Egypt raises EV charging prices by 93%

From the newsletter

The cost of charging an EV in Egypt has almost doubled after the government raised electricity prices for charging stations by 93% to EGP 2.34 per unit (equivalent to $0.48). This is the first price change since February 2022. Home charging will not be affected as consumers can continue to charge electric cars just like any other appliance using the home tariff. 

• Egypt has also capped the price mark-up at charging stations. They may only go 45% above the wholesale price for the slower AC charging and 180% for fast DC charging.  

• At higher operating costs, EVs will lose their biggest advantage over fuel vehicles, and this could depress demand. 

More details

• While home charging has been spared from the increase for now, this will not last long as Egypt prepares for a new domestic electricity tariff adjustment. Reports in Egypt indicate the government is planning to increase power prices by more than 25% starting October. This will make it costlier to charge EVs at home. 

• Despite the price increase, Egypt still has one of the lowest electricity prices in Africa. At the same time, Egypt's fuel prices have increased several times since March 2024, with a significant hike occurring in April 2025, raising prices by 12.8-14.8% for most vehicle fuels. This could lessen the impact of the charging price increase on EVs demand. 

• Egypt has become a major player in Africa’s EV industry. The North African country imported 3,317 electric cars from China, its main source of EVs, in 2024, the second most in Africa only behind Djibouti. It also imports EVs from South Korea and Japan. While German brands like BMW, Volkswagen, Mercedes-Benz and Porsche have been dominating EV sales in Egypt, Chinese companies like BYD, Xpeng, Nio and Zeekr are becoming the biggest sellers. 

• Electricity prices remain volatile in Africa, where the majority of countries adjust prices monthly. Others like South Africa change prices yearly. These price changes normally affect the cost of charging, with charging companies often passing on price increases to consumers. This is leading to increased investments in solar by charging companies to reduce their energy costs. 

• As we reported yesterday, Spiro has signed an agreement with the Catholic Church to establish solar-powered swapping stations at their churches in Kenya. Last year, Ampersand partnered with CrossBoundary Energy to establish a solar PV system to power its charging stations. In South Africa, Zero Carbon Charge is investing in 120 off-grid solar charging stations. This trend is expected to continue as the prices of solar panels and batteries continue to decline globally. 

• Electricity prices are expected to decline in the long-term in Africa as countries step up investments in cheaper renewable energies like solar, hydropower and wind. This is expected to result in lower power tariffs and charging costs, making EVs cheaper to use. Further, more people are investing in own-source power generation, especially home solar systems. This essentially gives them very cheap energy to charge their EVs. 

Our take

• Despite the influx of cheaper electric cars, especially from China, the high upfront cost of new EVs remains a significant barrier for many Egyptian consumers. As charging costs rise, the affordability of owning an EV will become even more critical.

• The significant price increase for public charging will likely dampen the enthusiasm of potential EV buyers who do not have access to home charging. The 180% premium for fast DC charging, which is crucial for long-distance travel, could make it a less economically viable option.

• Power tariff increases will push EV owners and potential buyers to seek alternative solutions. This will likely lead to a surge in investments in residential solar systems to generate their own power, providing a cheaper and more stable energy source for charging their vehicles.