Carbon-free transportation is critical to keeping global warming below two degrees Celsius. And the use of electric vehicles offers a chance for Africa to prosper economically while also reducing local air pollution.

Africa is the region of the world that is urbanising at the quickest rate, which puts pressure on the infrastructure that is already in place, notably in the energy and transportation sectors. This has accelerated the electric vehicle (EV) transition, especially in the nations of East Africa.

Some East African nations are on schedule to completely phase out the usage of fossil fuels. One of the most important technologies for decarbonising the road transportation sector, which is responsible for nearly 15% of world emissions, is the use of electric cars.

Two, three, or even four wheels are standard on consumer automobiles. Owing to their accessibility, affordability, and adaptability, two-wheelers, as well as three-wheelers, are simpler to electrify and, to date, have more momentum in East Africa’s emerging markets.

From the archives How motorbikes can push-start e-mobility

The electric vehicles and EV accessories markets are gaining popularity all across the globe. As per Future Market Insights, the electric vehicle battery market is expected to garner an 8.5% CAGR from 2023 to 2033. But the scenario is not the same in all East African countries.

In terms of EV transition, East Africa is still in its infancy at the moment. For instance, in Kenya and other East African nations, there were over 2 million registered automobiles in use in 2021, compared to a projected 350 EVs. Although these figures are not enormous, they show a considerable increase in the East African transition to use of electric vehicles.

Government support for the widespread adoption of EVs, the implementation of tax breaks, and other incentives are some of the causes of this phenomenon. This would stimulate the e-mobility sector and increase demand for green cars across many East African nations.

This blog will throw some light on how various development partners, governments and private companies are bringing up innovations and regulations to promote the EV transition in East African countries, what kind of developments are taking place in Rwanda and Uganda in terms of EV explosion and how the e-scooter taxi service is gaining traction in various East African countries.

Various governing bodies to build an electric vehicles system in East Africa

Currently, 10% of the total greenhouse gas (GHG) emissions of Africa are attributable to transportation. This percentage is anticipated to rise in step with East Africa’s growing vehicle fleet. Kenya, Uganda, Rwanda, and Ethiopia account for about 70% of East Africa’s yearly vehicle sales and 45% of the region’s population.

The region’s vehicle sales is anticipated to increase from 25 million vehicles at present to approximately 58 million vehicles by 2040, pushed by urbanisation and rising incomes. The difficulty for East Africa will be to promote more environmentally friendly transportation while avoiding the prospect of becoming the world’s largest dump for used ICE cars as its vehicle fleet expands.

In the East African EV sector, private businesses are also creating new opportunities. Roam, a Kenyan-Swedish startup has identified a niche in the electric vehicles market and is providing solutions for the continent’s transportation needs. The Roam offer’s conversion of current cars to electric power is one of its core advantages, and the firm bases its solutions on practicality. Roam has two main commercial tenets. The first, called Roam Air, is an electric motorbike designed specifically for use in the workplace. In East Africa, where 4 to 6% of the population depends on motorbikes for transportation, this is crucial.

Of interest Kenya’s electric bus market set to boom in 2023

Moreover, Roam provides two electric bus versions that may be charged through the grid or a solar power system. Localisation and an ownership structure where the initial expenditure for an electric bus is equal to that of a diesel counterpart keep costs down. The remaining cost is subsequently covered by buyers via operational savings brought on by an EV’s decreased maintenance needs.

Several East African countries have begun to make EV adoption goals and incentives public. One such country is Rwanda, which recently announced tax breaks for EV purchases. Also, a developing start-up environment for EVs is forming in the area, with an emphasis on electric two-wheelers in particular. There were reportedly more than 20 start-ups in this ecosystem by the end of 2021, and they together raised over $25 million in investment that year.

To create cars with a price point and durability appropriate for the local market, a variety of start-ups have already made investments in the region’s budding electric two-wheeler business. For instance, Opibus in Kenya is spending on local R&D and manufacturing to create an electric motorbike designed to meet the demands of boda boda drivers who require high-durability vehicles that can travel up to 130 km per day at a cost equivalent to an ICE two-wheeler. So, it is anticipated that such advancements would herald the adoption of EVs throughout several East African nations.

The EV Transition in Uganda and Rwanda

With programmes for electric automobiles, East Africa is presently resolutely tackling the issue of the oil scarcity. For instance, Rwanda and Uganda are moving more quickly towards electric transportation than their East African counterparts. While Kenya as well as Tanzania are still taking small moves towards using the new technology, Kampala and Kigali have been leading the regional pace since the opening of their respective electric car assembly factories in 2019.

The state-owned facility of Uganda, Kiira Motors Corporation have shown the greatest ambition in the field by producing two battery-powered automobiles as well as a solar-powered bus. The electric bus, designated as the Kayoola Electric Vehicle Series (EVS), was developed utilising internal green mobility technology at Kiira Motors in conjunction with Chinese Equipment Manufacturer, Motor Co. Ltd. When compared to the diesel-powered buses, having a maximum capacity of 65 people, these electric buses have a range of almost 300 kilometers and can accommodate 90 passengers (49 seated and 41 standing).

