EVs Are Becoming A Big Deal In Africa And The Story Goes Farther Than You Think
EVs are becoming a big deal in Africa and the story goes farther than you think
Africa's automobile sector has enormous potential but continues to face a slew of obstacles.
For starters, African countries are the world's largest importers of used automobiles. Due to Africa's excessive reliance on imports, the continent almost feels like a dumping ground for used vehicles.
According to Deloitte Africa Automotive Insights, approximately 80–90% of vehicles imported into Nigeria, Kenya, and Ethiopia are used. Almost a quarter of vehicles imported into Nigeria are over two decades old.
Only Egypt, South Africa, and Sudan have completely prohibited the importation of used automobiles.
To make matters worse, these vehicles are typically equipped with internal combustion engines (ICEs) powered by gasoline or diesel, which contribute to carbon pollution and global warming.
According to a report by the US Department of Energy, one gallon of gasoline produces 9.07 kg of carbon (IV) oxide upon complete combustion. This equates to between 5,400 and 8,000 kilograms of greenhouse gases emitted annually by a typical vehicle.
Likewise, governments' automotive policies have facilitated the importation of these automobiles onto the continent. In Nigeria, for example, a new clause in the country's 2021 Finance Bill proposes lowering import duties on foreign vehicles from 35% to 5%. While lowering import duties on vehicles may reduce the country's transportation costs, such policies further incentivize the import of gasoline-powered vehicles and discourage domestic production.
As a result, there is a compelling case for the manufacturing and adoption of electric vehicles in Africa. However, factors such as restrictive automotive policies, insufficient funding, a lack of charging infrastructure, and apathy toward locally manufactured automobiles all work against Africa's electric vehicle future.
However, JET Motor Company (JMC), a Nigerian auto manufacturing company, is making giant strides toward making this future a reality by developing custom-made electric vehicles with optimal specifications for the Nigerian and African environments.
The company has already raised $9 million from investors including Canada's Africa Development Capital, Greatman Legend, and several Asian investors to expand its research and development efforts and launch its flagship electric vehicle.
JET Motors' EV, Africa's first all-electric vehicle, and the JET Mover, a rugged and affordable minibus, are two of the company's earliest automobiles designed specifically for African terrain.
While the current state of electric vehicle adoption in Africa is less than ideal, encouraging signs have emerged. Cape Verde became the first African country to formally phase out petrol ICE vehicles in 2019. The country's goal, as stated in its national Electric Mobility Policy Charter, is to prohibit the importation of ICE vehicles by 2035; this includes passenger cars, light commercial vehicles, buses, medium and heavy trucks, and two-wheelers.
Moreover, Rwanda's electric mobility startup, Ampersand, recently raised $3.5 million to expand its fleet of electric motorcycles. The e-mobility startup currently employs up to 35 drivers and has a waiting list of 7,000. Riders prefer electric bicycles due to their increased efficiency and lower operating costs.
Also, South Africa opened its first public electric vehicle (EV) charging station in December last year, offering it to the public for free for the first two years.
Surprisingly, EVs are gradually eclipsing the global automobile market, as major manufacturers begin to transition away from internal combustion engines and toward hybrid and fully electric vehicles. Tesla, Faraday Future, Apple, Nikola, Uber, Volkswagen, and Nigeria's JMC are among the companies leading the charge for widespread adoption of electric vehicles. EVs are getting closer to being the more popular option than they were several years ago.
Returning to Africa, there is still a false perception that locally manufactured EVs are inferior to imported counterparts, which is not the case. Perhaps this explains why, in South Africa, the continent's largest EV market; only 1,000 EVs had been purchased by 2019 – out of the country's over 12 million vehicles.
In Conclusion
Nigeria's annual production of locally manufactured vehicles, currently at 14,000, is negligible in comparison to the country's overall vehicle demand of 720,000.
The low demand for locally manufactured vehicles has extended to electric vehicles as well, as evidenced by the meager volumes sold.
Global energy experts have repeatedly stated that electric vehicles are the future of automobiles. According to the Paris climate goals, 22% of global vehicle sales will be electric by 2025, increasing to 35% by 2030.
Within the next two decades, electric cars are expected to be as affordable as gasoline-powered vehicles. According to the International Energy Agency, up to 20 million electric vehicles will be on the road by 2020, increasing to 70 million by 2025.
As a result, it is critical that companies such as JET Motors Company champion the deployment of EVs across Africa in order to propel the automobile industry toward a sustainable energy future.
Course and Certification
Business Analytics Course and Certificate
Business Intelligence Course and Certificate
Management Information System - MIS Course and Certificate
