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Electric mobility in Africa : Booming market

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Electric mobility in Africa : Booming market

Africa holds at least 20 % of the world’s reserves of metals critical to the energy transition, including around 19 % of those needed for electric vehicles. The African market for electric vehicles could grow to 21.39 billion USD by 2027, while the motorcycle market is projected to reach 5.07 billion USD by the same year.

Global ecological transition : Africa has a card to play

Electric mobility is gaining momentum in Africa due to the climate crisis, which is intensifying the need to decarbonize transport systems. African countries are actively seeking electric mobility solutions and striving for low-carbon economies. The continent’s wealth of essential minerals for the global ecological transition provides a significant advantage.

According to UNCTAD’s 2023 report on economic development in Africa, demand for these metals will rise as global pressure for cleaner energy intensifies. An electric car, for instance, requires about six times more minerals than a conventional vehicle. The report also highlights that Africa holds at least 20 % of the world’s reserves of metals essential to the energy transition, including around 19 % of those needed for electric cars.

Ideally positioned for electric mobility by 2035

Growing investment in renewable energy is fueling increased demand for electric vehicles (EVs) and electric motorcycles. Several of Africa’s trading partners have set 2035 as the deadline for banning the sale of internal combustion engine vehicles. In response to this growing demand, startups specializing in electric mobility have emerged across the continent. These include

  • Ampersand Electric Motorcycles in Rwanda
  • Shift EV in Egypt
  • BasiGo and Opibus in Kenya
  • eWAKA Mobility Limited and Zembo in Uganda
  • Mobility for Africa in Zimbabwe
  • Forever powered in South Africa

The state of the electric mobility market in Africa

A transport revolution is underway in Africa, with governments, private institutions, entrepreneurs, and innovators exploring sustainable mobility options. Despite the current low penetration of electric vehicles, the trend is rapidly changing.

According to Mordor Intelligence, a few manufacturers dominate the African electric car market, including Volkswagen AG, BMW AG, and Stellantis NV. As demand for electric vehicles in the region grows, companies are forming alliances and acquiring major competitors in the sector. African countries such as Egypt, South Africa, and Rwanda have already launched sustainable vehicle pilot projects.

Egypt leads Africa’s transport transition. In June 2023, the country’s Supreme Vehicle Manufacturing Council approved initiatives from two national electric mobility companies, aiming to convert over 100,000 internal combustion vehicles to electric within the next five years.

Nigeria is also at the forefront of the electric mobility transition. Metro Africa Xpress Inc, a Nigerian electric mobility platform, raised 31 million USD to develop the assembly of electric two- and three-wheelers. South Africa, which launched a green transport plan in 2018 to decarbonize its transport industry, is another key player in the electric mobility sector.

Why should Africa decarbonize its transport?

Africa is already feeling the severe impacts of the climate crisis, as evidenced by the increasing frequency of natural disasters. This year alone, climate-related disasters have struck numerous countries. In early 2023, floods affected South Africa, Rwanda, Angola, Cameroon, Ethiopia, Uganda, and the DRC.

Tropical cyclone Freddy, which hit Mozambique and Malawi in February and March, became the third deadliest tropical cyclone ever recorded in the southern hemisphere. Additionally, forest fires, landslides, and a plague of locusts ravaged several East African countries in 2020. The urgency to mitigate the climate crisis is particularly pressing in Africa.

Air pollution from transport

Reducing air pollution could save 200,000 lives annually in Africa by 2030 and 880,000 lives per year by 2063, according to a report by the Climate and Clean Air Coalition (CCAC), the United Nations Environment Programme (UNEP), and the African Union Commission. The report also states that Africa could cut carbon emissions by 55 %, methane by 74 %, and nitrous oxide by 40 % by 2063.

Pollution is the greatest environmental threat to human health, causing around 7 million deaths worldwide each year. Given Africa’s vulnerability to climate change, preventing emissions of short-lived climate pollutants like methane and black carbon will save lives and protect the environment. Measures such as adopting cleaner vehicles and promoting safe, affordable public transport are crucial in this effort.

Electric mobility : Africa’s advantage

Endowed with rare earths essential for electric vehicles, such as cobalt, bauxite, and lithium, Africa has the potential to achieve net zero emissions by 2050. The continent’s abundant renewable energy resources, short daily travel distances, and young workforce further bolster its electrification potential.

According to the United States Geological Survey (USGS), Africa holds significant portions of global mineral reserves: 52.4 % of cobalt, 46 % of manganese, 24.7 % of bauxite for aluminum production, 21.2 % of graphite, and 16 % of vanadium. Notably, about 70 % of the world’s cobalt supply comes from the Democratic Republic of Congo.

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