Policy uncertainty slows EV adoption in Africa

• Many assemblers lack this capacity and therefore cannot enjoy the benefits. Establishing bonded warehouses is costly and time-consuming for small businesses, and therefore risks locking out EV startups. 

• Stakeholders are asking if regulations are striking the right balance between providing a favourable environment for EVs and creating a sustainable transition pathway for fuel-based vehicles.

• Our take: Governments need to be more transparent in communicating their policies... Read more (2 min)

Is Africa's EV infrastructure prepared for cyber threats?

• Earlier this month, Zero Carbon Charge, a company focused on providing off-grid charging solutions, announced plans to construct 120 off-grid charging stations across South Africa. 

• Other companies like Rubicon and GridCars have also been expanding their networks. By September 2024, GridCars had 171 charging stations, while Rubicon had over 83, with plans to build 179 more by February 2025.

• Our take: African countries need safeguards for EV cybersecurity... Read more (2 min)

We calculate the EV pecking order in East Africa

• Kenya has the highest level of investment and the most senior talent, driving its dominant position. However, the cost of powering an EV for consumers in Kenya is still not all that attractive. 

• Despite its smaller size and less dynamic economy, Rwanda follows a similar pattern. It does less well on funding and talent than Kenya, but still significantly better than others. 

• Our take: Governments must recognise they are not operating in a vacuum... Read more (2 min)

• Challenges and opportunities in SA’s EV transition: The South African government is being urged to adopt electric vehicles to foster trust and accelerate market disruption, by the Portfolio Committee on Science, Technology, and Innovation. SA alone accounts for over 1% of GHG emissions, prompting economic and environmental pressures to shift from fossil fuels to greener alternatives. Naamsa, the automotive association, predicts that government subsidies could boost EV market share from 1.45% in 2023 to 20% by 2025 and 60% by 2035. However, challenges remain, including a $66.4 billion funding gap in South Africa’s Just Energy Transition Plan, limited charging infrastructure, and market competition from Chinese automakers. (African Business, My Broadband, Businesstech)

• EV’s hidden impact in Ghana: EVs present a significant opportunity for Ghana to reduce its $2 billion annual oil import costs, alleviate pressure on the local currency, and create green jobs. Former President John Mahama has emphasised EVs as part of his "Rapid Industrialisation for Jobs" plan, advocating for policies to promote EV adoption alongside broader green technologies to drive economic growth and job creation. However, the country faces critical challenges due to a lack of skills and infrastructure, with only seven charging stations nationwide and none outside Accra. (Ghana Business News, MyjoyOnline, Modern Ghana)

• Improving operational efficiency via charging infra: Electric motorcycles are gaining traction in Africa, with their adoption being driven by the region’s significant demand for motorcycle taxis. EV companies like Kenya’s EVChaja and Benin’s Zed Motors are addressing key challenges such as long charging times and limited infrastructure by establishing battery-swapping networks. Africa’s electric motorcycle market, while still nascent, shows immense potential, with innovations like battery-swapping stations improving accessibility and operational efficiency for two- and three-wheeler drivers. (EqualOcean)

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