North Africa leads the EV pack

From the newsletter

Egypt stands out in Africa for its holistic approach to electric mobility growth, combining local manufacturing, pilot projects for e-taxis and e-buses, and a rapidly expanding charging network, driving its EV sales. This was confirmed by new investment numbers. Egyptian companies raised 92% of the November funding total.

• Of the $13.2 million raised in November, all but $1 million went to Egypt. This is a significant rise from the $2.1 million raised in North Africa in November 2023.

• The month was also marked by the Morocco visit of the Chinese President as well as several international trade deals, including partnerships with global players like Gotion and Foton Motor.

More details

• The data from Africa The Big Deal positioned Northern Africa as the leading region for EV capital in November, with a total of $12.2 million from two deals. Senegal’s deal brings West Africa’s total to $1 million, signalling a modest but important effort to stay in the game.

• While Northern Africa surged, other regions told a different story. West Africa, which had been a dominant force in 2023 with 192 fundraisers totalling $192 million, has slowed down in 2024. The November total of $1 million is its lowest monthly figure this year.

• Meanwhile, East Africa, a consistent performer with 20 fundraisings amounting to $89.65 million in 2024 so far, was absent last month. This marks the only second time this year that East Africa has missed out on EV funding in 2024.

• Southern and Central Africa continue to lag, each recording minimal activity in 2024. Their combined total of $4.7 million in 2024 remains a fraction compared to what other regions have raised.

• So far in 2024, Northern Africa has raised $20.85 million, up from $15.78 million in 2023, reflecting the region's growing ability to attract both international and regional investors.

• November’s numbers reinforce a volatile trend in Africa’s EV sector for 2024. The $13.2 million raised this month is a stark decline from October’s $43.2 million and far below February’s peak of $135.75 million.

Our take

• The absence of East Africa and the slowdown in West Africa could raise questions about how evenly the continent’s EV sector will develop. 

• Historically, automotive industries have flourished in clusters. One region in Africa will eventually take the lead—could it be the North? Only time will tell.

• For now, the sector’s growth remains uneven. With just one month left in the year, all eyes are on December to see if Africa’s EV sector can end 2024 on a high note.