Africa’s growing electric vehicle market

The electric vehicle market in Africa is experiencing significant growth and development, with countries like South Africa, Rwanda, and Kenya leading the charge in adoption trends. CNBC Africa's Julius Busimongo recently spoke with Michelle DeFriz, Senior Officer at Global Green Growth Institute, to delve into the trends shaping the market over the past year. Despite challenges such as supply chain disruptions and the impact of the pandemic, the uptake of electric vehicles is on the rise across the continent. DeFriz highlighted that the cost parity between electric and ICE vehicles, especially for motorcycles and two-wheelers, is a significant driver of adoption. Companies are also retrofitting vehicles, further boosting the number of electric vehicles on the road. Governments play a crucial role in catalyzing adoption, with countries like Rwanda offering incentives to accelerate the transition to EVs. These incentives range from tax reductions to lower electricity tariffs for charging stations, making EV ownership more attractive. While Africa's growth in the electric vehicle market may not match that of regions like Asia or Europe, rising incomes and innovative business models are paving the way for increased adoption. Companies are exploring ride-hailing services and fleet purchases, providing alternatives to traditional vehicle ownership. Despite the progress, challenges remain, including limited purchasing power and supply chain disruptions. Local manufacturing and the incentivization of EV production could help mitigate these challenges. Infrastructure, particularly charging networks, also plays a crucial role in building consumer confidence outside of capital cities. Companies are considering hybrid models as a transitional step towards full electric vehicles, pending the expansion of charging infrastructure beyond urban centers. As the market continues to evolve, collaboration between governments, businesses, and investors will be essential for driving sustainable growth in Africa's electric vehicle industry.