The Egyptian conglomerate Elsewedy is set to make a significant investment in Algeria's automotive sector. The company's President and CEO, Mostafa Awad, announced that they will be launching a project to manufacture electric and hybrid vehicles in the country. This move is in line with Algeria's efforts to accelerate its energy transition and reduce its dependence on fossil fuels. An feasibility study has already been submitted to the Prime Minister's office and is currently under strategic review.
The project will involve the production of two models, a 100% electric vehicle and a hybrid model, under the brand "Elsewedy EZZ". The vehicles will be manufactured using German and Chinese engineering components, with all components to be produced locally except for the engine. Elsewedy aims to achieve a national integration rate of 50-60% through the development of a local supply chain and subcontracting network.
The investment in the electric vehicle plant is part of a larger program by Elsewedy, which includes a total investment of $1.3 billion across several projects in Algeria. In addition to the automotive project, the company has submitted requests for approval to establish a steel products factory and seven other units specializing in the production of pipes, PVC resin, fiber optic cables, irrigation systems, and electrical transformers.
The Algerian authorities have welcomed Elsewedy's investment plans and are working to allocate the necessary industrial land and finalize the regulatory procedures for the projects. Three new production units, dedicated to data cables, electrical insulators, and dry transformers, have already started operations in 2026, with a national integration rate of 80%.
Elsewedy's ambitions in Algeria go beyond the local market, with the company aiming to export 25% of its production to international destinations, including the US, Italy, Saudi Arabia, and Chile. The company expects to generate $25-30 million in annual exports and has already helped Algeria save over $1 billion in imports by producing high-voltage cables locally.
The company's investment in Algeria's energy sector is also expected to support the country's efforts to reduce its carbon footprint. Elsewedy is studying the possibility of building an aluminum plant, which would take advantage of Algeria's energy opportunities while contributing to decarbonization efforts.
The partnership between Elsewedy and Algeria's state-owned energy company, Sonelgaz, is expected to strengthen the transfer of competencies and consolidate Algeria's position as a major industrial and logistical platform. The company's investment in the country is seen as a significant step towards achieving Algeria's economic development goals.
Key points
- Elsewedy plans to invest $1.3 billion in several projects in Algeria, including an electric vehicle plant.
- The company aims to achieve a national integration rate of 50-60% through the development of a local supply chain and subcontracting network.
- Elsewedy expects to generate $25-30 million in annual exports from its Algerian operations.
