While electrification has the potential to transform cities across Africa, governments need to set the tone with clear policies for the sector.
That was the overall message from Africa’s Green Economy participants in Cape Town this week on Navigating the e-mobility transformation in Africa.
Celeste Vogel, CEO and co-founder of eWAKA, Kenya, said e-mobility and smart mobility have emerged as beacons of hope – promising to reduce carbon emissions by up to 30% across Africa.
Many African cities face escalating traffic congestion and air pollution, creating pressing urban challenges for planners and investors.
Vogel said the potential of multiple electric (and other sources of clean energy) transportation — cars, buses, trains and a wide range of other vehicles such as tuk-tuks — can mitigate climate impacts and ease congestion.
Lusanda Madikizela, Head: Zero Emission Freight Transport, C40 Cities, South Africa, said government has a critical role to play when it comes to strategizing or creating a vision to transform the mobility sector.
The electrification sector needs certainty of policy direction
This means policy direction that provides confidence to manufacturers, operators, financiers through stimulus packages and incentives, Madikizela said.
“Manufacturers need policy certainty to be able to adapt … financiers want policy certainty and the right kind of incentives for the industry,” he said.
The government needs to set the tone for the transition to e-mobility to build confidence in e-mobility technology, Madikizela said.
Thabang Mahlangu, Sector Lead: Automotive, Transport, Freight and Logistics at Netbank CIB, said Wednesday was a good day for the electric vehicle (EV) industry in South Africa as the government had, through the Budget Speech, announced incentives for the industry.
Good news for South Africa’s e-mobility sector
Delivering the Address, Finance Minister Enoch Godongwana said the Electric Vehicles White Paper outlines the country’s strategy to transition to a wider production and consumption of new energy vehicles in South Africa, starting with electric vehicles.
“The aim is to transition the automotive industry from the main production of vehicles with internal combustion engines to a dual platform that includes electric vehicles, by 2035,” said Godongwana.
“To encourage the production of electric vehicles in South Africa, the government will introduce an investment allowance for new investment from 1 March 2026.
“This will allow manufacturers to claim 150% of eligible investment costs on electric and hydrogen vehicles in the first year.
“The incentive will be applied in addition to the existing support under the Automotive Production Development Programme.
“The government has also re-prioritised R964 million over the medium term to support the transition to electric vehicles.”
Mahlangu, addressing the issue of disincentives, said the Nordic countries, for example, have the infrastructure to be able to impose bans on ICE vehicles.
The lived reality in emerging markets, including Africa, would likely see a ban on ICE vehicles in just a generation or two, Mahlangu said.
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These markets will continue to see the coexistence of fossil fuel technologies along with a mix of hydrogen and electricity, he said.
Mahlangu emphasized that the energy transition journey is one towards “net zero, not zero”.
Malle Fofana, Head and Regional Director Africa: Global Green Growth Institute (GGGI), said funding continues to be a challenge in the sector.
In Uganda, for example, a lack of charging infrastructure has stalled increased production of e-buses, Fofana pointed out.
It was also easier for East Africa than West Africa to develop the electrification market due to lower import costs.
Geographical location is something to consider, Fofana said.
In terms of policy direction, he said governments should set the map, with the private sector leading the way.
Local financial institutions should also be involved early in the process.
The conversation in Africa about electrification needs to be broader
Gautrain Management Agency CEO Tshepo Kgobe said the discussion should be about new energy vehicles and not just electric vehicles.
His organization changes buses every 10 years and in the recent past acquired complete buses that are pre-engineered to run between hydrogen, electric and diesel technologies.
He stressed that it is important for organizations to pre-plan “your trains and buses to be ready for the transition”.
Kenya has stood out when it comes to rolling out electric buses for its public transport infrastructure, with BasiGo at the forefront of this development.
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Jonathan Green, co-founder and CFO of BasiGo, Kenya, said the company sees the need to liberalize public transport in Sub-Saharan Africa.
“There are about a million diesel buses across Africa. They are unfortunately responsible for high amounts of GHG and emit one gigatonne of CO2 per year.”
These vehicles account for around 40% of all passenger journeys across the continent.
BasiGo, which recently expanded its operations to Rwanda, aims to have 1,000 buses on the region’s roads by the end of 2026. This will reduce up to 50 tons of CO2, Green said.
Cape Town Public Transport Expansion Plan
During his keynote address at the Africa Green Economy Summit on Thursday, Cape Town Mayor Geordin Hill-Lewis said there is a R8.5 billion expansion plan for the metro’s MyCiTi bus system to Khayelitsha and Mitchells Plain.
These buses will be “fully electric” and have their own dedicated lanes.
“All buses will be electronic. We will start having to invest in charging infrastructure. If we are going to develop a R8.5-billion infrastructure … we have to look at the future and how it fits into that.”