- Despite having the highest capital finance in Africa for e-mobility start-ups, Kenya lags behind its neighboring countries in terms of electric vehicle adoption with only 350 EVs on its roads.
- Tanzania takes the lead in e-mobility, with at least 5,000 electric vehicles, despite having just 11 e-mobility businesses and a total funding raised of just over $1 million.
- Tanzania’s large market and relatively low level of competition make it attractive to e-mobility companies.
Kenya currently has an estimated 350 electric vehicles on its roads despite the fact that there are about 40 Kenyan e-mobility start-ups that have so far attracted $52 million in capital finance, the highest amount in Africa, as per the African E-Mobility Alliance (AFEMA).
In contrast, Tanzania now has at least 5,000 electric vehicles but just 11 e-mobility businesses, with a total funding raised to date of just over $1 million.
In terms of e-mobility, Rwanda has roughly 900 EVs on the road, while Uganda, which has nine startups that have raised $5 million, is far ahead of Kenya.
Kenya is usually regarded as a continental leader in technology and innovation, particularly in the East African sub-continent, however, the country falls far behind its neighbors in terms of electric mobility, as seen above, while Tanzania clearly takes the lead in this futuristic economic solution. This is partly due to the fact that the EV sector in Kenya is primarily run by the private sector, while the EV sectors in Tanzania, Rwanda, and Uganda, are largely fueled by government intervention.
Fortunately, the Kenyan government has been reaching agreements, making concessions, and offering incentives to speed up the adoption of electric vehicles. The country wants at least 104,000 electric vehicles, or 5% of all vehicles on its roads by 2025 to cut greenhouse gas emissions and boost the effectiveness of road transportation.
Additionally, the AFEMA report notes that Tanzania’s large market and relatively low level of competition make it attractive to e-mobility companies. However, several obstacles are preventing widespread adoption, including high import taxes, unclear government policy, a lack of funding, a shortage of technicians, poor access to the electricity grid, and a lack of consumer education.
According to estimates, 1 in 250 cars worldwide is electric, giving them a market share of about 2.2%.
The International Energy Agency (IEA) reports that while countries work to decarbonize road transport, which is responsible for 16% of global emissions, sales of EVs worldwide more than doubled in 2021 from the previous year to a new record of 6.6 million, up from just 120,000 sold in 2012.
According to a recent Business Insider Africa study, Tanzania is on track to overtake Kenya as East Africa’s second-largest economy. This article highlighted that Tanzania’s desire for more foreign direct investments, a favorable business climate, and intra-continental trade are the drivers behind Tanzania’s quick development.