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Independent News Express > Blog > Africa > Electric Cars Finding Ways Into African’s Markets
Africa

Electric Cars Finding Ways Into African’s Markets

Last updated: 2024/02/09 at 10:09 PM
1 year ago
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Electric Cars Finding Ways Into African's Markets
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Africa has made significant breakthroughs in the race towards eco-friendly vehicles. One notable development is the introduction of the aCar, an electric car specifically designed for use in rural Ghana. Priced at around US$10,000, the aCar is affordable and easy to maintain, making it an ideal option for communities with limited resources.

Additionally, there is a growing momentum towards the adoption and manufacturing of electric vehicles across the continent, signaling a shift towards cleaner and more sustainable transport in Africa.

These breakthroughs represent a new chapter in Africa’s growth story, embracing innovation, sustainability, and resilience in the automotive industry.

The transition to electric vehicles is not only about transportation but also presents economic opportunities and sustainable development. Africa’s potential in the electric vehicle and clean energy market is also being recognized, with the continent eyeing a booming market worth trillions of dollars.

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Kenya has signed a number of agreements with Japanese firms, including the giant Japan’s Toyota Tsusho Corporation, that could unlock nearly Ksh99 billion ($620.7 million) in investments in green energy and automobile assembly.

“In Tokyo, Japan, witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation and later toured the Toyota Motamachi Factory,” posted Dr William Ruto on his official X (formerly Twitter) account on Wednesday.

“The pact entails Ksh15 billion ($94 million) Meru Wind Farm Energy, Ksh8 billion ($50.2 million) Isiolo Solar Energy, Ksh800 million ($5 million) Thika Kenya Vehicle Manufacturers (KVM)’s initial investment, Ksh75 billion ($470.22 million) Menengai Geothermal Plant and Electrified Vehicles promotion.”

Ruto further revealed that the Kenyan delegation was engaging Toyota to consider setting up a vehicle manufacturing plant in Kenya to tap into the growing demand for its products deliberations, which he said, were making positive progress.

“The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower. I am glad that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up in Kenya,” wrote Dr Ruto.

The Meru Wind Farm project is an envisioned 400-megawatt wind power set to sit on an 18,700-acre piece of land in Tigania East Sub-County while in Isiolo, the solar access programme was initially a World Bank-funded project that sought to increase access to clean energy to reach over 5,000 households.

On Toyota’s investment in KVM, the deal was first signed between the Japan-based firm and the Kenyan government during the G7 Session of Trade Ministers held in Osaka, Japan in October last year, to revamp the local assembly plant whose financial constraints have limited its production capacity.

The pact was at the time announced by Trade Cabinet Secretary Rebecca Miano who however declined to disclose the nature of Toyota’s proposed investment.

“Noting that the Kenya Vehicle Manufacturers, one of the local automotive assembling facilities in Kenya, is experiencing financial difficulties, it was agreed that Toyota Tsusho, as one of the stakeholders in the industry, steps in to save the facility from eminent collapse,” stated Miano last October.

KVM puts together multiple vehicle brands including those from Crown Motors (Nissan), PSA Group (Peugeot), and CMC Motors (Nissan Diesel, Eicher, and MAN).

It also builds bodies for various commercial vehicle brands such as Hyundai, Isuzu, Mitsubishi, Tata, Hino, and Scania among others.

The most popular electric vehicle models in Africa include the Hyundai Kona, the BMW i3, the Mini Cooper SE, and the Volvo XC40 Recharge. These models have gained traction in countries like South Africa, where they have seen significant sales and market presence.

Additionally, there is a growing momentum towards the adoption and manufacturing of electric vehicles across the continent, signaling a shift towards cleaner and more sustainable transport in Africa.

The African electric car market is also dominated by a few companies, including Volkswagen AG, BMW AG, Stellantis N.V., and others, reflecting the global presence of major automotive manufacturers in the region.

The electric vehicle (EV) charging options in Africa include various charging types, voltage levels, and charger types. The Africa EV charging market offers off-board top-down pantograph, on-board bottom-up pantograph, and charging via connector options.

These are further categorized based on charging voltage levels, such as level 1 (<3.7 kW), level 2 (3.7–22 kW), and level 3 (above 22 kW). Charger types include slow chargers and fast chargers, with options for AC, DC, and inductive charging.

The application of EV charging spans commercial and residential sectors, with specific focus on commercial public EV charging stations, on-road charging, and commercial private EV charging stations.

The charging infrastructure is also evolving with the introduction of IoT connectivity, offering non-connected charging stations and smart connected charging stations (networked). The charging standards available in Africa encompass CCS, CHADEMO & GB/T.

The lack of charging infrastructure has been a barrier to EV adoption in Africa, but there are positive developments. For instance, in South Africa, the growth of EV charging infrastructure is closely tied to the increasing sales of electric vehicles.

To meet the rising demand, both public and private sectors have invested in expanding EV charging networks, with a focus on fast chargers that can charge EVs in under 30 minutes.

Furthermore, various African countries have implemented measures to support the development of EV charging infrastructure. For example, Tunisia has reduced custom duties on electric vehicle charging equipment, while Uganda has waived import duty on certain electric vehicles and introduced a special electricity tariff on charging stations.

In South Africa, there are numerous charging stations available in different regions, with a concentration of stations in major cities and metropolitan areas.

The installation of electric car charging stations is gaining momentum in Africa, with a focus on countries such as South Africa, Morocco, Kenya, and to a lesser extent, Rwanda. South Africa, in particular, is the most advanced e-mobility market in Africa, with a significant number of electric vehicles (EVs) and a growing EV charging infrastructure. The country had about 1,000 EVs in January 2022, out of a total fleet of 12 million, and is investing in expanding EV charging networks, including fast chargers that can charge EVs in under 30 minutes.

Other players in this market include e-mobility firms, Drive Electric, ChargeNet, and Kenya Power, the country’s electricity distributor, which has announced partnership plans with mobility firms for electricity supply.

Additionally, Tunisia has reduced custom duties on electric vehicle charging equipment, while Uganda has waived import duty on certain electric vehicles and introduced a special electricity tariff on charging stations.

These measures indicate a growing awareness and acceptance of electric vehicles in the market, driven by environmental concerns, rising fuel prices, and the need for cost-effective transportation solutions.

While the EV charging infrastructure is still in the early stages of development in Africa, the continent is witnessing a surge in EV sales and infrastructure developments, particularly in countries like South Africa, which is closely tied to the increasing demand for accessible charging stations.

Nigeria has seen significant breakthroughs in the development of eco-friendly automobiles. Notable advancements include the creation of the ABUCAR 2 and the Autonov III, two electric vehicles engineered for efficiency and powered by electricity and solar batteries.

These innovations, developed by Nigerian students and car enthusiasts, demonstrate the country’s commitment to sustainable mobility and home-grown concepts in the automotive industry.

Furthermore, Nigerian entrepreneurs and startups are actively contributing to the transition to eco-friendly vehicles.

For instance, Mustapha Gajibo’s startup, Phoenix Renewables Limited, is launching a homegrown electric-vehicle industry in Maiduguri, with plans to compete on a global scale and alleviate the country’s reliance on traditional gasoline-powered vehicles.

Additionally, Nigeria is set to introduce a three-wheeler electric vehicle (e-trike) as part of a transformative leap towards sustainable transportation, signaling a significant move towards eco-conscious mobility in the country.

These developments underscore Nigeria’s progress in embracing innovation and sustainability in the automotive sector, marking a pivotal shift towards eco-friendly automobiles.

*Source: Nature News

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