Global EV Adoption: Africa Reality May Be Quite Different
Global EV adoption: Africa's reality may be quite different
A decade ago, it was unthinkable that Electric Vehicles (EVs) could be a viable alternative to popular gas vehicles. Previously, electric vehicles were primarily used for research and development purposes, and the few that did make their way onto public roads were prohibitively expensive.
However, as a result of technological advancements, evolving policies, and the growing popularity of electric vehicle companies such as Jet Motor Company, EVs are now sharing the road with conventional vehicles. And some regions have already embraced it as the mode of transportation of the future.
According to reports, the global adoption of electric vehicles is accelerating. Since 2015, adoption is estimated to have increased more than sixfold.
Over 11 million electric vehicles, including cars, buses, vans, and trucks, were registered worldwide last year. This figure is expected to rise to 145 million by the decade's end.
In terms of sales, the previous year was similarly historic for EVs. Global sales increased by 41% in 2020, despite a 16% decline in global car sales due to the pandemic.
For the first time, Europe surpassed China as the global electric vehicle market's center. The region saw 3 million electric vehicle sales, with registrations doubling to 1.4 million, while China saw 1.2 million.
Since 2015, China has been the world's largest market. According to the Chinese Ministry of Public Security, the country has nearly five million electric vehicles, accounting for more than half of the global total.
The United States and Africa are still lagging behind in their transition to electric vehicles. While the world's largest economy has begun implementing measures that will facilitate adoption in the near future, Africa has made little progress.
According to the International Energy Agency (IEA), the enormous disparity in adoption between regions is due to the severity of the barriers to EV growth.
Africa's Electric Vehicle Challenges
Electric vehicles are still uncommon in the majority of Africa; the likelihood of encountering one is about one in a million. In South Africa, the continent's largest EV market, only 1,000 of the more than 12 million vehicles on the road is electric.
In the majority of other African countries, even fewer electric vehicles are in use. This is because the most popular type of vehicle is a used car.
According to reports, Africa accounts for approximately 40% of global used vehicle exports. In Nigeria, Kenya, and Ethiopia, the proportion is estimated to be between 80–90 percent of total imported vehicles.
Policies of the Government
This, however, is unlikely to change anytime soon. Unlike in Europe, where government policies are pressuring the automotive industry to embrace more climate-friendly options such as electric vehicles, African governments are more lenient.
Only one African country, Cape Verde, has taken steps to phase out the sale of internal combustion engine vehicles by 2035.
By comparison, approximately 17 countries across Asia, Europe, and America have enacted similar legislation. Additionally, many countries have committed to achieving the SDGs' goal of net-zero greenhouse gas emissions.
Inadequate infrastructure – roads, electricity, and EV charging stations
Second, even with the relatively slow adoption of EVs in Africa, infrastructural challenges such as underdeveloped electricity grids, poor roads, and a lack of public E-chargers persist.
While European grids have been able to accommodate electric mobility, many African countries' electricity systems are already stressed. Frequent blackouts in some countries may act as a deterrent to consumer demand for electric cars, as they cut off consumers' access to transportation.
For example, in Nigeria, the average duration of access to electricity is approximately 12 hours, and the country currently lacks public EV charging stations.
In South Africa, things are a little bit better. In 2020, the country ranks fifth globally in terms of the number of public electric vehicle (EV) chargers per 1,000 electric vehicles. Only Korea, Chile, Mexico, and the Netherlands have a higher density of chargers per electric vehicle.
However, that is only one of the continent's 54 countries.
Inadequate charging infrastructure, as well as a scarcity of suitable electric vehicles in many sectors, such as heavy industry, continues to limit adoption.
Significantly less than the national average cost of living
The cost of EVs has decreased significantly over the years, thanks to advancements in battery technology and significant investment in EV startups.
Despite falling battery costs and the promise of lifetime savings from reduced fuel and maintenance costs, the upfront costs remain out of reach of the average African.
The average cost of a new electric vehicle, according to Cox Automotive, is approximately $55,600. (N23M). This is significantly more than the average annual salary of a Nigerian living in Lagos, which is N2M.
A locally based solution
Despite the numerous obstacles to EV adoption in Africa, a handful of startups and companies across the continent are developing electric vehicles to accelerate adoption.
These companies are bringing the electric-car revolution to Africa's streets with fleets of electric light carriers and motorcycles—vehicles well-suited for the continent are challenging roads.
Through dynamic charging and vehicle-to-grid applications, these EVs could become an asset rather than a threat to grid stability with the help of smart technologies and appropriate regulation.
While many African countries' electricity systems are currently underdeveloped, they are rapidly expanding: power generation capacity is expected to more than double by 2040.
Africa has the world's lowest per capita car ownership rate. Because public transportation via buses, taxis, and motorcycles is more popular than private automobiles, it may be more suited to electrification first.
Additionally, the transition to electrification of transportation will be far easier to manage if it is factored into grid upgrades early on, rather than being a surprise to grid operators and consumers.
ARC Ride, based in Kenya, launched electric two- and three-wheelers for UberEats deliveries in Nairobi. Ampersand, a Rwandan start-up, is introducing an electric motorcycle taxi fleet in Kigali and plans to expand to other East African countries.
In Uganda, Kiira Motors' locally manufactured electric buses have begun transporting passengers in Kampala. Finally, Jet Motor Company has partnered with GIG Logistics in Nigeria to provide its EVs for both transportation and logistics services.
In Summary
While progress is being made, electric vehicles account for less than 1% of the global fleet. Additionally, significant barriers to widespread adoption of EVs remain. According to the report, with even bolder climate policies and emission reduction targets, up to 230 million electric vehicles – or 13% of all road transport – could be on our streets by 2030.
Similarly, SDG scenarios predict that approximately 40% of light vehicles in Africa will be electric by 2050.
With market forces gaining traction, consumer awareness increasing, and the emergence of local electric vehicle companies, this forecast is not implausible.
However, for Africa to become a rapidly growing market for electric transport, governments and investors must support the scaling up and acceleration of these innovations.
