Ahmed Elsewedy's Elsewedy Electric to Launch Electric Vehicle Production in Algeria

Ahmed Elsewedy, the Egyptian billionaire and head of Elsewedy Electric, has announced plans to establish a manufacturing facility for electric and hybrid vehicles in Algeria. This initiative marks a significant expansion of one of the largest Egyptian industrial investments in the North African nation.

The company has submitted a comprehensive feasibility study for the proposed plant to the office of Algeria's Prime Minister, which is currently under review. Mostafa Awad El Halawani, the CEO of Elsewedy Electric's Algerian division, shared insights about the venture during the NAPEC 2026 energy conference held in Oran.

The new facility is set to produce vehicles under the Elsewedy EZZ brand, which the company already manufactures in Egypt. The lineup will include a fully electric car and a hybrid model that operates approximately 80% on electricity and 20% on petrol. While the engineering components will be sourced from Germany and China, the company aims to produce 50% to 60% of the vehicle parts locally in Algeria. The only component not planned for local production is the motor.

Details regarding the exact location of the factory, the anticipated production capacity, and the timeline for commencement have not yet been disclosed. The electric vehicle project is part of a broader $1.3 billion investment initiative announced by Elsewedy Electric in May, which aims to diversify its operations in Algeria.

This latest venture follows a memorandum of understanding signed in September 2025 with Algeria's investment promotion agency, where Elsewedy committed to a $2.5 billion investment plan. This figure represents a fivefold increase compared to the company’s previous investments in the country, which included plans for ten factories across various sectors.

Elsewedy Electric has been operational in Algeria for over 15 years and currently holds a substantial share of the electrical equipment market, estimated at nearly 45%. The company has recently launched three new production units focused on data cables, electrical insulation materials, and dry-type transformers, with a strong emphasis on sourcing inputs locally, reportedly using around 80% Algerian materials.

In addition to the electric vehicle project, Elsewedy Electric has sought approval for several other manufacturing initiatives, including a steel products plant and seven specialized units for producing pipes, PVC resin, fiber optic cables, center-pivot irrigation systems, and electrical transformers. Algerian authorities have shown a positive response, facilitating the allocation of industrial land for these projects.

Elsewedy Electric is recognized as Algeria's sole domestic producer of high-voltage cables rated up to 220 kilovolts, contributing to significant savings in import costs for the country, estimated at over $1 billion. The company has strengthened its collaboration with Sonelgaz, Algeria's state power company, and plans to export approximately 25% of its production to various international markets, including the United States, Italy, Saudi Arabia, and Chile.

Founded in 1938 by the Elsewedy family, Elsewedy Electric has evolved into one of Africa's largest industrial enterprises. In 2024, the company reported revenues of $5.13 billion, operating 34 production sites across 19 countries and employing over 19,000 individuals. Ahmed Elsewedy, who holds around 25% of the company's shares, has seen his stake valued at approximately $1.11 billion as of late September.

The automotive sector in Algeria has been undergoing transformation, with the government actively promoting the development of a domestic car industry following years of inconsistent policies regarding vehicle imports and assembly. Should the feasibility study receive approval, Elsewedy Electric's entry into the electric vehicle market could provide a vital boost to Algeria's ambitions in this sector.