resale value can ultimately cost more than they save.

“You can buy this thing close to nothing, but then it costs you a fortune to maintain it. Then it goes down a lot. Then you lose more than that discount,” he said.

Craig Uren, the executive vice president of revenue generation at IMSAf, said the company’s success is built on consistency and reliability.

“Our strength has always been consistency – driving continuity and delivering reliability. Customers choose Isuzu because they know exactly what to expect: vehicles that are reliable, durable, and built for the realities of African operating conditions,” Uren said. 

“What has changed is how we continue to innovate on that foundation, ensuring we remain relevant in a rapidly shifting market.”

IMSAf retained its position as South Africa’s number one truck brand in the combined medium and heavy commercial vehicle segments for the 13th consecutive year, supported by growth in the heavy commercial segment. 

Strong passenger vehicle performance also contributed, with ISUZU D-MAX sales increasing 11.7% and ISUZU MU-X volumes rising 45.4%, reflecting strong market uptake of the new model.

In his presentation, Uren confirmed the upcoming launch of the new ISUZU D-MAX and next-generation truck range, signalling the company’s continued investment in products tailored to African conditions.

“As we introduce new products and technologies, that commitment remains unchanged – to deliver solutions our customers can trust, today and into the future,” he said.

Komane Pitso, the senior vice president for commercial operations, said that while tariffs and logistics costs remain a constraint, Africa alone offers enough opportunity to sustain growth provided trade across the continent becomes simpler and more affordable.

“Logistics is what makes us sometimes competitive,” he said. “We can manage production costs, but we cannot control the cost of moving a product across borders. To grow Africa, we need solutions that make intra-continental trade cheaper and faster.”

Pitso added that by positioning itself as a regional hub and prioritising reliability, total cost of ownership and sector expertise, Isuzu is navigating a complex environment of tariffs, fragmented trade and logistical bottlenecks while continuing to expand its footprint and influence across Africa.