Africa counts gains as sixth World EV Day is marked

From the newsletter

Electric mobility stakeholders across Africa yesterday celebrated the World EV Day marked on September 9^th annually to promote EVs, provide education, and drive policy change. As the world moves forward in adopting EVs, Africa is beginning to embrace this shift, with major developments in infrastructure and policy, signalling a promising future for the continent. 

• While Africa’s EV sales volumes remain tiny, the pace of growth is skyrocketing. Hundreds of thousands of electric motorcycles have been sold to date, while electric car sales more than doubled in 2024. Similarly, new companies are venturing into smaller segments like electric bicycles, tri-cycles and quadricycles. 

• High prices remain the single biggest stumbling block for EVs, partly due to steep taxes. The continent also lags behind in charging infrastructure, while electricity access remains a challenge. At the same time, many countries are yet to put in place pro-EV policies, stifling adoption. 

More details

• Countries such as Kenya, Rwanda, and Ethiopia have begun taking decisive steps to encourage electric mobility by introducing incentives like tax breaks, import duty waivers, and reduced levies on EV components. These policies are aimed at making EVs more affordable while also attracting foreign manufacturers to set up shop locally. Rwanda, for instance, has gone as far as scrapping VAT on EVs entirely, while Ethiopia banned importation of fuel vehicles. 

• A growing number of companies are establishing assembly plants in Africa, driven both by government incentives and the high costs of importing fully built EVs. Firms from China, India, and even homegrown African startups are focusing on assembling electric motorcycles, vans, and three-wheelers locally. This trend not only reduces final vehicle prices but also creates jobs and strengthens supply chains. 

• Beyond private ownership, EVs are slowly making their way into Africa’s public and commercial transport systems. Bus companies in Uganda and South Africa are testing electric buses on city routes, while logistics operators in Nigeria and Kenya are piloting electric vans for deliveries. These experiments are important because they target the most polluting and high-traffic segments of the transport sector. 

• While the continent still faces challenges with grid reliability and electricity access, innovative solutions are being rolled out to keep EVs on the road. Solar-powered charging stations are being deployed in both urban and rural areas, offering renewable and off-grid power options. At the same time, battery-swapping networks are proving popular for motorcycle taxi operators, reducing downtime and addressing range anxiety. 

• Investors are starting to take Africa’s EV sector seriously, with global venture capital and impact funds channeling millions of dollars into startups. In the last two years, dozens of EV companies have raised tens of millions to scale up operations, build charging networks, and expand their fleets. This growing flow of capital is a strong vote of confidence in Africa’s ability to transition to cleaner transport. 

• Despite the progress, affordability remains the single largest obstacle to widespread EV adoption in Africa. Batteries, which make up more than 40% of an EV’s cost, are still expensive, and financing options for consumers are limited. As a result, many buyers continue to prefer cheaper, used petrol or diesel vehicles that dominate African roads. 

• The long-term prospects for electric mobility in Africa remain strong, especially in the two- and three-wheeler segments where demand is highest. With a young and tech-savvy population, rising urbanization, and growing commitments to climate action, the continent is well-positioned to leapfrog into cleaner transport solutions. 

Our take

• The majority of electric motorcycles are now being produced locally using imported parts, mainly from China. The next step for the continent’s assemblers is to increase the local content, which will make it easier and faster for riders to find spare parts. 

• Africa has been primarily a consumer of EVs and related products. The coming decade will likely determine whether Africa becomes a passive adopter or an active leader in shaping the global EV transition. 

• Without government support with EV-friendly policies such as lower taxes, EV prices will remain high in Africa, which will continue to slow down adoption. Europe can serve as a good example of how government mandates can drive the growth of EVs.