Here are Morocco and South Africa. Other than in oil and gas, Nigeria has a lot to learn from this. We’re yet to regain our manufacturing culture.
Tags. Made in Nigeria car. Manufacturing.
Another Chinese company is set to establish a manufacturing hub in Africa’s most industrialized country, this time for $298 million
Source: Business Insider Africa
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Morocco, which this year overtook South Africa as the continent’s largest car producer and is now tagged Africa’s most industrialized country, has, in the last few years, progressively attracted substantial manufacturing investment from China in recent years.
Very recently, another Chinese company, Guizhou Tire, decided to set up a manufacturing branch in the North African country.
The tire manufacturer finalized all domestic approval and registration procedures for its planned passenger car tire manufacturing facility in Morocco, enabling the company to proceed with the project.
The Guizhou Provincial Department of Commerce, as seen in Morocco World News, issued an overseas investment certificate to Guizhou Qianjin Tire Investment, the company’s fully owned investment division, on August 11.
Additionally, Guizhou Tire filed the foreign investment project with the Guizhou Development and Reform Commission and finished the necessary assessment by the Guizhou State-owned Assets Supervision and Administration Commission.
The next phase of this initiative will be establishing Guizhou Tire’s Moroccan subsidiary and obtaining clearance for the project location.
The facility will be established in Tangier Tech City and is scheduled to produce six million passenger vehicle radial tires per year.
Guizhou Tire announced the project in January, putting the planned investment at approximately $298.7 million.
The Moroccan site will be the company’s second production factory outside of China.
Morocco has positioned itself as a desirable manufacturing location because of its proximity to European markets, trade agreements, developed industrial infrastructure, and expanding automotive supply chain.
Global manufacturers such as Renault and Stellantis already have substantial production facilities in the country, while the Tanger Med port and neighboring industrial zones offer access to worldwide markets.
China’s manufacturing push in Morocco in recent months
In the last few months, Morocco has drawn in manufacturing investments from numerous markets, including its long-time collaborator, China.
Last month, in July, China’s Gotion High-Tech was propelled to build Africa’s first electric vehicle battery gigafactory plant, after receiving a €100 million ($114 million) loan from the Africa Development Bank to support the construction.
The project will involve an initial investment of about $1.3 billion to build an integrated lithium iron phosphate (LFP) battery plant in Morocco’s Rabat-Salé-Kénitra Free Trade Zone.
According to the Washington-based think group, the partnership has become more strategically significant as governments and businesses are forced to reconsider trade routes, energy security, and industrial networks due to the protracted crisis in the Middle East.
Chinese investment in renewable energy, battery production, and electric car supply chains has grown since Morocco joined China’s Belt and Road Initiative in 2017.
The Noor solar complex in Ouarzazate is one of the key projects in which Chinese businesses have obtained shares, while others are setting up manufacturing facilities that specialize in batteries and EV components.
Additionally, industrial zones such as Tanger Tech City, located near the Tanger Med port complex, have become focal points for investment. The facilities provide manufacturers with logistics infrastructure and export connectivity at a time when global supply chains are becoming increasingly fragmented.
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