Electric heavy machinery is here

From the newsletter 

Sany Heavy Industry, the third largest heavy equipment manufacturer in the world, has introduced electric heavy machinery for the first time in Africa. The Chinese company launched the equipment, including electric loaders and electric trucks, in Zimbabwe last week. They are mainly used in the construction and mining industries to dig, lift and move materials.  

• Sany joins the growing list of global heavy construction equipment manufacturers that have introduced electric models in Africa following in the footsteps of the likes of John Deere, Volvo, JCB, Komatsu and Caterpillar. 

• While more expensive to purchase, electric machinery is cheaper to operate than diesel ones as electricity is generally less expensive than diesel on a per-hour basis. EVs also have fewer moving parts, reducing maintenance costs.    

More details

• Sany operates in more than 50 African countries, according to Sany Global. The company has a strong presence with 15 subsidiaries and over 400 employees across the continent. Sany's equipment is used in numerous infrastructure projects throughout Africa.

• The company’s most popular equipment includes excavators and concrete machinery. They also produce a wide range of other heavy equipment, such as cranes, road machinery, and port machinery including excavators, bulldozers, cranes, backhoes, and dump trucks. 

• The emergence of electric construction machinery comes at a time when competition in the African market is intensifying, driven by rapid urbanisation, mega infrastructure projects, mining expansion, and now, the green transition. South Africa, Egypt, Kenya, Nigeria, and Morocco are the most competitive and active markets.

• The US’s Caterpillar is the dominant manufacturer on the continent, using dealer networks like Barloworld (Southern Africa) and Mantrac (West and East Africa). Sweden’s Volvo Construction Equipment is also a major player, especially in the premium segment. It is strong in road machinery, wheel loaders, and mining trucks. Other top brands include the UK’s JCB, and Japan’s Komatsu and Hitachi.  

• While there is significant long-term potential for electric construction equipment and machinery in Africa, adoption will likely grow gradually and unevenly across regions and sectors. Africa is urbanising faster than any other continent, with massive investments in roads, housing, ports, and railways are driving demand for construction equipment.

• Clean and quiet electric heavy machinery and equipment is especially valuable in dense, growing cities like Nairobi, Lagos, Johannesburg, and Cairo, where noise and emissions are major concerns. As some of these equipment operate in small zones like within warehouses, mines, factories and construction sites, range, a major pain point for EVs, becomes less of an issue.

• Another factor that will likely play in favour of electric heavy machinery is that diesel is expensive and supply chains are often unreliable in remote regions. Electric machinery offers much lower fuel and maintenance costs, which appeals to contractors operating on tight margins. 

Our take

• Electric heavy machinery and equipment come with a hefty price tag, leading to affordability issues even for well-capitalised companies. The deployment of pay-as-you-go, hire purchase, leasing and rental models for the use of electric equipment will be pivotal for increasing sales. 

• As many heavy machinery operate in specific locations such as mining and construction sites, solar-powered charging stations become a real alternative for charging, especially in locations that lack access to the grid. This would reduce the overall total cost of owning the machinery. 

• Electric machinery comes with advanced connectivity solutions, which allow operators and site managers to optimise traffic flow, track equipment and personnel whereabouts, and promote smoother, safer, and more productive operations. This will play a pivotal role in enhancing efficiency, productivity, and fuel and energy efficiency.