The global electric vehicle (EV) industry, long viewed as a vital tool in combating climate change, is now facing significant challenges.
Automakers like GM, Mercedes-Benz, and Volvo are scaling back their ambitious EV strategies in response to slow sales, saturated markets, and high production costs.
In Africa, the adoption of EVs remains minimal, with infrastructure gaps and affordability issues creating further roadblocks.
Yet, despite these challenges, companies like Renault are trying to change the narrative in Kenya, offering EV models to a market with growing interest but limited uptake.
Globally, the EV market is facing a pivotal moment. In the United States, GM’s decision to abandon its EV mandate reflects the changing priorities of automakers. This shift follows regulatory rollbacks under former President Trump, which reduced incentives for automakers to push electrification.
Similarly, in China, the world’s largest EV market, manufacturers are contending with an oversupply of vehicles, leading to intense competition and diminishing profits. Audi, for example, is selling EVs in China without its iconic four-ring logo in an attempt to appeal to a broader demographic.
Europe, often considered the leader in EV adoption, is also experiencing slowing growth. Rising inflation, labour costs, and supply chain disruptions have tempered demand, forcing automakers to reassess their strategies. While governments remain committed to reducing emissions, sustaining the current pace of EV adoption will require more robust incentives and innovations.
In Africa, EV adoption is still in its infancy. South Africa, the continent’s largest automotive market, recorded just 2,795 EVs in 2023, representing a penetration rate of only 0.02 percent. Similar trends are observed across the continent, where affordability, infrastructure, and policy gaps continue to hinder progress.
In Kenya, Renault has made notable efforts to introduce EV models, positioning itself as a pioneer in the market. While the company’s initiatives signal optimism, widespread adoption remains constrained by limited charging infrastructure and the high cost of vehicles.
Renault’s EVs in Kenya primarily target corporate fleets and environmentally conscious consumers, but the lack of incentives and government support has slowed down uptake.
Kenya has, however, taken steps to encourage EV adoption by reducing import duties on EVs and supporting renewable energy projects.
The focus on solar energy for charging infrastructure offers a sustainable pathway to addressing some of the logistical challenges
Infrastructure and affordability
Across the continent, the lack of accessible and affordable charging networks is a major obstacle.
South Africa, for instance, has only 450 charging stations, which pales in comparison to the thousands required for broader EV adoption. For countries like Kenya and Nigeria, charging stations remain concentrated in urban areas, limiting their utility for rural consumers.
Affordability is another pressing issue. EVs often cost upwards of $50,000, far exceeding the average consumer’s budget. Governments in Africa rely heavily on fuel taxes for revenue, which reduces the financial incentive to promote EV adoption. Even when subsidies are available, they often fail to address the underlying issues of affordability and infrastructure development.
The slow rollout of EVs in Africa has far-reaching consequences. From an environmental perspective, delays in adoption undermine global climate goals, particularly those outlined in the Paris Agreement and the United Nations’ Sustainable Development Goals (SDGs).
EVs are central to achieving SDG 13 (Climate Action), yet Africa’s limited adoption rates could hinder global progress.
Economically, the lack of economies of scale keeps EV prices high. Battery technology, which accounts for a significant portion of EV costs, requires mass production to become affordable. The slow adoption in Africa and other emerging markets reduces the potential for automakers to lower costs, creating a cycle of inaccessibility
Opportunities for growth
Despite these challenges, there are pathways to accelerate Africa’s transition to electric mobility.
Policy innovations: Governments must introduce tax exemptions, subsidies, and reduced import duties to lower the cost of EVs. Kenya’s tax incentives for EV imports are a step in the right direction and could serve as a model for other countries.
Infrastructure investment: Developing charging networks, particularly those powered by solar energy, can address Africa’s unique challenges. Public-private partnerships will be essential in funding and scaling these projects.
Localised Solutions: Automakers can tailor their offerings to meet African consumers’ needs. Compact EVs and electric motorbikes, which are more affordable and practical, could drive adoption in urban and peri-urban areas. The partnership between BYD and Rwanda’s Ampersand to produce 40,000 electric motorbikes by 2026 exemplifies this approach.
Educating consumers about the long-term savings and environmental benefits of EVs can help shift perceptions and increase demand. Africa’s role in the global EV market is still evolving, but the growth potential is immense.
While the challenges are significant, they are not insurmountable. Governments, automakers, and international organizations must collaborate to create a conducive environment for EV adoption.
By investing in infrastructure, developing affordable models, and introducing supportive policies, Africa can become a key player in the global transition to sustainable mobility.
Renault’s initiatives in Kenya, alongside efforts by other manufacturers and governments, offer hope for a brighter, more sustainable future. However, the success of these ventures depends on a collective commitment to addressing the unique challenges of the African market. The question remains: will Africa seize this opportunity, or will it remain on the sidelines of the global EV revolution?
The writer is the Project Manager at Valorem Consulting Ltd. Email: [email protected]
