Africa’s EV production capacity nears 500,000 units

From the newsletter

Africa’s annual electric vehicle production capacity stands at nearly half a million units. Electric motorcycle assembly plants account for the largest share, with approximately 290,000 units, while the remainder is split between cars and buses. This figure includes both completed projects and those in the pipeline. Additionally, Morocco is constructing Africa’s first EV battery factories.

• The continent’s production capacity continues to grow annually, driven by increased demand for EVs, particularly motorcycles which are proving to be more economical than their petrol-powered equivalents. 

• Production capacity varies by country. Kenya leads with an annual potential of 130,000 units, followed by Nigeria at 112,000 and Egypt at 103,000. However, much of this activity is limited to assembly rather than full-scale manufacturing.

More details

• Africa’s EV industry is undergoing evolution, with significant milestones shaping the continent’s role in the global value chain. Notably, Spiro has emerged as the dominant force in electric motorcycle production with a capacity of 200,000 units annually. Its success is largely attributed to strong access to capital and strategic capabilities of India’s manufacturing prowess, where their motorcycles are produced before final assembly in Africa.

• Meanwhile, Chinese automotive giants Geely, SAIC, and Chery are leading in electric car production capacities, with major plants under construction exclusively in North Africa. Together, these projects account for 75% of Africa’s total electric car production capacity, a clear indicator that their primary focus is on exports, particularly to Europe and other external markets. 

• This export-oriented approach mirrors trends seen in the internal combustion engine (ICE) era, where Africa served as both a market and production base for global manufacturers.

• Africa’s total electric vehicle production capacity now stands at 500,000 units annually, a modest figure by global standards but highly significant within the African context. Kenya, Nigeria, and Egypt collectively contribute nearly 70% of this capacity, highlighting regional production hotspots. 

• The continent is experiencing a surge in investment, particularly in battery manufacturing and electric motorcycle assembly, driven by growing demand for affordable, clean transport solutions across urban centres.

• However, as with traditional vehicle manufacturing, Africa’s emerging EV and battery industries are not solely focused on meeting local demand. A considerable portion of this developing supply chain is already geared towards serving Europe. 

• Moroccan battery plants are well-positioned to supply European automakers, while East Africa’s growing appetite for electric motorcycles is driving demand for local assembly plants and supporting services. This dual market focus—serving both domestic needs and external export markets—will be central to Africa’s industrial strategy moving forward.

Our take

• Africa’s EV sector demonstrates remarkable strengths, including abundant mineral resources, a youthful and growing workforce, expanding production capacity, and increasing demand for clean urban mobility. 

• Yet, these advantages are countered by critical weaknesses which include limited technical expertise, inadequate local research and development, fragmented infrastructure, and heavy reliance on foreign technology and capital. 

• Long-term success will depend on Africa’s ability to localise more of the value chain, strengthen domestic supply networks, invest in skills and research and development, and implement policies that mitigate investment risks.