New Egypt factory boosts e-bus capacity

From the newsletter

Africa’s electric bus production capacity has surged by 44% from 2,740 to 3,940 units annually, according to the Mobility Rising projects database. The increase follows the recent launch of a new factory by MCV, the Middle East and Africa’s largest bus manufacturer. The facility adds new capacity for 1,200 electric buses per year, with potential expansion to 2,500 units.

• With over 60% of Africa’s population relying on public transport and more than one million buses in operation, the potential for electric buses is immense. Their adoption could significantly transform urban mobility and reduce emissions.

• Successful deployments in Egypt, Kenya, Morocco, Ethiopia, Rwanda, Senegal and South Africa prove their viability. The entry of MCV, with its expertise and financial strength, is set to make e-buses more accessible across the continent.

More details

• Uganda’s Kiira Motors currently holds the largest electric bus production capacity in Africa, with the ability to manufacture up to 2,500 units annually. However, funding shortfalls have slowed its progress, preventing the company from reaching full capacity. Despite this potential, Kiira has produced fewer than 50 buses, showing the gap between capacity and real output.

• MCV follows as the second-largest producer, with an annual capacity of 1,200 units. Its new factory in Egypt is expected to revolutionise mass transport in the country by providing cleaner and more efficient alternatives. With the right conditions, MCV has the ability to scale production up to 2,500 buses and expand its market into Europe and the MENA region.

• Nasr Automotive Company is also stepping into electric bus production, further consolidating Egypt’s position as a regional hub for e-mobility. Together with MCV, it strengthens the country’s ambition to compete in both domestic and export markets. This collaboration could create synergies in manufacturing, technology, and supply chain development.

• Funding remains the single largest challenge for e-bus manufacturers in Africa, limiting their ability to scale quickly. Access to affordable financing is critical not only for production but also for supporting operators and governments in acquiring the buses. Without stronger funding mechanisms, many manufacturers risk operating far below their capacity.

• BasiGo takes the third spot with an annual production capacity of 240 buses after expanding from just 10 to 20 per month. While this capacity is modest compared to Kiira and MCV, BasiGo’s innovative pay-as-you-drive model has lowered the barrier to entry for operators. This approach has made e-buses more affordable to acquire, especially for smaller fleet operators.

• Demand for e-buses in Africa is growing steadily, with urban populations and governments seeking sustainable mass transport solutions. However, the current supply of buses is slow compared to demand, as most manufacturers are constrained by funding and scale. Expanding local manufacturing will not only meet the demand but also cut costs, create jobs, and strengthen Africa’s position in the global EV value chain.

Our Take

• Strong market demand contrasts with slow production, creating a clear mismatch between needs and supply. This imbalance threatens to delay Africa’s shift toward cleaner and more sustainable mass transport.

• Supply chain constraints, especially in batteries and specialised components, remain a major bottleneck. These challenges not only inflate costs but also extend delivery timelines, limiting how quickly manufacturers can scale.

• Limited funding continues to hinder the scale-up of production, leaving factories unable to operate at full capacity. Without consistent capital injection, expansion plans remain stalled.