Expanding in the electronics industry in Africa? 5 countries to consider

Looking to expand in the electronics sector in Africa…but unsure where to begin? Our in-country experts have identified 5 compelling entry points into the electronics industry on the African continent:

1.     Egypt

Egypt is becoming a leading electronics manufacturing destination in North Africa, supported by strong state involvement and an ambitious industrial vision. The government has a clear plan for the future of the electronics industry, established under the Egypt Makes Electronics (EME) initiative. It aims to transform Egypt into a regional hub for electronics design and production.

The programme offers an attractive mix of:

• Tax incentives
• Investment grants
• Support for research and development

Companies operating under the scheme can benefit from tax reductions of up to 50% and customs exemptions for production equipment.

To make matters more interesting, the Egyptian government has also introduced a 30 billion Egyptian pound fund to support industrial localisation and encourage import substitution.

In recent years, several global manufacturers have entered the Egyptian market.

Notably, mobile phone production facilities have been established by major regional and international brands. As such, exports now form part of Egypt’s broader trade diversification goals.

Why expand to Egypt in the electronics industry?

1. A strategic location linking Africa, Europe and the Middle East
2. Growing technical capacity
3. State-backed initiatives and vision for the electronics industry
4. Houses facilities for mobile phone production brands, showing an established network and logistics chain for newcomers to enjoy

2.     Morocco

Morocco’s industrial development model has made it one of Africa’s most advanced manufacturing economies.

The country’s network of industrial zones, such as the Tanger Med and Kenitra Free Zones, offer great logistics and proximity to European markets, only 14 kilometres away via the Strait of Gibraltar. These areas have already attracted global automotive and electronics firms serving both Europe and Africa, making nearshore opportunities abundant.

Morocco’s government has prioritised manufacturing for exports and technological innovation under its national Industrial Acceleration Plan. These incentives include:

• Tax holidays
• Customs exemptions
• Access to world-class infrastructure

Currently, Morocco is positioning itself as a reference point in Africa to produce electric vehicle components, batteries, and electronic systems.

Interestingly for with looking to meet the large demand for energy-efficient electronics, Morocco lays emphasis on renewable energy and green manufacturing.

Its trade agreements with the European Union and the United States further enhance its appeal as a gateway for electronics producers seeking access to global markets, often at a fraction of the price.

Why expand to Morocco in the electronics industry?

1. Nearshore opportunities for Europe
2. Industry is backed by national government plan
3. Trade agreements with the EU & the USA

3.     South Africa

South Africa remains the most industrially developed economy in Sub-Saharan Africa. It is home to long-established manufacturing, engineering, and high-technology industries. The manufacturing sector alone contributes roughly 13% to GDP and employs over 1.6 million people.

South Africa boasts an advanced ecosystem of 3,000+ companies in electronics, ICT, and telecommunications. Furthermore, the country has a strong research capacity, supported by a network of universities and technical institutions.

Recent industrial policy shifts have emphasised:

• Renewable energy technology
• Automotive components
• Electric vehicle production

All these moving parts rely heavily on electronics manufacturing.

Why expand to South Africa in the electronics industry?

• Developed infrastructure, skilled workforce, and developed financial sector
• Ideal for companies requiring higher technical standards or integrated supply chains
• Existing and new policies back the industry

4.     Kenya

Kenya is emerging as a promising hub for electronics assembly and innovation in East Africa.

Its expanding middle class and rising consumer demand have created a vibrant market for:

• Telecommunications
• Consumer electronics
• Digital devices

The government has capitalised on this trend by promoting local manufacturing and reducing import dependency.

Kenya’s technology ecosystem, which is centred around Nairobi’s Silicon Savannah, is home to:

• Startups
• Research institutions
• Innovation labs driving advancements in hardware and software integration

Special economic zones and industrial parks, such as those in Naivasha and Athi River, provide incentives for manufacturing and export activity.

The country also continues to invest in renewable energy, logistics, and digital infrastructure.

Why expand to Kenya in the electronics industry?

• Growing client base
• Existing infrastructure centred around technology
• Economic incentives

5.     Algeria

Algeria has, for long, sustained an industrial base centred on heavy manufacturing and electronics assembly. The government is now taking steps to modernise this sector and attract greater private investment. The state-owned Entreprise Nationale des Industries Electroniques (ENIE) recently announced plans to produce 2 million tablets for educational institutions. This shows both capacity and ambition in local electronics manufacturing.

Private companies are also entering the space. Condor Electronics, one of the country’s largest technology firms, has expanded its smartphone and appliance production, eying regional exports.

Algeria’s proximity to European markets and improving business climate make it increasingly attractive, though bureaucratic procedures and infrastructure gaps still pose challenges.

Why expand to Algeria in the electronics industry?

• Long history of a serious industrial base
• Government-backed initiatives supporting the industry
• Nearshore opportunities for European markets

Africa’s electronics sector is evolving from simple assembly operations to more sophisticated, integrated manufacturing. Government incentives, demographic advantages, and regional demand are reshaping the continent’s industrial map.

Expand to 46+ African countries seamlessly

For companies seeking to diversify their supply chains or serve Africa’s expanding consumer base, these 5 countries represent great opportunities.

But how can one access these opportunities in the first place? An Employer of Record (EOR) like Africa HR Solutions allows you to expand into these countries legally, without an entity. This solution saves you time and money, while also liberating you from functions like onboarding employees, payroll, compliance, and more.

To find out more about how we can help you expand to these 5 countries, send us a message.