For one, there is a growing trend in regional and national policy shifts aligning with environmental goals, attracting investment. Concurrently, the economic and operational benefi ts are starting to draw funding and interest from investors, financiers, and businesses on the ground.
The EV market in Africa and the Middle East is experiencing significant growth, with projections indicating an increase from $2.8bin 2023 to $7b by 2028, reflecting a CAGR of 20.6% from 2024-2028. The EV charging market, as a key part of the transport ecosystem, is also expected to follow a similar upward trajectory.
Regional and National E-Mobility Policy Frameworks
Regional and national policy frameworks began having been slowly taking shape over the past 10 years or so, with some more radical shifts in national policies throughout 2024. International agreements, such as the Paris Agreement (COP21) and the UN’s Global Electric Mobility Programme, drive Africa’s transition by funding EV charging projects and supporting policy development. Additionally, the African Union (AU) promotes sustainable transport under its Agenda 2063, while blocs like ECOWAS and EAC are starting to develop regional EV strategies. The African Continental Free Trade Area (AfCFTA) aims to harmonise EV regulations and cross-border investment.
At the national level, several positive policy developments are emerging. Kenya offers tax incentives for EV imports and mandates that 5% of all parking spaces in new buildings include EV chargers. Countries like Rwanda and Nigeria are also making progress, while Ethiopia has implemented a complete ban on fossil fuel vehicle imports to accelerate EV adoption. While progress varies, stronger alignment between these policy levels is crucial for scaling EV infrastructure across the continent.
Foreign Investment and Other Financing Initiatives
Foreign direct investment (FDI) is a key driver of e-mobility in Africa. South Africa, for instance, is courting investment from China in its $27b automotive industry, following the government’s announcement of substantial tax breaks for EV manufacturing. Other external funding initiatives are also accelerating EV infrastructure development in Africa, including the World Bank’s $300m investment in renewable energy, as well as the EU’s €150 billion Global Gateway initiative and the G7’s $600 billion PGII which are both fi nancing sustainable infrastructure.
In an example of domestic investment, Kenya Power (national utility) is investing $1.93m over three years to accelerate EV adoption, including a commitment to installing charging stations nationwide. The company aims to use these stations for both charging and data collection to support the growing e-mobility sector. This development aligns with Kenya’s 2023 EV charging framework, promoting reliable and affordable infrastructure.
Strategic investment partnerships are also growing – for instance, African Dawn Investments has partnered with Singapore-based WaterCloud International and Chinese OEM Beny New Energy to deploy EV chargers and battery energy storage systems across South Africa.
The E-Mobility Startups Driving Innovation
Homegrown startups like Roam Electric, Jet Motor Company, and Ampersand are crucial to Africa’s e-mobility transformation. These companies are addressing local challenges and market needs, driving EV adoption while creating jobs and fostering innovation. Roam Electric and Ampersand focus on electric motorcycles for the informal sector, while Jet Motor Company offers affordable electric cars tailored to African consumers. Other companies, such as Kabisa in Rwanda and EV Chaja in Kenya, are also starting to install and operate their own EV charging infrastructure. These startups are just as important as large-scale foreign investments and require nurturing and practical, sustainable fundraising to thrive and scale, ensuring sustainable growth in Africa’s e-mobility ecosystem.
A Positive Outlook Despite Geopolitically-Driven Market Uncertainty
Continued strategic investment in EV charging infrastructure will be pivotal for the continent’s sustainable transportation future. With steady market growth forecast, collaboration among governments, fi nanciers, and startups is essential to overcoming existing challenges and fully realising the benefi ts of e-mobility, ensuring that charging infrastructure keeps up with EV adoption.
Reference List
https://www.globenewswire.com/news-release/2024/08/21/2933360/28124/en/Africa-Middle-East-Electric-Vehicle-and-Charging-Report-2024-Electric-Vehicle-Adoption-is-Forecast-to-Record-a-CAGR-of-20-6-During-2024-2028-to-Reach-7-Billion-in-2028.html
https://www.dabafinance.com/en/news/south-africa-courts-chinese-ev-investment-in-27b-automotive-industry
https://english.news.cn/africa/20240423/be79a500585447678dff88cde011d642/c.html
https://theconversation.com/electric-vehicles-in-africa-whats-needed-to-grow-the-sector-236818
https://www.techinafrica.com/nigeria-leads-african-electric-vehicle-adoption-with-infrastructure-investment/
https://www.esi-africa.com/news/kenya-ev-charging-spaces-mandated-energy-utility-invests-in-stations/
https://african.business/2024/10/energy-resources/can-china-go-green-in-africa
https://www.businessdailyafrica.com/bd/corporate/boss-talk/kenya-power-s-investment-in-charging-hubs-to-spur-e-mobility-4719578
https://www.engineeringnews.co.za/article/african-dawn-investments-forms-partnership-to-roll-out-ev-chargers-besss-across-south-africa-2025-01-31
https://insightplus.bakermckenzie.com/bm/projects/africa-the-continents-sparkling-clean-energy-future
https://www.theafricareport.com/375251/basigo-solartaxi-spiro-the-african-startups-driving-the-electric-vehicle-revolution/
Contact Us
VUKA is the trusted media partner to key professionals, policy makers, suppliers and
manufacturers. We provide unparalleled opportunities for industry-wide connection.