African corporate fleets shift to EVs

From the newsletter

Decarbonising African transport will be hard without converting corporate fleets to electric vehicles. EVs are still too expensive for most individuals, and second-hand EVs are only just coming on the market. Corporations, however, have the financial resources and the motivation to act in ways that align with climate goals.

• Egyptian-based startup Shift EV is converting half the delivery fleet of Danone Egypt.

• In South Africa, Shoprite, a leading retailer, and DHL, the logistics firm, are switching their fleets to electric vehicles.

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• In Kenya, the national utility provider Kenya Power has acquired over 30 electric vehicles for its fleet and has installed charging stations at various locations, including its headquarters and some customer service centres. They also offer special tariffs for EV charging that are lower than other tariff categories, and the tariff is halved during off-peak hours to encourage adoption.

• The Kenyan government is also fully advocating for EVs and is setting an example by planning to deploy 1,000 electric vehicles for the police as a start.

• NCBA Bank is also embracing EVs across its regional offices in Kenya and Rwanda. Besides that, it has set aside a loan of about $154 million for EV loans to individuals and businesses and has been involved in developing its own charging infrastructure at its offices for its fleet charging.

• In Uganda, the Civil Aviation Authority (CAA) has acquired two electric vehicles as part of a broader initiative by the Ugandan government to promote sustainable transport. They are also exploring partnerships to expand charging infrastructure at airports and other key locations.

• In Nigeria, Lafarge Africa Plc, a cement and concrete company, is transitioning to electric vehicles and other sustainable practices to reduce its environmental impact. It aims to be fully sustainable by 2050 and has set aside $60 million towards green mobility.

• Ride-hailing companies like Uber and Bolt are actively expanding their EV fleets in Africa. They offer financing options to drivers who switch to electric vehicles and are partnering with EV makers to facilitate this transition. For example, Uber has partnered with BYD to supply 100,000 electric vehicles globally. Uber Green, a service specifically for EV rides, is now operational in some African cities, including Nairobi, Kenya, and Johannesburg, South Africa.

Our take

• Corporations will be the leaders in EV adoption due to their huge financial resources. This financial capacity allows them to not only purchase EVs but also invest in the necessary charging infrastructure to support their fleets. The switch to EVs is so important to them as it aligns with growing corporate social responsibility initiatives. Companies are increasingly recognising the environmental benefits and striving to reduce their carbon footprint.

• However, corporations cannot drive this transition alone. Building a network of EV charging infrastructure requires collaboration between the public and private sectors. Governments need to incentivise the development of charging networks and implement policies that support EV adoption. Partnerships with utility companies are also crucial to ensuring a reliable and sustainable energy supply for charging stations.

• Corporations can play a pivotal role in expanding charging infrastructure. Many companies have ample space to install charging stations on their premises. Offering reduced charging rates to employees can further incentivise EV adoption and contribute to a company's sustainability goals. Investing in charging infrastructure can also be a smart financial move for corporations, as it can be an additional source of revenue.