Oil dealers storm EV charging business

From the newsletter

Vivo Energy Maroc, which markets and distributes Shell-branded fuels and lubricants in Morocco, has unveiled a new modern fuel station that includes DC fast chargers for EVs. It is the latest example of how top oil dealers are investing in EV charging in key markets in Africa. Besides Shell, TotalEnergies and BP have also set up various charging points.

• Petrol stations chains are investing in EV charging stations in the recognition that fuel vehicles, which are their core business, will eventually face strong competition from EVs.  

• In Africa, oil companies will play a key role in making EV charging widely available. They have more capital than most EV charging startups as well as the required real estate. 

More details

• Shell is one of the leading fuel retailers in Africa, with thousands of service stations across the continent. Besides Morocco, the company has also established EV charging stations at some of its outlets in South Africa and Kenya. Globally, the Dutch firm has over 70,000 public charge points in 30 markets.  

• French oil giant TotalEnergies is also accelerating its investment in EV fast charging stations in key markets. The company currently has more than 13 charging stations in Kenya, which are partly powered by solar energy. It also has charging points in Ethiopia, Ghana, and Uganda.

• BP, through its bp pulse brand, is also actively entering the EV charging market in Africa, with a primary focus on South Africa. The British oil company has launched pilot projects with EV charging stations in major cities like Johannesburg and Cape Town and plans to expand the service to other retail; outlets across the country.

• While oil multinationals like Shell, BP and TotalEnergies are leading the investment in EV chargers among oil firms, smaller oil marketing companies could follow their lead. The continent is home to thousands of oil firms, some of which operate only a handful of service stations. The low margin nature of the oil retail business could see an increasing number of these dealers incorporating charging stations to maximise their earnings.

• This comes at a time when forecasts from organisations like the International Energy Agency (IEA) predict that global oil demand will peak in the coming years, some as early as 2030, due to EV adoption. Each EV on the road displaces a significant amount of fossil fuel consumption annually.

• While the number of EVs in Africa is the least globally, adoption is growing. For instance, African countries imported 19,386 EVs from China – the world’s main EV producer - in 2024, more than double the 7,287 units they imported in 2023. The numbers include both pure passenger electric cars and plug-in hybrid passenger cars. This is expected to grow further in 2025, during which global EV sales are predicted to cross the 20 million mark.

Our take

• There is potential for acceleration in the rollout of EV charging stations by major oil companies like Shell, TotalEnergies, and BP, moving beyond pilot projects to broader networks in their key African markets (South Africa, Kenya, Uganda, Ghana, Ethiopia, Morocco).

• As Africa’s EV market grows, the significant capital and real estate advantage of oil majors will likely lead to them dominating the high-capital expenditure charging infrastructure. However, smaller, independent oil marketing companies will also begin to integrate charging stations to maximize earnings and remain competitive.

• Given the prevalence of two and three-wheelers in many African cities, the next phase of EV charging development will likely see a stronger focus on tailored solutions for these vehicles, including widespread battery swapping networks and decentralised charging points.