How is Rwanda adopting e-mobility?

Rwanda is making significant strides in adopting e-mobility, particularly in the realm of electric motorcycles. The country has set its sights on reducing carbon emissions and transitioning to a climate-resilient economy by the year 2050. CNBC Africa recently spoke with Josh Whale, Founder and CEO of Ampersand, a company at the forefront of assembling electric motorcycles in Rwanda. Whale shared insights on the progress and challenges facing the country's moto taxi industry as it embraces green mobility. Despite encountering delays due to the COVID-19 pandemic, Whale remains optimistic about the future of e-mobility in Rwanda. The company initially launched with a small fleet of motorcycles in 2019, which has since covered over one million kilometers collectively. The positive reception from both the government and customers has been a driving force behind the growing demand for electric motorcycles. Whale emphasized the importance of offering a superior and cost-effective product that happens to be electric, making the transition seamless for consumers. With 7,000 drivers already on a waiting list, the market readiness for electric motorbikes in Rwanda is evident. Looking ahead, Whale envisions electrifying the entire motor fleet within a five-year timeline by meeting the demand for new motorcycles and allowing petrol bikes to naturally retire. This ambitious plan comes with an estimated investment of approximately 70 billion Rwandan francs, to be sourced from a mix of debt capital, loan guarantees, and equity investment. Despite the substantial funding requirement, Whale remains confident in attracting investors, citing promising discussions with venture capital funds and multilateral institutions like the World Bank and AFDB. The potential long-term effects of embracing e-mobility extend beyond environmental benefits. By reducing reliance on fuel imports, Rwanda stands to bolster its economy and redirect valuable resources towards other sectors. The surplus electricity generated domestically can be harnessed to power electric vehicles, further enhancing energy efficiency and reducing trade deficits. To address the challenges and policy considerations associated with e-mobility adoption, Whale highlighted the need for tailored regulations and incentives. Collaboration with the government has been instrumental in identifying key policy areas that can drive the industry forward. One pressing issue is the current electricity tariff structure, which lacks a specific category for electric vehicles, resulting in higher costs for operators. Proposed revisions to introduce a specialized EV tariff would not only lower operational expenses but also incentivize more widespread adoption of electric motorcycles. As Rwanda navigates the path towards a greener transportation landscape, strategic policy interventions and sustained investment will be crucial in realizing the full potential of e-mobility in the country.