Why EVs are gaining ground in Africa

2026-02-12 · Source: MIT Technology Review · Field: Transportation & Mobility — Electric & Alternative Fuel Vehicles, Transportation Infrastructure, Public Transportation & Urban Mobility · Depth: Fundamental Awareness, short

Summary

Electric vehicles (EVs) are showing significant progress and optimism across Africa, despite existing challenges like limited charging infrastructure and grid reliability. A recent Nature Energy study projects that EVs, from scooters to minibuses, could be cheaper to own than gasoline vehicles in Africa by 2040. This outlook is supported by developing pro-EV policies, a growing electricity grid, and expanding local manufacturing. Ethiopia, for instance, banned non-electric private vehicle imports in 2024, leveraging its nearly $5 billion Grand Ethiopian Renaissance Dam, which doubled its grid's peak power to five gigawatts in September 2025. Rwanda also banned new registrations for commercial gas-powered motorbikes in Kigali, a major transportation shift given these vehicles constitute over half the city's traffic. Globally, EVs made up 45% of new two- and three-wheeler sales in 2025, compared to 25% for cars and trucks.

Key takeaway

For investors evaluating emerging markets, Africa presents a compelling opportunity for EV-related ventures. Aggressive pro-EV policies in countries like Ethiopia and Rwanda, coupled with significant infrastructure projects like the Grand Ethiopian Renaissance Dam and Gotion High-Tech's $5.6 billion gigafactory, signal a rapidly expanding market. Your investment in local assembly, charging networks, or battery manufacturing could capitalize on this growth, especially in the two- and three-wheeler segments and the influx of affordable Chinese EVs.

Key insights

Africa's EV market is poised for growth due to policy, infrastructure, and local manufacturing advancements.

Principles

• Policy can drive EV adoption.
• Local manufacturing reduces costs.
• Two- and three-wheelers lead EV adoption.

In practice

• Ethiopia banned non-electric private vehicle imports.
• Rwanda restricted gas motorbike registrations.
• Spiro deployed 60,000 electric motorbikes.

Topics

• Africa EV Market
• EV Policy
• EV Manufacturing
• Battery Gigafactories
• Charging Infrastructure

Best for: Investor, Entrepreneur, Business Analyst, Consultant, Tech Journalist

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Editorial summary, takeaway, and curation by AIssential. Original article published by MIT Technology Review.