Power Access Hindering E-Mobility in Africa, Says IEA

30 April 2024

The electrification of transport is a core aim in most net zero energy transition agendas, but the International Energy Agency (IEA) has warned that the adoption of electric vehicles (EVs) in Sub-Saharan Africa will be hindered by a lack of access to electricity and grid reliability issues.

The IEA writes in its Global EV Outlook 2024 report published in April, “Each year, more and more countries around the world are setting out a clear vision or targets for electromobility. However, in emerging and developing economies in particular, adoption of EVs can be hindered by limited funding available for fiscal incentives and other measures to overcome purchase price hurdles. Importantly, there are still some 750 million people without access to electricity, mainly in Sub-Saharan Africa, and others with grid reliability issues, which also affects the prospects for charging EVs.”

The report notes that electric cars are still rare throughout Africa, Eurasia and the Middle East, accounting for less than 1% of total car sales.

Instead, Africa is the leading destination for second-hand cars, importing 40% of all used vehicles exported worldwide. The median age of these imports in some African countries is over 15 years.

South Africa, which has largely banned used car imports, is the leading market for EVs on the continent, and has prioritised the installation of fast public chargers.

Electric car sales

Electric car sales in selected countries and regions, 2015-23

BEV=battery energy vehicle PHEV=plug-in hybrid electric vehicle Source: IEA

The report states that electrifying two and three-wheeler vehicles is a promising lever for decarbonising mobility and improving urban air quality in Africa and it notes that there has been increased investment in battery-swapping infrastructure of late.

Last year, electric motorbike leasing start-up Spiro secured US$63 million to expand its fleet in Benin and Togo by nearly 16,000 and to fund more than 1,000 battery swap stations. The firm, which is also present in Kenya, Uganda, Rwanda and Nigeria, is building manufacturing and assembly plants in Africa to locally produce e-bikes and batteries.

Rwanda-based Ampersand also raised US$19.5 million in equity funding late last year to scale up its electric motorcycle battery production and swap station network and to accelerate product development.

The other major opportunity for decarbonising mobility highlighted by the IEA is electrifying public transport. It writes, “City buses, in particular, have strong potential for electrification thanks to their relatively fixed driving patterns and lower daily travel distances.”

It adds that early policy support and infrastructure development are important to drive the electrification of public transport and the establishment of high-capacity efficient services. It singles out the new all-electric bus rapid transit (BRT) system in Dakar, Senegal as a strong example.

The 18.3km fully segregated BRT network began operating earlier this year. Its total investment cost, including the fleet of 144 buses, has been estimated at US$614 million. The BRT is being operated under a public-private partnership by Dakar Mobilite, a consortium of French companies.

BRT systems are planned or under construction for several other cities across Sub-Saharan Africa including Dar es Salaam in Tanzania, Kampala in Uganda, Maputo in Mozambique, Nairobi in Kenya, Abidjan in Cote d’Ivoire and Yaounde and Douala in Cameroon.

ConstructAfrica recently reported that the feasibility study for Maputo’s planned BRT system is due to be completed in May or June. Netherlands-based Royal HaskoningDHV began working on the study in July 2023. The BRT system will comprise a 22km segregated route and an international tender will be launched upon completion of the study.

According to the IEA, Africa’s largest electric bus company BasiGo’s orderbook represented almost 2% of electric bus sales outside China in 2023. The firm aims to sell 1,000 electric buses in Kenya over the next three years. This month, it launched an electric bus assembly line at the Kenya Vehicle Manufacturers Plant in Thika. As of April 2024, BasiGo had orders for more than 500 buses for Nairobi and 100 for Kigali in Rwanda.

In 2023, global sales of electric cars totalled nearly 14 million, representing 18% of all cars sold, compared with 14% in 2022. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase.

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