This is a free preview of the upcoming Africa EVs Weekly Digest, part of the new CGSP Intelligence service.
Electric vehicles (EVs) could soon become cheaper than petrol cars across much of Africa as battery costs fall and global production grows. Yet, the many EV innovations taking root across various mobility modes remain vulnerable to external shocks. The ongoing crisis in the Middle East could either become a catalyst for the sector or bring it to its knees even before it crawls.
The easiest way to electrify mobility at this point would be to import fully built units to deal with the fuel crisis immediately. However, costs will remain a hindrance unless governments decide to forgo oil surcharges and reduce taxes on imported EVs. In the long run, this combination would reduce dependence on oil, albeit with an initial upfront cost. The fallback would be second-hand EVs, which are already starting to sell in local markets.
If e-mobility could be paired with off-grid solar charging, African countries could achieve EV cost competitiveness sooner than previously expected.
This week in Africa’s EV scene:
Used Chinese EVs hit South Africa’s Vehicle Market
For years, the price of new electric vehicles has kept most South Africans on the sidelines. Now, as pre-owned models enter the market, that barrier is easing, enabling more people to consider the switch to electric.
The shift is also giving used vehicles a second life. Instead of adding to growing e-waste, older EVs are finding new owners, extending their usefulness, and making the transition to cleaner transport a little more accessible.
Why This Matters: Second-hand cars allow more people to experience e-mobility. These older cars are also helping to build a parallel EV ecosystem, opening up new opportunities for jobs, especially in maintenance and repair.
Nigerian Company Unveils Electric Vans for Africa
NEV Electric Motors has unveiled the NEV T3, an e-van designed for African cities. The company is developing locally engineered e-mobility solutions to transform urban transportation across Nigeria and the wider African market.
Why This Matters: The use of electric vehicles in public transport remains rare, but NEV Motors could become the go-to solutions provider for those seeking relief from the unpredictability of fuel availability and high costs.
Electric Vans to Launch for Cape Town Public Transport
Electric minibus taxis could become a reality in Cape Town, South Africa. The EV startup flxEV is introducing the eKamva, a fully electric minibus, the first of its kind in the country.
Why This Matters: Minibus taxis remain the keystone to South Africa’s public transport. Depending on its success, the venture could become a template for a shift to e-mobility.
Ugandan Company Starts EV Financing
Financing remains the biggest hurdle to vehicle ownership in many African countries. Now, emergent fintech companies are developing solutions to help plug this gap. This is also challenging existing financiers to offer new forms of financial assistance to potential EV buyers.
Why This Matters: While accessing financing is becoming easier, some fintech firms have faced accusations of overly strict terms, leading to buyers losing their vehicles once they fail to make payments. For investors, the opportunity lies in offering financial solutions that will enable more buyers to own vehicles at better rates.
In context
Mobility in many African countries is heavily dependent on second-hand vehicles. Offering more affordable vehicles, whether new or pre-owned, and increasing public awareness could help to speed up the shift to e-mobility. Sudden changes in fuel availability and prices will also affect how the sector evolves across the continent.
The takeaway:
The shift to affordable mobility solutions across many African countries is inevitable, but the speed will be determined by in-country innovations and policies. Geopolitical shifts outside of their control will also spur change. Sustainable solutions will depend on how these countries address direct policy areas, such as electricity generation and reliable infrastructure.
