Why lead-acid batteries are limiting Tanzania’s EV push

From the newsletter

Electric two-wheelers, mainly motorcycles, scooters, and bicycles, make up 44% of Africa’s EV market, according to the Africa E-Mobility Report by the Africa E-Mobility Alliance. Tanzania leads with over 10,000 units already on the road, though most still rely on lead-acid batteries, highlighting an opportunity for companies offering lithium-ion alternatives.

• The affordability of lead-acid scooters has been the main driver of customer adoption in Tanzania. With financing options such as DEEM Finance, lithium-ion models could become more accessible and competitive.

• Electric vehicle adoption in Africa is largely commercial, with 60–80% of urban residents depending on shared or public transport. However, Tanzania lags in faster adoption as scooters are mainly used for private transport, diverging from regional trends.

More details

• Lithium-ion batteries provide higher energy density, lighter weight, and longer lifespans compared to lead-acid batteries. Lead-acid batteries, though cheaper upfront, are heavier, less efficient, and require frequent replacements. This makes them less practical for sustained EV adoption in Tanzania.

• Asian suppliers have reduced EV purchase prices, making them cheaper than petrol vehicles. However, this affordability is offset by recurring replacement costs, particularly for lead-acid batteries. As Paschal Giiki of Enabel notes, this undermines the long-term economic viability of EV ownership.

• The demand for more durable batteries has opened opportunities for lithium-ion–focused companies. Tanzania now has over 26 active EV startups, doubling in number within the past year. Firms like eMo Mobility, TRí, Chaja Africa, and Eko Goble are leading this transition.

• Spiro’s expansion into Tanzania this year signals strong market potential. The company has maintained success in every country it has entered, making its arrival a positive endorsement. This should reassure investors that Tanzania’s EV market is ready for growth.

• Tanzania has 86% electricity access in urban areas, providing a foundation for early e-mobility adoption. The country also benefits from abundant green energy in its grid. Surplus power from the Julius Nyerere Hydropower Station and Ethiopia’s GERD supports future EV scaling.

• To fully unlock its EV potential, Tanzania needs a comprehensive e-mobility policy ecosystem. Currently, only fiscal incentives are available, according to the Africa E-Mobility Alliance. Broader policies would attract investors and accelerate ecosystem-wide adoption.

Our take

• EV financing in Tanzania remains largely untapped, yet it holds the key to overcoming the high upfront costs of ownership for two-, three-, and four-wheelers. Expanding access to financing will also attract more investors to the country’s e-mobility sector.
  

• Battery swapping has emerged as a proven model for two- and three-wheelers across Africa. Adopting a pay-as-you-go approach could be a game changer for Tanzanian e-mobility startups.
  

• Swapping batteries reduces the risks of maintaining costly battery infrastructure. It also helps phase out reliance on lead-acid batteries, paving the way for more sustainable long-term adoption of electric mobility.