Egyptian EV startup eyes $100m Morocco expansion

From the newsletter 

Blu EV, one of Egypt’s leading EV startups, is set to enter Morocco by the end of 2025 with a planned investment of $100 million. The company’s main business is converting petrol-powered motorcycles into electric ones. It also sells new electric motorcycles and manages a smart network of battery swapping stations to support the use of these electric bikes. 

• Blu EV was launched in 2023 and has rapidly expanded in Egypt in just two years, proving its business model. Morocco’s vibrant automotive market offers the startup an ideal place to test its products outside Egypt.  

• Morocco boasts over 3 million motorcycles, with an annual growth rate of 8%, making it one of the largest motorcycle consuming countries in North Africa. This reveals a huge market opportunity for Blue EV’s electric motorcycles and battery swapping stations in the country.   

More details

• Blu EV co-founder and CEO Reda Baalbaki said that the expansion into Morocco is part of a larger plan to grow gradually across North Africa and the Middle East. The company also continues to expand within Egypt, aiming to provide low-cost two-wheelers in its markets.

• The company is chaired by prominent Egyptian businessman Naguib Sawiris. Mr Sawiris invested $120 million in the company, which has already set up over 50 battery-swapping stations, with a focus this year on expanding further into Greater Cairo. Blu EV plans to cover the rest of Egypt over the next five years. 

• While Blue EV has not revealed what the capital outlay will be used for, the $100 million war chest will likely be deployed towards hiring workers, building motorcycle assembly and conversion plants, establishing distribution networks, purchasing inventory and operations. 

• Blu EV’s planned expansion comes at a time when Morocco is actively offering tax breaks and purchase subsidies for new energy vehicles, aiming to add 500,000 EVs by the end of 2025. This policy further seeks to stimulate the growth of the electric two- and three-wheeler market. Morocco is also investing heavily in the production of cheap renewable energy to 52% by 2030 to accommodate the expected increase in demand from EVs. 

• However, the local use of EVs in Morocco remains low due to the high cost of electric cars and the limited number of charging stations. Most EV initiatives have focused on electric cars, with little attention to motorcycles, despite their widespread use in Morocco’s major cities like Casablanca, Marrakech, and Fez. 

• There are millions of motorcycles in Africa, with the market projected to reach $5.07 billion by 2027. More than 90% of motorcycles on the continent are petrol-powered, but electric motorcycles are gaining traction, especially in markets like Kenya, Ghana, Nigeria, Egypt, Ethiopia and Rwanda. Electrification rates for two-wheelers in Africa jumped from 1.5 % in 2022 to 4.7 % in 2023.  

• A growing number of EV startups in Africa are expanding into multiple countries to grow sales, especially in countries where the market is just developing. electric motorcycle company Spiro, which has raised $120 million from investors to date, has expanded to eight countries, while Zeno, which recently launched in Kenya, seeks to expand across the continent. Other EV startups with operations in multiple countries include Ampersand, BasiGo, and Kofa. 

Our take

• Blu EV should collaborate with local Moroccan motorcycle associations, city governments, and last-mile delivery firms to accelerate adoption. Leveraging Morocco’s EV incentives and local assembly potential can also help reduce costs and fast-track market penetration. 

• Similar to other electric motorcycle companies like Ampersand and Spiro, Blu EV should partner with fintech or mobile money providers in Morocco to offer pay-as-you-go or lease-to-own plans, targeting couriers, gig workers, and daily commuters who rely heavily on motorcycles.

• As part of its expansion strategy in Africa and the Middle East, Blu EV should use Morocco as a springboard to enter nearby markets like Tunisia and Algeria. Increased competition in the electric motorcycle segment will help Africa achieve its transport electrification targets faster.