Electric vehicles (EVs) are rapidly gaining popularity in urbanizing sub-Saharan Africa, offering a cleaner, more cost-effective alternative to traditional fossil fuels. As the continent becomes a hub for e-mobility innovation, local companies are creating adaptable business models that address transportation gaps, without waiting for infrastructure and grid expansion to catch up. This growing sector has caught the attention of investors, with $62 million raised in 2021 alone for e-mobility projects in Kenya, Rwanda, and Uganda. As the demand for sustainable transportation options increases, the opportunity for growth in Africa’s e-mobility market is substantial.
According to Mordor Intelligence, Africa's electric vehicle (EV) market is projected to grow from $15.80 billion in 2024 to $25.40 billion by 2029. While Africa currently has the lowest EV adoption rate globally, several countries on the continent are making impressive strides in electric vehicle adoption, driven by strong partnerships between governments and the private sector. The following countries are currently leading the way in EV adoption, showcasing robust growth and development in the sector.
- Kenya: Kenya is home to Africa’s largest e-mobility start-up ecosystem, with a growing investment focus on the sector. However, EV registration in the country remains modest, accounting for just 1.7% of new vehicle sales, with 3,753 registered electric vehicles.
- Tanzania: Tanzania has emerged as a significant player in Africa's EV market, with approximately 5,000 EVs in operation as of 2023, according to the Africa E-mobility Alliance.
- Ghana: Ghana has made notable progress, recording 17,000 electric vehicles, including two- and three-wheelers, with around 1,000 of those being four-wheelers, making it one of the largest EV fleets on the continent.
- Rwanda: Rwanda has seen sharp growth in EV adoption, with about 1,182 electric vehicles, including two-, three-, and four-wheelers, up from 900 in 2022.
- Ethiopia: Ethiopia’s EV growth is largely attributed to favorable government policies. Estimates suggest that between 5,000 and 7,000 electric vehicles are currently in operation across the country.
Establishing a competitive, large-scale electric vehicle (EV) manufacturing industry in Africa is a crucial move for advancing the continent's transition to cleaner, more sustainable transportation. Homegrown EV manufacturers can reduce the reliance on imports, foster job creation, and strengthen the local capital base. These jobs tend to be higher-paying and provide opportunities for workers to enter the formal economy. Furthermore, they open entrepreneurial prospects, particularly for women, and contribute to broader economic growth by enhancing transportation accessibility. This, in turn, has the potential to boost mobility, lower costs for consumers, and increase economic integration across African regions.
If your company is involved in electric vehicle (EV) manufacturing or assembly in any of the African countries listed Ethiopia, Kenya, Rwanda, Ghana, and Tanzania, we encourage you to reach out to us. Together, we can explore opportunities to collaborate and drive forward Africa’s transition to cleaner, more sustainable transportation solutions.