The electrification transformation in the Middle East and Africa brings opportunities. China Energy Storage Network: On the streets of the Middle East and Africa, the Global Times reporter found that Chinese electric vehicles are becoming more and more common. In cities such as Doha, Riyadh, and Cape Town, BYD, Weilai, and Xiaopeng frequently appear on the streets. Experts believe that although the penetration rate of electric vehicles in the Middle East and Africa is still in its infancy, with the support of government policies in relevant countries in the Middle East and Africa and the gradual improvement of infrastructure, there is unlimited growth potential in the future.

Green landscape of desert cities

On the 4th, on the Corniche in Casablanca, Morocco, diagonally opposite the famous Four Seasons Hotel, a unique two-story building was very eye-catching. The Global Times reporter found that the building was BYD's local store. Various new electric vehicles of BYD are parked in the store, which is crowded with customers who come to watch, consult, and ask prices. They open the door and sit in the car, shift gears, brake, and experience Chinese cars in person. Among them, there are many families of three who buy family cars here.

According to the Nikkei report on the 3rd, relevant departments in the Middle East, Africa and other countries have also begun to propose decarbonization policies. South Africa has proposed a goal of reducing greenhouse gases by 2030, and the Ministry of Trade, Industry and Competition has also released the "Electric Vehicle White Paper", aiming to transition South Africa from mainly producing internal combustion engine vehicles to incorporating electric vehicles into the "dual platform" of production and consumption combinations. Riyadh, the capital of Saudi Arabia, also mentioned in the "2030 Vision" that the goal is to achieve a 30% share of new energy vehicles.

The electric vehicle revolution is sweeping the Middle East, Africa and other places. According to the Ethiopian Herald, in early February this year, Ethiopian Minister of Transport and Logistics Alem announced that the country would only allow the sale of electric vehicles in the future. The governments of countries such as Ghana and Algeria have also issued a series of preferential policies such as reducing or exempting tariffs on imported electric vehicles to encourage consumers to buy electric vehicles.

In addition, local areas with weak automobile industry foundations also hope to introduce imported technology to develop local electric vehicle industry chains. According to Morocco World News, Morocco, located in North Africa, is committed to developing its electric vehicle industry by attracting investment, establishing partnerships and providing incentives. Morocco's Minister of Industry and Trade, Mezoul, said that the goal is to develop Morocco into one of the few countries in the world with a complete automotive battery production industrial system and become the world's most competitive electric vehicle manufacturing platform.

The Gulf countries have also introduced a series of policies to support the development of the electric vehicle industry. The UAE launched the "Global Electric Vehicle Market" project in 2023, aiming to increase the proportion of electric vehicles in the UAE to 50% by 2050.

A market with huge potential

The huge market demand and preferential government policies attract outstanding overseas electric vehicle companies to go for gold. Zhang Xiang, Secretary-General of the International Association of Intelligent Transportation Technology, said in an interview with the Global Times on July 4 that companies will naturally flow to an environment with relatively favorable policies and a relatively fair market. Chinese car companies are also flocking to the Middle East and Africa in this wave.

The electric minibuses produced in China are exported to Ethiopia in a completely disassembled manner, and the local Belene Kindi Metal Engineering Company is responsible for assembling and launching them on the market, which is welcomed by local consumers. Dakar, the capital of Senegal, also cooperated with Chinese companies to open the first rapid electric bus project in West Africa. "If you take a bus to Nairobi Airport, it's probably an electric bus - and it's likely made by a Chinese company," the Hong Kong-based South China Morning Post reported.

In March this year, Morocco reached a cooperation agreement with Chinese company BYD New Materials Group, making Morocco take an important step in the manufacturing of key components for electric vehicle batteries.

According to Egyptian media reports, Egypt's GV Investment Company and China's FAW Group have reached a cooperation agreement to jointly produce economical electric vehicles in the Middle East. Sharif, chairman of GV Investment Company, said that this cooperation will enable the company to expand its production scope in the next 3-5 years, localize 65% of its parts, and export its products to the Middle East, Africa and Latin American markets.

In South Africa, BYD released the SUV model "Atto3" last year, which once caused local heated discussions. This is the second Chinese electric car to enter the South African market after Great Wall Ora. The Atto 3 is priced at about US$41,260, which is much lower than the high-end electric models of Mercedes-Benz, BMW and Audi that entered earlier. Walter Madera, chief analyst for automotive forecasts for Europe, the Middle East and Africa at S&P Global Mobility Services, said Chinese brands offer more choices and lower costs for electric vehicle buyers.

Data show that China's exports of new energy vehicles to Africa will increase by 291% year-on-year in 2023. Lebanon's Al Mayadeen TV reported that in 2019, only 72 Chinese electric vehicles were cleared in the Zarqa Free Zone, an important automobile import destination in Jordan, while the number increased to 12,820 and 33,386 in 2022 and 2023, respectively. More and more Jordanians are choosing low-cost Chinese electric vehicles.

In addition, Chinese brand cars have a market share of more than 10% in many Middle Eastern countries such as Saudi Arabia, Bahrain and Oman. According to S&P Global, more than 20 Chinese auto brands have entered the UAE's auto market, twice as many as in 2022. "(Chinese brands) will increase further in 2024."

Challenges of infrastructure

According to the Hong Kong South China Morning Post, Salim Fakir, executive director of the African Climate Foundation, said that although Chinese cars have entered most African markets, the penetration rate of electric vehicles is low due to the lack of reliable electricity and other supporting facilities related to electric vehicles. However, the government is taking positive measures to improve.

South Africa's authoritative ICT media "MyBroadband" reported that South Africa's public electric vehicle charging network will undergo a major upgrade, and only one large operator will add 150 new charging stations in a year. These new charging stations will play a key role in ensuring that more charging piles are available for South Africa's rapidly growing early electric vehicle users. Egypt has also introduced measures to invest about US$1.5 billion in the construction of charging stations and electric vehicle manufacturing plants to promote the development of the local electric vehicle industry.

In addition, Zhang Xiang said that Chinese electric vehicles are also planning to invite charging pile companies to go overseas together. BYD also plans to work with local governments and companies to establish a network of charging stations in major cities to solve charging problems. Egyptian automobile expert Hafez said in an interview with the Global Times that the entry of Chinese electric vehicles will have a positive impact on the local area. In addition to consumers, local companies will also benefit from the cooperation and enhance their competitiveness. This mutually beneficial relationship will help promote the prosperity of the electric vehicle market in the Middle East and Africa and promote sustainable economic and environmental development.

Hafiz also said that overall, Chinese electric vehicles have broad market prospects in the Middle East and Africa. Although there are some challenges, the prospects are optimistic as market demand grows and infrastructure improves.

[Editor: Ouyang Yong