Africa’s EV value chain to drive the next phase of industrial growth

Africa's potential to lead the global electric vehicle (EV) value chain and accelerate Sustainable Development Goals is a topic of great interest and debate. The continent is rich in resources critical for EV batteries, including cobalt, lithium, graphite, manganese, and rare earths. Yuma Sasaki, Founder of Dodai, sheds light on the continent's EV value chain and the challenges and opportunities it presents. Sasaki emphasizes the importance of developing infrastructure to unleash the full potential of EVs in Africa. Countries like Ethiopia, with a high reliance on clean hydropower for electricity production, offer a conducive environment for EV adoption. However, the lack of charging stations and electricity access in rural areas remains a significant barrier. Sasaki's company is taking proactive steps to address these challenges by building 100 battery swap stations in Addis Ababa, Ethiopia's capital. This initiative aims to make EVs more accessible and convenient for the local population. The disparity in access to electricity highlights the urgent need for collaborative efforts to drive the EV industry's growth in Africa. Sasaki advocates for regional and continental collaboration to leverage each market's strengths and resources. By recognizing and combining the unique capabilities of different African countries, a comprehensive and sustainable solution for the continent's EV industry can be achieved. The African Continental Free Trade Agreement provides a platform for facilitating such collaboration and fostering a thriving EV ecosystem across the continent. Designing effective industrial policies for the EV industry in Africa is crucial for enabling a sustainable and inclusive transition towards electric mobility. Sasaki's insights highlight the transformative potential of the EV industry in Africa and the importance of collective action in realizing this vision.