Morocco unseats South Africa as Africa’s largest automotive industry base- Fitch Solutions

In 2024, Morocco is set to unseat South Africa as the largest car producer base in Africa, thanks to its investment climate which attracted investments from major European and Chinese producers.

“Morocco will remain the favored investment destination for autos due to its proximity to the EU, existing trade agreements, and efficient logistics infrastructure,” Fitch Solutions said in a report.

“South Africa will struggle to attract increased investment over the medium term due to the country’s unfavorable operating environment, which involves emissions, labor, trade, and transport risks,” it said.

Morocco is home to production plants by French brands Renault and Peugeot, which together are poised to reach a production capacity of 1 million cars by 2026.

The country has also increased its local sourcing rate to 65% for Renault cars.

Last month, Gotion High Tech announced its plan to build a gigafactory, Africa’s first. Other investments by Chinese manufacturers in the EV battery supply chain are underdevelopment, building on the country’s FTA’s and availability of raw-material.