Policy Tracker: Egypt raises charging prices

From the newsletter

Egypt’s decision to increase electricity prices for charging stations by 93% to EGP 2.34 per unit (equivalent to $0.48) was the main policy change in Mobility Rising’s monthly Policy Tracker. The increase was announced early this month and is Egypt’s first price change since February 2022. It is not yet clear how big an impact this will have vehicle sales.  

• Mobility Rising tracks policy changes affecting EVs across Africa. This includes changes in tax rates, incentives, import restrictions, charging tariffs, product standards among others. The tracker is updated monthly.

• The majority of African countries start their fiscal years in July or January, which is when most policy changes are implemented. 

More details

• In South Africa, prices for electricity supplied by national utility Eskom are set to increase by a bigger margin starting next year after a review by the energy regulator. Electricity prices will climb by 8.76% in the next financial year, up from the previously approved 5.36%, and by 8.83% the year after, compared with 6.19%. This will increase the cost of EV charging both at home and at public charging stations. 

• On the other hand, a number of policy changes announced or implemented in Africa this year have been positive. For example, we reported in August that companies assembling electric two-wheelers in Uganda will be exempt from paying import duties and value-added tax (VAT) on parts and components required for their operations. These measures are part of the country’s broader National E-Mobility Strategy. 

• At the same time, South Africa in March this year also announced that it would spend $54.27 million to support the local production of new energy vehicles and batteries, as well as related manufacturing projects. The country is the largest automotive manufacturing hub in sub-Saharan Africa, hosting brands such as Toyota Ford, Isuzu, Volkswagen and Mercedes-Benz. 

• Nigeria’s National Action Plan introduces tax breaks aimed at reducing the steep upfront costs of EVs. These incentives are designed to make EVs more accessible to both consumers and businesses, addressing the financial barriers that have long hindered their adoption. The West African country has introduced reduced import duties and VAT exemptions. For manufacturers and assemblers, the policy offers a 10-year tax relief for companies producing EVs locally. 

• In Morocco, a leading EV production hub, the government continues to offer significant incentives, including a 100% exemption on VAT and customs duties for fully electric vehicles, making them substantially cheaper for buyers. The government also provides purchase subsidies for two-wheeled electric vehicles and is investing heavily in local EV production and expanding its public charging infrastructure. 

• The policy landscape remains volatile in Africa, which has affected the confidence of investors. We have reported on some cases where investors have pulled out of a number of African markets because of unsupportive EV policies. Tax rates are also changed frequently, creating unpredictability for investors. For Africa to become a serious EV producer, these challenges must be ironed out.  

Our take

• African governments need to reduce the frequency of abrupt tax and tariff shifts to give investors confidence that policies will remain consistent over the medium to long term.

• While electricity tariff reviews are inevitable, governments should pair them with targeted EV incentives such as charging subsidies, duty exemptions to avoid pricing consumers out of adoption. 

• Harmonizing EV-related taxes, standards, and incentives across African blocs such as EAC, ECOWAS, and SADC would create larger, predictable markets that attract investment in assembly and infrastructure.