This week, President Trump announced sweeping “reciprocal” tariffs, including a 104% hike on Chinese imports, aiming to bolster US manufacturing and address trade imbalances. China swiftly retaliated with up to 84% tariffs on American goods, further intensifying the economic standoff. While the main battleground is between the two superpowers, the ramifications will undoubtedly have a global effect, with impacts on Africa’s growing e-mobility sector.
China has been a pivotal stakeholder in Africa’s EV landscape in recent years, supplying affordable EVs including electric buses and motorcycles—to various African nations. In 2023, Chinese new energy vehicle exports to Africa experienced an incredible 291% year-on-year increase, and Chinese-made electric buses are now becoming commonplace in countries such as Ethiopia, Kenya, Rwanda, and South Africa. However, the escalating trade tensions threaten to disrupt this new and fragile supply chain.
Potential Challenges
The implementation of huge tariffs may lead to increased costs for EV imports and components, potentially reducing the affordability and accessibility of these vehicles in African markets. The volatility in global trade relations could also deter investors and delay the establishment of critical infrastructure, such as charging stations, which are essential for the widespread adoption of EVs on the continent.
Emerging Opportunities
From a more positive perspective, these challenges may also present unique opportunities for Africa. Chinese EV manufacturers, facing barriers in many Western markets due to increased tariffs, are increasingly turning their attention to Africa. Companies such as BAIC Group and Geely’s premium EV maker, Zeekr, have recently announced plans to establish assembly plants in Egypt, leveraging its strategic location and favorable trade agreements to reach both African and Middle Eastern markets. Emerging giant BYD has likewise expanded into countries such as Morocco, Kenya, Rwanda, and South Africa, introducing various new models and partnering with local firms to enhance market penetration.
African governments are also proactively creating conducive environments for EV adoption. For instance, Zimbabwe has announced a reduction in the import duty on electric vehicles from 40% to 25%, with the aim to promote clean transportation and reduce carbon emissions.
Additionally, Tanzania is attempting to encourage Chinese EV imports and production, aligning with its drive to transition away from fossil fuel dependency.
Strategic Positioning for Africa
The current dynamic and uncertain global trade situation highlights the importance for African nations to strategically position themselves in the evolving e-mobility landscape. By fostering local assembly and manufacturing capabilities, Africa can reduce dependency on imports, create jobs, and facilitate technological innovation. As the US appears increasingly focused on economic isolationism, collaborations with Chinese firms have the potential to facilitate technology transfer and skill development, which are essential for building a sustainable transport ecosystem.
Moreover, Africa’s rich reserves of critical minerals like lithium and cobalt, essential for battery production, position the continent as a crucial player in the global EV supply chain. By responsibly leveraging these resources, African countries can attract further investments and negotiate favorable trade terms, further bolstering the e-mobility sector.
Taking Advantage of a Changing Situation
The 2025 trade war will undoubtedly introduce new challenges for Africa’s e-mobility and EV sectors, but it can also bring fresh opportunities for growth and self-reliance. By embracing strategic international partnerships, investing in local capabilities, and capitalizing on its resource wealth, Africa can navigate these turbulent times and emerge as a signifi cant player in the global e-mobility revolution.
The SMA 2025 Summit is the ideal platform to connect with African stakeholders, explore investment opportunities, and establish a competitive foothold in the continent’s mobility transition.
With the transport sector poised for significant growth, now is the time for Chinese investors to seize the opportunity and be part of Africa’s mobility transformation.
Join us at SMA 2025 to gain valuable insights into Africa’s transport market, network, and help shape the continent’s future.
Reference List
https://nypost.com/2025/04/09/us-news/be-cool-trump-says-as-massive-reciprocal-tariffs-take-effect/
https://www.businessinsider.com/trump-tariffs-global-response-countries-liberation-day-2025-4
https://autotech.news/chinese-ev-makers-shift-to-africa-amid-us-and-eu-import-restrictions https://www.trendforce.com/news/2024/11/19/news-chinese-ev-makers-shift-to-africa-amid-us-and-eu-import-restrictions/
https://www.channelnewsasia.com/world/electric-vehicles-ev-tanzania-africa-china-import-production-4476266
https://www.electricbee.co/zimbabwe-lowers-import-duty-on-electric-vehicles-to-25-a-boost-for-green-mobility/#:~:text=for%20Green%20Mobility.-,Zimbabwe%20Lowers%20Import%20Duty%20on%20Electric%20Vehicles%20to%2025%25%3A,%2C%20effective%20January%201%2C%202025.
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