Africa is set for an automotive industry boost in 2026, and one country is leading the way. South Africa is already the top player in the continent’s car manufacturing game, but it’s about to level up by moving into the production of electric vehicles. The country’s industry minister has been working hard to increase foreign investment and his efforts are paying off.
South Africa is set to cement its position as Africa’s auto manufacturing leader
Several leading international brands, including Toyota, Ford, Volkswagen, Isuzu, Mercedes, and BMW, chose South Africa as their manufacturing location. The country’s automotive production industry is well-established and plays a key role in the economy, contributing billions to the GDP and providing thousands of jobs.
South Africa is also highly integrated into the global supply chain, sourcing components from around the world and exporting vehicles to more than 150 countries. A strong port network is one of the reasons why South Africa is attractive to vehicle manufacturers.
The industry continues to expand under government incentives and a focus on sustainability, and a new direction has opened with the planned production of electric vehicles (EVs) from 2026.
South Africa’s efforts to gather automotive investment are paying off
South African Minister of Trade, Industry, and Competition, Ebrahim Patel, recently outlined the country’s Just Energy Transition (JET) plan, explaining that electrification of the transport sector is one of the fundamental pillars supporting the development of a low-carbon and climate-resilient economy.
The JET plan projects that investments amounting to $6.84 billion (R128.1 billion in local currency) would be needed from 2023 to 2027 to enable the transport sector to contribute meaningfully to South Africa’s decarbonization efforts.
Minister of Trade, Industry, and Competition, Ebrahim Patel, confirmed to the media:
“We’re already producing hybrids but we anticipate that the first electric vehicles are likely to be produced already by 2026.”
Patel hasn’t indicated which brand or brands of EVs South Africa will be producing, but he explained that the pilot batch will be limited. A period of accelerated growth should follow from 2026 to 2030. At present, there’s only one manufacturer looking to expand into battery-electric vehicles post-2030.
The South African government has a robust plan to support the clean energy transition
In a 68-page EV plan, the government detailed future actions to support the transition. These include government incentives, a temporary reduction of import duties on batteries in vehicles produced and sold in the domestic market, and the commercialization of environmental hydrogen production as a source of clean fuel.
The plan also involves reforming network industries, including freight rail and ports, and implementing energy reforms.
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Morocco is another country in Africa moving into EVs
Morocco is another country on the African continent that’s moving into electric vehicle manufacturing. The Atlas E-Mobility Group has chosen Morocco to launch its first locally designed battery-electric vehicle, which is also planned for production from 2026.
The company was 2021 and is based in the United Kingdom. The aim is to create an affordable, practical electric vehicle suited to emerging markets where charging infrastructure is limited. There aren’t many details on the car’s design and technology available, but Atlas is working on enhancing its range and developing the charging infrastructure needed to support its rollout to the public.
Mohammed Yehya El Bakkali, co-founder and CEO of Atlas E-Mobility Group, highlighted Africa’s potential for EV production:
“We feel strongly that Africa is being ignored by companies in the EV transition. However, no one should underestimate the continent’s determination to advance nor doubt its ability to produce world-leading zero-carbon-free technological solutions. In the field of transportation, these will prove pivotal to helping limit the rise in global temperatures to less than two degrees Celsius.”
It’s clear that Africa is rising to meet the demands of the clean energy transition admirably, and with new investment rolling in, we are likely to see more and more African-built EVs on the roads in the coming years.
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