Egypt to launch first local electric car in May

• Egypt will now join a handful of African countries that have made their own electric cars. Others that have accomplished this feat include Morocco, South Africa, Nigeria and Burkina Faso. The car’s price is within the range of most ICE vehicles, which will make it competitive.

• The launch of the car will however not satiate the North African country’s ambition to become a regional electric car manufacturing hub. Egypt has signed agreements with other auto firms, mainly Chinese such as FAW, BAIC and Alkan Auto, to make affordable electric cars in the country.

• Our take: Egypt will bleed billions of US dollars to subsidise local production of electric cars that can compete on quality and price with Chinese imports. It therefore has to strike a balance between protecting its budding auto industry and letting market forces take their course… Read more (2 min)

SolarTaxi secures EV financing deal with Ghanaian bank

• SolarTaxi’s US dollar financing aligns with its EV pricing, as the company already sells its EVs in the greenback. This approach helps mitigate currency fluctuations and ensures pricing stability, but it may pose affordability challenges for local consumers who earn in Ghanaian cedis.

• Banks are focusing on EV car financing, while asset financing firms like M-Kopa, MAX, and Watu Credit dominate two- and three-wheeler financing. This divide shows how banks target wealthier buyers while asset financiers drive mass adoption in emerging markets.

• Our take: Lease financing could accelerate electric car adoption in Africa. Banks stand to win with their lower interest rates compared to asset financing firms… Read more (2 min)

African schools shape the top fund raisers

• The continent still lags behind elsewhere when it comes to adequate skilling of its mobility workforce. Not only does it produce these professionals in small numbers, but its finest talents are routinely poached by global automakers.

• It is therefore encouraging to see a growing mix of Africa-schooled mobility leaders attracting significant investment. The combination of local and international education and experience among founders is something that will serve the continent well in the long term.  

• Our take: That the majority of mobility founders who raised money in February were educated in Africa was an exception, not the rule. Most of the continent’s mobility companies were founded and are led by foreign investors... Read more (2 min)

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