Burkina Faso unveils first locally-made EV

From the newsletter

Burkina Faso has unveiled its first locally-made electric vehicle along with a public EV charging station. The car, which is fully electric, has a 30-minute charging time and a range of 330 km (205 miles). It was made by Burkinabe automaker ITAOUA Motors SA, which is targeting to increase production of the car. 

• The production plant of the car is located in Ouaga 2000, one of the prime districts in the West African country of more than 23 million people. The car was made primarily using local resources and by Burkinabe engineers who were in charge of both design and manufacturing, according to reports.

• Burkina Faso’s vehicle market remains small. Less than 1,000 vehicles are sold in the country annually. Statistics about the proportion of EVs in the country’s annual vehicle sales are currently unavailable, but the number is likely tiny.

More details

• Burkina Faso, which has a GDP of just over $20 billion, is the latest in a growing list of African countries that are making EVs. The list includes more mature EV markets such as South Africa, Morocco, Kenya, Egypt, and Nigeria. 

• Even as automakers on the continent roll out electric cars, electric motorcycles remain the most produced EVs in Africa. They are cheaper to build than electric cars and have higher demand on the continent. 

• Burkina Faso’s motor vehicles market is still tiny compared to other African countries but is growing steadily. Its vehicle registration figures are projected to reach more than 1,000 units in 2028 from just over 500 units currently. However, the motorcycle market in Burkina Faso is much bigger.

• The demand for motorcycles in Burkina Faso is surging due to their affordability and ability to navigate the country's rugged terrain. Unit sales are expected to hit 28,300 in 2029 from 27,000 in 2024.

• The overall EV market in West Africa is still in its early stages, but it shows great potential for growth. As more countries in the region embrace electric vehicles, the market is expected to expand rapidly. The declining costs of electric vehicles and the increasing availability of charging infrastructure are key factors driving this growth.

• While Burkina Faso is making strides in the electric vehicle market, other West African countries are also making significant progress. For instance, Nigeria, Africa's largest economy, has been investing heavily in EV infrastructure. In Ghana, its government has introduced incentives for EV buyers, including tax breaks and subsidies, to encourage the adoption of electric vehicles.

• Like other African countries that have started making EVs locally, Burkina Faso will face major challenges. It will have to compete with larger companies, mainly foreign, which can sell EVs to the country at a much lower cost. The local market is also still small, limiting the entry of more EV investors. 

Our take

• High unemployment in most African countries has left millions of youth resorting to motorcycle riding to make a living. The sale of electric motorcycles is rapidly growing across the continent. For Burkina Faso to make a bigger impact in the continent’s EV market, it should embrace local manufacture of electric motorcycles.

• Making EVs is no mean feat. It is a business that is dominated by global automakers such as BYD and Tesla. African countries such Burkina Faso which have ambitions of being EV manufacturers can borrow major lessons. They need to have a skilled workforce, stable political environment, robust fiscal policies and a ready market to succeed.

• Making EVs alone is not enough. To create a robust EV market, Burkina Faso must invest in putting the necessary infrastructure in place. The cost of EVs is declining, and therefore adoption is rising. But adequate electricity is needed to support the adoption. The country should also facilitate investment in charging infrastructure across the country.