Oil and gas giant to build 100 charging points in 3 years

From the newsletter

Angola’s national oil company, Sonangol, plans to roll out over 100 electric vehicle charging points within by 2028. The company plans to establish 70 of the chargers during the current financial year, 30 of which will be located in the capital Luanda. The oil and gas company seeks to cut its carbon footprint by investing in solar and EV charging stations.  

• Sonangol is one of the largest companies in Africa and the second largest oil producer on the continent with assets exceeding $51 billion. Building 100 charging points will make it Angola’s biggest charging company. 

• Several oil majors (Shell, TotalEnergies, BP) are investing in EV charging infrastructure as part of strategic moves to diversify portfolios and invest in renewable energy and transition technologies. 

More details

• Sonangol has also launched a mobility app, which offers customers insight into EV charging infrastructure in the country of more than 38 million people. In addition to EV chargers, the company continues to advance its solar strategy, with its Quilemba solar project set to start operations in 2026, bringing 35 MW online in the first phase and 45 MW in the second phase. 

• There are less than 500 electric cars in Angola, which means that demand for charging is not high. The country imported only 18 electric cars from China, the world’s main source of EVs, in 2023. In 2024, it imported only nine electric cars from the Asian giant. This low penetration of EVs means that the charging business is not yet particularly lucrative for investors. 

• A state-owned behemoth, Sonangol can afford to put capital into establishing EV charging infrastructure without immediate pressure for financial returns. Angola's government is however developing policies and providing incentives, such as lower import taxes, to encourage EV adoption. 

• Sonangol joins the growing list of oil companies in Africa that are building EV charging networks. In Ivory Coast for example, Petro Ivoire, one of the country’s leading oil companies, has established 17 electric vehicle charging stations with 25 charging points. In South Africa, BP plans to build 40 new fuel stations with EV chargers. Shell and TotalEnergies are also implementing numerous EV charging infrastructure projects across the continent. 

• Besides oil majors, electricity utilities, water companies, telecommunications providers, banks and other businesses are also setting up EV chargers at their premises. While some of these stations are for use by staff, others are open for the public to use. In Kenya for example, national utility Kenya Power has set up two charging stations, which are open to the public for free. In Ethiopia, Ethio Telecom has established a growing network of super-fast EV charging stations for public use. 

• The investments by large corporate entities, both state-backed and non-state commercial entities, will play a pivotal role in closing the huge EV charging stations gap in Africa. At the same time, the growing electric car sales across the continent is birthing new dedicated EV charging and battery swapping companies at a rapid speed as the business is starting to make financial sense. 

Our take

• Sonangol's plan to build a large-scale charging network will directly address Angola’s "chicken-and-egg" problem where low EV adoption is a barrier to charging infrastructure investment, and a lack of infrastructure is a barrier to EV adoption. 

• The company’s investment, alongside similar moves by Shell, TotalEnergies, and BP across Africa, demonstrates a strategic shift for oil and gas companies. They are not simply being displaced by renewable energy but are actively positioning themselves as central players in the new energy landscape. 

• Unlike the fuel business which is done by dedicated companies, the widespread availability of electricity and solar power means that all businesses that have access to these can set up EV chargers. This, coupled with the fact that the majority of EV owners charge their vehicles at home, will close the charging gap faster.