European firms seek protection from Moroccan vehicles

• There is concern in Europe that domestic firms will shed millions of jobs due to an influx of cars and components from Morocco. The country has a free trade agreement with the EU. This has allowed it to become the largest exporter of vehicles to Europe. 

• The protections that European firms are demanding are in the form of higher import duty on vehicles from the North African country. They are furthermore asking for EU subsidies and other incentives to improve the continent’s competitiveness.

• Our take: EU tariffs on Morocco’s vehicles could hasten similar action from the US, which also has a free trade agreement with the North African country and which has also introduced tariffs on Chinese goods... Read more (2 min)

South Africa doubles production of plug-in hybrid EVs

• PHEVs offer a middle ground between traditional internal combustion engine (ICE) vehicles and full battery electric vehicles (BEVs). This is particularly appealing in South Africa, where widespread charging infrastructure is still limited.

• In a market where more than half a million motor vehicles are sold annually, the PHEV sales numbers are tiny. This could however change as prices are expected to decline. Growth could also be propelled by the introduction of longer-range options, which are already being sold in markets such as China.

• Our take: PHEVs with electric ranges of between 200 and 300 km are likely to appeal to non-early adopters, especially in markets where charging infrastructure is not fully developed as is the case in Africa... Read more (2 min)

Mobility funding rises fastest in North Africa

• Debt and Series B funding dominated February 2025, accounting for 76.53% of the total funding, with $30 million being raised in West Africa. Pre-Series B funding followed, contributing 17.35% of the total, with Egypt's securing $6.8 million. Venture rounds represented 0.52%, with Tunisia raising $0.2 million.

• The high percentage of debt financing suggests that investors are shifting towards lower risk options, shying away from equity investments and favouring businesses with proven revenue models.

• Our take: Investors are prioritising scalability over experimentation. Early-stage ventures may struggle to secure funding swiftly, requiring alternative financing strategies such as grants or accelerator programmes… Read more (2 min)

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