Tech Watch: Off-grid chargers next frontier in Africa’s mobility

From the newsletter

Africa’s low electrification rate, with only about 52% of its population connected to the grid, is hindering EV adoption across the continent. In 2024, South African charging firm Charge announced plans to install 120 off-grid stations by 2026, and the growth of such stations is fuelling hopes of overcoming this hurdle.

• Off-grid EV charging solutions provide independence from grid outages, allowing owners to power their vehicles during extreme weather events or in remote locations without established charging infrastructure.

• These stations often come with integrated battery storage systems to ensure a continuous power supply, even during cloudy periods or at night. This allows for consistent charging services. Further, the cost of building off-grid chargers is reducing due to falling prices of solar panels and storage batteries.

More details

• One of the companies leading the off-grid charging stations race is South African startup Charge (formerly Zero Carbon Charge). The company plans to build 120 off-grid stations although it has so far done only one, taking roughly a year to build. It has now extended the completion target to 2026. 

• Off-grid charging stations could be especially pivotal for accelerating the uptake of electric motorcycles in rural areas in Africa, most of which lack access to electricity. Demand for electric motorcycles, which are mainly used to transport individuals, is growing faster than electric cars as they are economical.

• The battery-swapping technology is pivotal for off-grid stations. Because their charging times are longer compared to grid-connected stations, swapping is the more efficient model. The stations charge batteries, mainly used by electric motorcycles, which are then swapped by motorists. 

• The number of off-grid charging stations in Africa however still remains low. Not many investors are joining the market yet as the penetration of EVs is still tiny. Investment is currently concentrated in grid-tied charging stations, which are mainly located in major cities and towns where the presence of EVs is higher.

• Yet, Africa probably has the biggest potential for these stations not only due to its low electrification rate but also abundance of renewable energy, mainly solar and wind. Africa receives more sun hours in a year than any other continent, making it easier to fill storage batteries during the day.

• However, the path to investing in off-grid stations in Africa is filled with challenges that investors must overcome, as highlighted by Charge’s hitches in South Africa. African countries must streamline national and regional energy policies to make it easier for investors. 

Our take

• Hybrid charging stations, which combine electricity supply from the grid with their own generated power, will define future off-grid stations. Such stations will be more reliable as they can use the grid when their stored power is exhausted or during poor weather conditions.

• The availability of off-grid charging stations will drive the adoption of electric motorcycles more than any other vehicle. Motorists in remote areas currently stay away from buying electric motorcycles, whose prices have dropped massively in recent years, due to a lack of charging options. 

• Telecommunications companies have a wide network of booster stations, a good number of which are in remote areas. Some of these stations are already fitted with solar panels to generate electricity on-site. These stations can be utilized as off-grid charging stations.