🇺🇸▼
Electric vehicles are becoming more affordable and common around the world. However, significant challenges remain in many places, especially across the diverse nations of Africa. The main obstacles include a lack of reliable electricity and charging stations. EV owners need a steady power source to keep their vehicles running. Despite these hurdles, there are clear signs of progress. Strong economic reasons suggest that electric vehicles will become more practical across the continent. A recent study published in the journal Nature Energy highlights a promising future, projecting that by 2040, the total cost of owning an electric vehicle could be lower than owning a gasoline car. This applies to everything from small scooters to minibuses. The study examines various African contexts where these savings could materialize.
To understand the future of electric vehicles in Africa, one must recognize the diversity of the continent. Africa consists of 54 countries, each with unique economic conditions. Every nation also faces different transportation needs and infrastructure challenges. Some countries have well-developed roads and power grids, while others are just beginning to build these systems. Despite these differences, several positive trends offer hope for the near future. These include new government policies, a gradually expanding electrical grid, and the growth of local manufacturing. Local companies are starting to assemble electric vehicles and their parts within the continent. The economic argument for electric vehicles is becoming stronger, particularly in places where imported gasoline is very expensive or where new sources of clean, low-cost electricity are coming online.
Some African nations are implementing the most forward-thinking electric vehicle policies in the world. Ethiopia has taken a radical step forward. In 2024, it became the first country globally to ban the import of non-electric private vehicles. This policy is more aggressive than regulations in many leading electric vehicle markets. The decision is largely driven by economics. Gasoline is very costly in Ethiopia. Furthermore, the country recently invested in a major new source of domestic power. In September 2025, Ethiopia commissioned Africa's largest hydropower dam. This massive project cost nearly $5 billion and has a capacity of five gigawatts, doubling the country's peak electrical generation. It provides a new foundation of cheap and abundant clean electricity for the nation.
Ethiopia's vehicle market is currently dominated by used cars. Many drivers still choose older gasoline models because they are familiar with them and the initial cost is lower. However, the import ban represents a powerful nudge. Experts expect this policy to significantly expand the electric vehicle market in the country. Other nations are also using policy to steer transportation toward electrification. The previous year, Rwanda banned new registrations for commercial gasoline-powered motorbikes in its capital, Kigali. This policy actively encourages electric alternatives for taxi drivers. Motorcycle taxis make up more than half of the vehicles on Kigali's streets, making this ban a major turning point for urban transportation in the city.
A global bright spot for electrification is in the two- and three-wheeler segment. This sector is highly relevant for African transportation needs. In 2025, electric models made up roughly 45% of new sales for these smaller vehicles worldwide, compared to about 25% for cars and trucks. This trend is beginning to take hold in Africa, supported by a budding local manufacturing and assembly industry. Nelson Nsitem, lead Africa energy transition analyst at BloombergNEF, notes that local assembly of electric two-wheelers is already happening in several countries, including Morocco, Kenya, and Rwanda.
Investment is flowing into this growing sector to support local growth. Spiro, an electric motorbike company based in Dubai, recently secured $100 million in funding. The company plans to use this money to expand its African operations. Spiro currently assembles its bikes in Uganda, Kenya, Nigeria, and Rwanda. As of October, the company has deployed over 60,000 electric motorbikes and operates a network of more than 1,500 battery swap stations. These stations allow riders to quickly exchange a depleted battery for a charged one. This business model addresses the challenge of long charging times and limited home charging infrastructure, making electric vehicles much more practical for daily use.
The assembly and manufacturing of larger electric vehicles and their essential batteries are also poised for growth. A significant milestone is the construction of Africa's first battery gigafactory. The Chinese battery company Gotion High-Tech is building this facility, a project valued at $5.6 billion. Scheduled to begin production in 2026, the factory is projected to manufacture 20 gigawatt-hours of batteries annually. This output is sufficient for hundreds of thousands of electric vehicles each year, representing a major step toward establishing a continental supply chain. Having local factories means parts can be made closer to the market, reducing costs and increasing availability.