The African continent plays a vital role in supplying raw materials essential for electric vehicles (EVs), but challenges remain in developing downstream capabilities. Africa's EV ambitions were a key topic at the Indaba Mining Conference in Cape Town, where Dave Coffey, CEO of the African Association of Automotive Manufacturing (AAAM), discussed the continent's readiness for EV adoption.
Africa’s EV Market and Key Challenges
The demand for EVs in Africa is currently concentrated in motorcycles and public transport, with East Africa leading the market. The transition to EV passenger cars, however, will take longer due to affordability challenges. The continent is also exploring alternative powertrains such as compressed natural gas (CNG) and green hydrogen, reflecting a diverse approach to sustainable mobility. Drawing parallels with India, Africa is expected to adopt different powertrain solutions at varying speeds.
South Africa currently has the highest demand for EVs on the continent. Looking ahead, Egypt is projected to produce 500,000 vehicles over the next decade, while Algeria’s production could reach 400,000. Morocco, Tunisia, and Ivory Coast also show strong potential for EV adoption. However, to sustain growth, Africa must reduce reliance on imported used vehicles by providing affordable new mobility solutions.
One of the biggest obstacles to Africa's EV transition is the lack of affordable financing. The high cost of new vehicles compared to used imports limits consumer adoption. Additionally, industrial policy implementation remains a challenge, as governments must balance restricting used vehicle imports while ensuring affordability for consumers. Financing is also a barrier for component manufacturers seeking investment, with many struggling to secure capital.
Future Growth and Opportunities
Logistical challenges, particularly limited rail infrastructure, hinder EV adoption in Africa. However, as intra-Africa trade increases from its current 17% to potentially 50%, the demand for commercial vehicles will rise significantly. Improved trade routes and increased shipping volume could alleviate logistics concerns over time. Creating demand drives the value chain and the entire ecosystem, making local manufacturing and investment in sustainable mobility essential for Africa’s economic and environmental future.
Africa has the resources and potential to become a major player in the EV revolution. By fostering local manufacturing and reducing dependence on used imports, Africa can drive demand and build a sustainable EV ecosystem.
