Tiny Djibouti is the largest importer of EVs in Africa

From the newsletter

Djibouti, one of the smallest countries in Africa, appears to be the largest importer of electric cars on the continent. Chinese government data shows Djibouti imported 7,636 EVs from China, the world’s largest producer of EVs, in 2024. The small Eastern African country seems to account for 39.3% of EVs brought to Africa, more than double of any other country.     

• This may be due to high demand for EVs in Djibouti, but more likely is linked to the major foreign military bases in Djibouti. The local port is also a key transshipment centre for goods destined to other countries.  

• With a population of just 1.1 million, Djibouti may not hold on to this position for long. Egypt, the second largest importer of EVs in Africa with a population of 118 million people, is the country most likely to take Djibouti’s crown. 

More details

• China dominates the global EV market, producing more than 70% of all EVs globally. It is the main source of EVs for Africa, with leading Chinese manufacturers like BYD, Geely, Chery, Xpeng, Neta, Nio, JAC among others quickly making inroads on the continent. With minimal EV production in Africa, tracking data of imports from China offers a good bird's eye view of the sector.

• The high number of EVs being imported by Djibouti is surprising, but the government is implementing policies to encourage EV adoption, including discounts for EV purchases and incentives for charging station development. Its flat terrain and steady weather conditions make it well-suited for EVs.

• Egypt is the second largest importer of EVs in Africa, having purchased 3,317 units in 2024. Ethiopia, which put a total ban on importation of fuel vehicles in January 2024, saw its EV imports go up to 1,971 last year, while South Africa emerged fourth with 1,241 EVs.

• Other top EV importers from China are Cape Verde (338), Ghana (270), Ivory Coast (318), Madagascar (351), Mauritius (677), Morocco (903), Nigeria (740), Tunisia (371), Rwanda (180) and Kenya (167). 

• In total, African countries imported 19,386 EVs from China in 2024, more than double the 7,287 units they imported in 2023, according to official Chinese government data. The numbers include both pure passenger electric cars and plug-in hybrid passenger cars.

• The 2024 imports were valued at $344.6 million, translating to an average price of $17,700 per vehicle. The imports in 2023 cost $158.3 million, which is an average cost of $21,700 per vehicle. This highlights the significant drop in the average cost of EVs coming in from China, which is helping accelerate sales.

• EV sales in Africa are expected to rise further, driven by a global decline in the prices. Major components such as battery packs are expected to become cheaper, exerting downward pressure on car costs. In 2024, battery pack prices fell in all markets, but the extent of the drop varied significantly. The fastest declines were seen in China, where prices fell nearly 30% in 2024, compared to 10-15% in Europe and the US. 

Our take

• Africa imports fuel vehicles from several countries including Japan, South Korea, Germany, UK and the US. For EVs however, it relies primarily on China. This overdependence on a single market exposes the continent to major risks in case of disruptions in China.

• Japanese auto companies like Honda, Toyota, Lexus (a luxury brand of Toyota), Nissan, and Mitsubishi Motors and German brands such as Mercedes-Benz, Volkswagen and BMW have traditionally dominated the African market. They are now increasingly producing both pure EVs and hybrids, and this could see them pose a growing threat to Chinese EV companies. 

• Batteries are still the most expensive component of an EV. Falling prices of battery packs—especially the nearly 30% price drop in China in 2024—suggests that African nations will continue to see more affordable EVs. This will likely encourage higher adoption rates on the continent, given how price-sensitive it is.