Towards Electric Mobility in East Africa

Electric mobility has gained recognition amongst policymakers in Africa as a key path towards climate-neutral transport and industry across the continent. Indeed, electric mobility presents an opportunity for Africa to advance its industrialisation goals and climate ambitions, by building new industries, creating jobs, reducing greenhouse gas emissions, and improving urban air quality.

Today, the decarbonisation of transport in Africa is mostly focused on the transition to sustainable forms of mobility. Countries have been investing in the improvement of infrastructure, public transport services, and non-motorised transport, as 40–60 percent of Africans walk or use informal public transport. However, the economic benefits of electric mobility are quickly attracting additional investments. Expensive imported fuels together with cheap electricity from renewables have created favourable economic conditions for EV market growth. Local EV assembly plants are already operating in Ethiopia, Ghana, Kenya, Nigeria, and Tanzania. Currently, some 21 African countries are developing or have adopted so called EV Policies to develop the sector. Already one third of the countries on the continent is moving towards electric mobility.

As the phenomenon of the “global car” becomes a thing of the past amidst changes in geopolitics and automotive value chains, African nations have an opportunity to build their own EV industries and supply networks. The conditions are auspicious. For one, investment in the production of internal combustion engine vehicles and supply chains is already low in all African countries (with the exception of Morocco and South Africa). For another, EV drivetrain technology is comparably less complicated, while mineral and renewable resources are abundant. Finally, Africa’s young population is expanding, while the middle class continues to grow.

All in all, Africa has the chance to become a key player in the future global EV industry. Experience in other regions of the world has shown that the automotive industries are built in regional clusters with specialised value chains distributed across countries. At the moment, East Africa is the pioneer for electric mobility in Africa. Nearly 150,000 EVs, mostly motorcycles, are on the roads of Ethiopia, Kenya, Rwanda, Tanzania and Uganda. Ethiopia by far has the largest fleet, representing some 80% of electric vehicles in the region. Ethiopia, Rwanda, and Uganda have already adopted EV policies, while Kenya and Tanzania have draft policies under review. Moreover, four out of these five countries are members of the East Africa Community (EAC), an important organisation for reducing barriers to free trade in parts and components.

This paper provides an overview of EV market trends and policy developments in these five leading East African countries. While assessing the policies in each country, we consider outstanding challenges in the area of EV lifecycles. We also make suggestions for future policies that are robust to ongoing developments in the global EV market. Our assessment is meant to serve as a stimulus for further discussions with policymakers in the rest of Africa as they develop their own sector roadmaps. Governments across the continent would reap considerable benefits by developing future-oriented policy frameworks that promote EV adoption while also considering the entire EV lifecycle. We hope you find this publication both useful and informative – and valuable as a catalyst for further discussion.