German automotive supplier LEONI Cable Solutions has broken ground on its first African production facility, committing €60 million (approximately $68 million) to a plant in Morocco’s Kenitra Free Trade Zone — also known as the Atlantic Free Zone — that will manufacture advanced cables for next-generation autonomous driving technologies.
The facility will produce single-core and multi-core automotive cables, including data transmission cables used in advanced driver assistance systems and autonomous vehicles. The investment positions LEONI closer to a fast-growing automotive ecosystem that supplies European and international markets, while supporting Morocco’s push into higher-value manufacturing as global carmakers demand more sophisticated components for electric, connected, and automated vehicles.
The groundbreaking ceremony brought together representatives from Morocco’s government, regional authorities, the Kenitra Free Trade Zone, business leaders, and service providers involved in the project.
Morocco consolidates its industrial lead
The investment arrives as Morocco has displaced South Africa as Africa’s most industrialised economy, according to the African Development Bank’s (AfDB) 2025 Africa Industrialisation Index. The AfDB attributed the shift to Morocco’s industrial upgrading, export diversification, and state-backed manufacturing policies, with automotive and aerospace sectors anchoring its rise.
Morocco’s Kenitra Free Trade Zone has become a focal point for global automotive suppliers seeking proximity to European markets and access to a maturing industrial base. LEONI’s plant adds to a growing cluster of international manufacturers that have established operations in the kingdom.
Chinese ownership adds a layer of strategic context
The project also reflects broader shifts in the ownership of European automotive supply chains. Luxshare-ICT, the Chinese electronics and cable manufacturer, has increased its ownership stake in Leoni AG — LEONI Cable Solutions’ parent company — to 74.9%, making the Kenitra investment a notable example of Chinese-backed capital flowing into African automotive manufacturing through a European industrial brand.
For Morocco, the LEONI plant reinforces the country’s ambition to move beyond assembly and into the production of high-technology automotive components — a strategic priority as the global industry transitions toward electrification and autonomy.
