E-mobility driving Africa’s green transition

E-mobility is emerging as a key player in Africa's green transition, with new tax concessions and government support expected to accelerate the adoption of electric vehicles across the continent. The potential for e-mobility to significantly reduce emissions by up to 50% is a promising prospect that could have a profound impact on both the economy and the environment. CNBC Africa's Aby Agina sat down with Caroline Wanjihia, Regional Director for Ridehailing Operations in Africa and International Markets, to discuss the current landscape of e-mobility and the path forward for sustainable transportation in the region. Caroline highlighted the relatively nascent stage of e-mobility in Africa, with only about 2,000 registered e-vehicles in Kenya, compared to millions globally. However, she expressed optimism about the economic and environmental benefits that e-mobility could bring. The rising costs of fuel and vehicles have driven the need for alternative, cost-effective solutions for drivers, making e-mobility an attractive option. Additionally, the environmental impact of traditional transportation systems has underscored the urgency of transitioning to cleaner modes of transport. One of the key challenges in promoting e-mobility is the lack of infrastructure to support electric vehicles, such as charging stations. Governments play a crucial role in facilitating this transition, and Caroline pointed out that the Kenyan government has taken important steps to support the sector. Through favorable tax policies and subsidies for import duties, the government is incentivizing the adoption of e-vehicles in the local market. Tariff reductions on electricity costs for charging e-motorcycles further encourage the widespread use of electric vehicles. In addition to government partnerships, collaboration with financiers and manufacturers is essential for the growth of e-mobility in Africa. By working with organizations like M-Copper for financing and suppliers like Roam and Ampersand for e-motorcycles, companies like Bolt are able to expand their e-mobility offerings and make them more accessible to drivers. Caroline emphasized the importance of scaling local production to reduce reliance on imported vehicles and safeguard against potential dumping from other markets. Looking ahead, Caroline shared Bolt's ambitious plans to accelerate e-mobility in the region. In Kenya, the company aims to launch 1,000 e-motorcycles in the next year and 5,000 over the next five years. With a vision to have 5% of vehicles on their platform be electric in the coming years, Bolt is committed to driving the transition to sustainable transportation in Africa. As African countries navigate the complexities of transitioning to e-mobility, the support of governments, partnerships with key stakeholders, and a focus on local production will be critical in realizing the full potential of electric vehicles in the region.