In Rwanda, Volkswagen began producing electric cars in Kigali in October 2019, and Siemens is going to put in 15 charging points in the country’s capital. This came after Ampersand, a Rwandan company, began selling electric bikes equipped with batteries with a range of around 75 km.

The region’s EV adoption must be scaled up by measures that give incentives to enhance the accessibility of vehicles with zero or low tailpipe emissions, particularly large expenditures in charging infrastructure deployments on roads and in buildings. In 2021, the Finnish company EkoRent unveiled the Nopia Ride in Kenya, an electric taxi. The business has erected five charging stations in particularly three places, including the Hub Karen, Thika Road Mall and Two Rivers Mall. Such prospects in the domain of EVs in these East African countries are expected to open up new avenues from 2023 to 2033.

Of reference Ed’s note: The electric vehicle market is thirsty for charging points

E-mobility Taxi Service in East Africa

Every day, 100 million individuals in East Africa board motorbike taxis to travel to work or do chores. These motorbikes are expensive to operate for the riders, or “motars,” as they generally spend more than $11 per day on fuel and vehicle lease payments while only receiving around $1.60 in pay.

Yet change that is cheaper and cleaner is on the way. In Rwanda, the first African e-motos created by start-up Ampersand can assist cut emissions by creating 75% less lifetime greenhouse gas emissions than petrol motorcycles while using grid power and over 98% fewer when utilising renewable energy sources. Ampersand is on a mission to initiate a mass-market shift to electric transportation in Africa, by building an electric car that costs less to acquire, maintain and run than a gasoline counterpart.

The business also runs battery swap stations where riders can replace their old battery with a precharged one in the same amount of time it takes to fill up with gasoline, in addition to creating and leasing e-motors. With each battery having a range of 60 to 90 km and requiring fewer exchanges than fuel stops, renting a rechargeable battery pack also saves motorists over $500 per year.

Due to this, the firm quickly attracted notice in the nations of East Africa. The Ecosystem Integrity Fund (EIF) granted Ampersand $3.5 million in April 2021, making it the largest e-mobility commitment made by a venture capital fund in East Africa.

Of interest Electric motorcycle battery swapping stations, a sign of the times

To unleash all this potential, collaborations between electric mobility enterprises and participants in the financial industry and also along with the remainder of the ecosystem are essential. In some interesting news for the electric motorbike industry, Ampersand and Bboxx, a super application framework providing access to essential goods and services, have partnered to broaden Ampersand’s e-mobility strategy in Rwanda in 2022.

The financing of the e-motos will be provided by Bboxx using its special asset financing AI model, whereas mobile payments will be handled by Bboxx’s Pulse, a seamlessly integrated operating system that simplifies Bboxx’s business processes. The e-motors as well as battery changes will be provided by Ampersand.

According to Ampersand statistics, the trial is intended to allow cab drivers in the capital to utilise motorbikes for business operations at a cheaper daily cost than fuel cars, a choice that might emerge to be 40% more lucrative. Through their combined efforts, the partners want to eventually see millions of e-motors on East African roads, bringing much-needed sustainable mobility options to the continent’s fast-growing metropolitan areas.

Enlit Africa (the unifying brand for African Utility Week and POWERGEN Africa) invites you to join the conversation 16-18 May 2023 in Cape Town, South Africa.

In conclusion: where are electric vehicles headed in East Africa?

Green tech entrepreneurs are spearheading Africa’s transition to electric transportation from the Cape to Cairo, an important step in the battle against climate change propelled by a global trend towards the usage of electric vehicles. Yet, the continent’s move to electric mobility falls behind that of the US, Europe and China, the worldwide leading candidates in the electric mobility sector. For this reason, East African nations are accelerating their EV transition efforts, particularly for fleets of motorcycles and e-mobility vehicles.

East Africa is reportedly been at the epicenter of Africa’s radical transition to electric transportation, according to the Kenya-based Organisation for Electric Mobility and Development in Africa (AEMDA). Through a recent slew of legislative initiatives, Rwanda has taken the lead in promoting e-mobility. These initiatives include lower power rates for EVs, exemption from import and excise charges, no VAT tax for EV consumables and rent-free property for charging stations.

Have you read? Kenya making great strides to become Africa’s electric vehicle hub

Kenya has also established a target of 5% of recently registered cars being electric by 2025 and has garnered crucial market momentum to expand the deployment of electric mobility. In Kenya, 64% of e-mobility market participants have made investments in the local assembly. Particularly in the two- as well as three-wheeler segments, which would be more inexpensive than four-wheelers, a large demand for EVs is predicted.

Although e-mobility in East Africa has enormous potential, its supporters claim that growth is constrained by several very typical problems, such as low EV demand, a lack of supporting legislative frameworks, exorbitant power costs, and a shortage of trustworthy energy as well as charging infrastructure.

The biggest obstacle to EV technology uptake in East Africa is knowledge since most people believe that EVs are pricey, more difficult to operate, and need extra electricity. The key players are gradually removing these obstacles, and in the next years, tremendous expansion is envisaged in this East African EV market.

About the author Nikhil Kaitwade is Associate Vice President for Market Research at Future Market Insights, ESOMAR-certified market research and consulting firm Future Market Insights (FMI).