Policy Tracker: We reveal Africa’s latest EV policies

From the newsletter 

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, Mobility Rising’s Policy Tracker, published monthly, shows. This move is intended to reduce Uganda’s dependence on fuel-powered motorcycles and promote cleaner alternatives. 

• This was the main policy change in our latest monthly Policy Tracker, which follows the trail of policy announcements across Africa. It shows positive as well as negative impact on the EV industry. 

• Uganda is becoming a hub for electric two-wheeler assembly, boosted by its ready market of more than a million motorcycle riders.  

More details

• The Ugandan government is also removing the requirement for local e-motorcycle assemblers to pay income tax for the first five years of operation. These measures are part of the country’s broader National E-Mobility Strategy, launched in 2024, which aims to build local capacity for clean transportation technology and reduce greenhouse gas emissions. 

• During the same period, Cameroon introduced an import verification tax on used vehicles, which is a 29,813 FCFA ($52.6) fee covering inspection and identification and includes VAT. This will mainly affect fuel vehicles, which form almost all the used vehicles imported into the country. Higher prices of fuel vehicles could potentially lead to increased interest in EVs, whose prices are gradually declining. 

• Another major policy change made during the period is Senegal’s decision to raise the age limit for imported used vehicles from the current five years to 15 years. This contrasts with other African countries such as Kenya that have been reducing the age limit. Cheaper and older fuel cars are expected to flood the West African country, which is expected to negatively impact sales of electric vehicles, whose prices remain high. 

• In a month with a few changes in policies affecting EVs on the continent, stakeholders have continued to lobby governments to lower taxes on EVs. In South Africa, charging company Zero Carbon Charge has warned that the country risks losing ground in the global new energy vehicle race. “South Africa risks not only losing competitive ground to global markets but will also leave its logistics and transport sectors dangerously unprepared for upcoming carbon regulations,” Charge said. 

• At the same time, policies that were announced in previous months have started to take effect. In Egypt, the government allocated EGP 3 billion ($60,000) in its 2025/2026 budget which became effective last month to support the local automotive industry, including its accessories and components. Egypt is implementing an integrated plan to localize technology and transfer expertise, particularly in the field of electric and hybrid vehicle manufacturing. 

• Electric mobility is fairly new in Africa, and governments are racing with new regulations to keep up with the rapidly growing sector. While some countries are rolling out incentives such as tax cuts and subsidies to stimulate growth, others view the industry as a national revenue driver, introducing taxes on EVs and components. As the sector matures however, African governments are expected to be more proactive in their policy making. 

Our take

• As EV sales in Africa grow, countries are increasingly facing a dilemma on if to prioritise their short-term revenue needs, which would raise taxation, or adopt a longer-term outlook by supporting the industry to grow first before turning attention to revenue. 

• As seen in Uganda's tax exemptions, the most significant policy shifts are likely to continue targeting electric motorcycles and tuk-tuks. This is a pragmatic approach, as two-wheelers are the dominant form of transport in many African cities. 

• The future of successful EV policy in Africa should go beyond simple tax breaks. It should include things like mandated local content requirements for EV assemblers, government fleet procurement targets for electric vehicles, and regulatory frameworks that simplify the installation and operation of charging infrastructure.