Morocco beats Egypt as North Africa’s EV hub

From the newsletter

North Africa concludes the fourth segment of our EV market assessment. The region's abundant solar energy and proximity to Europe are the key drivers of EV growth. The region has attracted strong partnerships with global automakers and battery manufacturers. According to our analysis, Morocco leads and Egypt follows. 

• Tunisia, Algeria, and Libya lag significantly, needing considerable advancements to close the gap and unlock their full potential.

• The region performed moderately on electricity affordability, with funding and talent concentrated mainly in Morocco and Egypt, while the rest of the region struggled across most other metrics.

More details

• Morocco dominates North Africa’s EV landscape, driven by strong production capacity, successful fundraising, and a deep talent pool. The country currently has a production capacity of 40,000–50,000 EVs annually, supported by partnerships with global players like Renault, Stellantis, and several Chinese battery manufacturers. New plans are in place to scale production to 600,000 units by 2030. The secret to its success is that Morocco combines low-cost labour, abundant renewable energy, and a stable business environment to cement its position as the regional leader.

• Egypt follows closely, with a capacity of 25,000 EVs annually, led by El Nasr Automotive and partnerships with Dongfeng and Geely. Government initiatives, including subsidies covering 35% of EV costs and the establishment of the Supreme Council for Vehicle Manufacturing, are driving growth. However, limited charging infrastructure and low consumer awareness remain key challenges. Local players like Shift EV are fostering homegrown talent, which will be crucial as the country expands its EV production. Over the past year, six Egyptian EV companies secured multimillion-dollar funding rounds, further strengthening the sector's foundation.

• Tunisia ranked third and is still laying the groundwork for its EV future. BYD’s entry with new models and government incentives like reduced VAT signal early progress, but without local production or substantial funding, development remains in its infancy. 

• Algeria and Libya bring up the rear, both scoring poorly. Algeria’s EV journey is limited to prototypes, though its charging station exports and hosting of the International Exhibition of Electric and Hybrid Vehicles show some ambition. Libya’s market is even smaller, reliant mainly on imported EV models.

Our take

• North Africa’s EV landscape reflects the broader dynamics of the continent—leading nations like Morocco and Egypt are leveraging partnerships, resources, and policy frameworks to drive progress. Meanwhile, Tunisia, Algeria, and Libya are lagging due to significant challenges in infrastructure, funding, and consumer adoption.

• Morocco’s ambitious production targets and Egypt’s government-led initiatives highlight what is possible when the public and private sectors collaborate effectively. For others in the region to catch up, governments must prioritise investment in infrastructure and policies that encourage innovation and attract talent.

• Please see the numerical results from our ranking in the table below: