In recent years, many African governments have introduced policies and measures to support the development of the electric vehicle industry, and Ethiopia, Tunisia, Zambia, Kenya, Cape Verde and other countries have cancelled or reduced import duties and other related taxes on electric vehicles, and actively promote the growth of electric vehicle production and sales and localized research and development production. The report predicts that the African electric vehicle market will reach $21.4 billion in 2027, and the average annual compound growth rate from 2022 to 2027 is expected to reach 10.2%.

Support measures were rolled out at a faster pace

In February, South Africa's Department of Trade, Industry and Competition released the White Paper on Electric Vehicles (first draft), the first policy statement on the manufacture, sale and use of electric vehicles in South Africa and Africa. The white paper believes that the mass production and popularization of electric vehicles will be a global trend, and South Africa should take advantage of the existing automotive industry base to actively shift to the production of electric vehicles, especially components. The white paper proposes a number of incentives, including expanding investment in electric vehicle manufacturing, developing a regional battery industry chain, promoting the commercialization of green hydrogen production, and ensuring duty-free exports of electric vehicles and their components.

According to the latest target set by the Kenyan government, the proportion of electric vehicles in all registered vehicles in Kenya will increase to 5% by 2025. In February this year, Kenyan electric vehicle startup Roam announced the completion of a $24 million first round of financing, which will mainly invest in the development and mass production of electric vehicles in Kenya.

The Egyptian government has embarked on a plan to mass-produce electric vehicles by 2024, aiming to achieve nearly 100 percent locally sourced components within the next two years. The Egyptian government has also recently introduced measures to invest about $1.5 billion in the expansion of electric vehicle manufacturing plants and charging stations in the country.

The Ethiopian government has included a major development of electric vehicles in its 10-year Development Plan (2021-2030), which aims to introduce at least 152,800 electric vehicles by 2030 to achieve a transition to "green transport".

Ghana has implemented an eight-year duty-free policy for imported electric vehicles starting in 2024. Ghana's Ministry of Finance said the move aims to encourage the manufacture, assembly and use of electric vehicles in Ghana to promote the development of the country's electric vehicle industry. The Algerian government recently introduced a policy to exempt imported electric vehicles from tariffs of up to 80%. According to the Finance Act 2023, import duties on electric vehicles and charging equipment in Tunisia have been reduced to 10% and VAT has been reduced to 7%.

According to McKinsey and the Shell Foundation's previous market analysis of Kenya, Ethiopia, Nigeria, Uganda and Rwanda, the sales of electric vehicles and electric motorcycles in these five countries are expected to be 340,000 to 820,000 units by 2025, and will grow to 3.8 million to 4.9 million units by 2040.

There is huge room for industrial growth

In a report entitled "Electric Vehicles: A win-win for the Economy and the Environment in Developing countries," the World Bank said that wider adoption of electric vehicles in African countries and the wider developing world could help reduce urban traffic congestion, reduce dependence on fossil fuels and promote better public health.