European and Chinese automotive companies are finding countries like Morocco and Egypt as
the places to go for growth.

North Africa is emerging as a new automobile manufacturing hub, as carmakers from China
and Europe eye its existing infrastructure and proximity to key markets.
“New investments in the African automotive value-chain driven by local presence of tier suppliers,
increasing technical competence and attractive cost structures,” noted Euro Asia Consulting Group.
Automakers are not only drawn to the continent’s strong growth prospects and a continent-wide
GDP of $2.5 trillion, but also its population of 1.3 billion of mostly young people eager to buy
their first vehicle.

“The African automotive supply ecosystem’s maturity is significantly high as Automotive OEMs
(original equipment manufacturers) and tier companies have not only invested in the countries
to meet local demand, but more so to leverage the attractive resources and cost structures for
exports,” EAC noted.

Morocco is especially emerging as a major automotive manufacturing hub with a slate of new
expansion projects planned over the next few years.

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