EV and African Market – Part 1

Green Tech Startups Driving Electric Mobility in Africa

Green tech startups are leading Africa’s charge towards electric mobility, a crucial intervention in the fight against climate change as global adoption of electric vehicles (EVs) accelerates. From Cape to Cairo, major cities across the continent are actively working toward this vision. To catalyze this transition and facilitate the adoption of electric mobility, several African countries are establishing comprehensive policies. The European Union’s decision in July 2021 to phase out diesel and petrol car sales positively influences African nations like South Africa, which exports nearly 64% of its manufactured vehicles to global markets.

Jane Akumu, a programme officer with the United Nations Environment Programme (UNEP), emphasizes that the continent is awakening to the opportunities in the Africa electric vehicle market, particularly in electric two- and three-wheelers. She notes the potential for business in charging and battery swapping, local manufacturing, and renewable energy. “Many African governments and private sector players are increasingly interested in e-mobility,” she says, pointing to countries like Kenya, Ethiopia, Senegal, and Côte d’Ivoire that are incentivizing the uptake of EVs.

Funding and Support for Electric Mobility

As many as nine countries have allocated parts of their Global Environment Facility funding to support electric mobility initiatives. UNEP, through its Global E-Mobility programme, is assisting African nations in developing policies to transition from fossil fuel mobility to electric alternatives. The agency is looking forward to clearer commitments from countries regarding the timelines for phasing out internal combustion engine (ICE) vehicles. Countries like South Africa, Mauritius, Seychelles, Rwanda, and various North African nations are emerging leaders in the EV market. “Governments are reviewing their taxation structures and adopting electric vehicle standards to promote EV uptake,” Akumu adds. In Kenya alone, approximately 50 startup companies are focused on electric two- and three-wheelers, with 18 e-mobility companies identified by May 2021, and more emerging rapidly.

East Africa: The Hub of E-Mobility

East Africa is pivotal in the continent’s shift toward electric mobility. Rwanda is leading in promoting e-mobility through policy measures such as reduced electricity tariffs for EVs, zero VAT on EV consumables, exemptions from import and excise duties, and rent-free land for charging stations. Kenya has gained significant momentum, setting a target for 5% of all newly registered vehicles to be electric by 2025.

“In Kenya, 64% of market players in e-mobility have invested in local assembly,” states the Kenya-based Association for Electric Mobility and Development in Africa (AEMDA). The demand for EVs, especially in the two- and three-wheeler segments, is expected to rise, as they are more affordable than traditional four-wheelers.

International Support and Future Prospects

Throughout this transition from ICE to electric mobility, African players are supported by Indian and Chinese suppliers, who provide essential technical knowledge and materials. Adapt Motors Private Limited has been active in Kenya and other East African regions since 2020, supplying three-wheeler and two-wheeler electric vehicles. With strategic partnerships and a five-year plan, the company envisions a promising future in the Africa electric vehicle market.

Key Considerations for the EV Market

 As the Africa electric vehicle market continues to expand, critical questions arise about its overall size and the necessary infrastructure for widespread adoption. This includes understanding international charging standards for electric vehicles and addressing the cost of charging EV, which varies based on location and technology used.

In conclusion, the electric mobility landscape in Africa is rapidly evolving, driven by innovative startups and supportive government policies. This progress sets the stage for a sustainable transportation future across the continent.