South Korea gives Egypt $10m grant for EV service facilities

From the newsletter

The Korea International Cooperation Agency (KOICA) has given Egypt a grant of $10 million to develop EV maintenance technology at four vocational training institutions. Egypt said the five-year project will provide simulation systems for practical training and advanced equipment for repairing electric car batteries as they are the most important component in vehicles. 

• The KOICA grant directly addresses a critical gap in Egypt's emerging EV market by training a skilled workforce. This investment will increase the number of qualified technicians to maintain and repair EVs, particularly their complex battery systems.  

• This shows KOICA’s increasing involvement in Africa’s EV sector. KOICA is also exploring the introduction of EVs into the green transition strategy of Sierra Leone, and has held discussions regarding potential investments in EV projects in Nigeria. 

More details

• The new project complements the three-phase development of automotive training centers in Egypt initiated by the Korean government. The grant aims to develop the Shubra Automotive Maintenance Vocational Training Center, the Imbaba Automotive Vocational Training Center, the Moharram Bek Automotive Vocational Training Center in Alexandria, and the Kafr El-Zayat Automotive Vocational Training Center. 

• More than 7,200 electric cars were sold in Egypt between July 2021 and June 2024, making it one of Africa’s leading EV markets. In the whole of 2024, about 2,900 electric cars were sold in the North African country. Despite this rapid growth in recent years, EVs are still a very small fraction of all vehicle sales. 

• While the EV market in Africa is still nascent, growing sales in countries like South Africa, Kenya, and Egypt is exposing a critical skills gap in the automotive industry. The repair and maintenance of EVs, particularly their complex battery systems, require specialized knowledge and equipment that are not covered in traditional automotive training programs.

• The demand is being addressed through various initiatives, including government policies and private sector investments. For example, vocational training programs are being created to equip technicians with the necessary skills for EV maintenance. These programs are vital for building a skilled workforce that can support the growing e-mobility ecosystem and address consumer concerns about long-term vehicle reliability. 

• The demand for skilled EV technicians is evident. In Mobility Rising’s weekly listing of new jobs in the electric mobility industry, we have noticed growing advertisements for technician roles by companies like Zeno, Greenwheels, Ampersand, Gogo Electric and Spiro. This highlights that individuals who get skills in this area will have more job opportunities as the EV industry grows. 

• Like South Korea’s KOICA project in Egypt highlights, increased funding for African governments and EV startups can help plug the skills gap in the sector. Companies like Spiro, Roam and eBee have already established training programmes to skill individuals that can be absorbed by the companies. Such programmes can lower the cost of acquiring talent. 

Our take

• The successful public-private partnership between KOICA and Egypt should serve as a blueprint for similar collaborations across other African nations. International development agencies, private partners and local governments must co-invest to meet the continent's growing demand for skilled labor. 

• Training programs ought to incorporate advanced equipment and simulation systems, especially for the complex and high-risk task of battery repair. This focus on practical, hands-on experience with critical EV components is essential for producing truly qualified and safety-conscious technicians. 

• Beyond the classroom, training initiatives should be linked to broader strategies for job creation and business development. This could include providing support for trained technicians to start their own repair shops and establishing partnerships with fleet operators for maintenance contracts.