With the United States and the European Union imposing hefty tariffs on Chinese electric vehicles (EVs), its carmakers are searching for alternative markets, notably in Africa, experts say.
On the African continent, Egypt is among the countries drawing investments from China, with state-owned carmaker BAIC Group and Zeekr, Geely Auto’s premium EV maker, both having recently announced plans to enter the country – a key location for automotive firms looking to tap into the wider regional market. Egypt’s strategic location and competitive labour costs “means it’s not a bad place to open renewables-related assembly plants,” says Lauren Johnston, a China-Africa specialist at the University of Sydney’s China Studies Centre. “Also, it is within the African free-trade agreement area and also close to high-income markets in the Middle East and Europe,” she added.
Chinese EV makers are opening assembly plants and flagship stores across Africa and the Middle East as they look to expand their footprint in the market there and circumvent tariffs and other import restrictions imposed by the US and Europe. Egypt has attracted sizable investments from China, especially to the Suez Canal Economic Zone, as its firms seek a shorter route to European, Middle Eastern and African countries. But the big winner is still Morocco — strategically located at the crossroads of Africa and Europe – owing to its free-trade agreements (FTAs) with both the EU and the US, which has attracted Chinese investment in electric vehicles and new energy.