December 13, 2024

Zambia waives taxes on electric vehicles, exempting imports from all duties except VAT and waiving VAT for local EV production.

Yesterday, Zambia announced it is waiving all import taxes except VAT & is doing away with VAT for local EV manufacturing. It joins Zimbabwe, which last week reduced its EV import taxes. Zambia in the last month attracted several deals in its mineral sector by partnering with Morocco & DR Congo to establish an EV value chain.

  • The government plans to lead by example and has pledged to transition at least 50% of its fleet to electric vehicles.

  • Zambia is richly endowed with critical minerals—copper, lithium, cobalt, manganese, and nickel—essential for EV battery production, and a plan is underway to partner with DR Congo to establish an EV battery plant.

  • Our take: Waiving import taxes could lower EV prices but hinder the development of local manufacturing... Read more (2 min)

Dongfeng, a Chinese automaker, has launched in South Africa with an initial line-up of three models, two being fully electric. The first to arrive will be the Dongfeng Box, a small electric hatchback aimed at competitors like the BYD Dolphin. The Box will go on sale in the first half of 2025, with pricing to be announced next year.

  • The Dongfeng Box can reach a top speed of 140 km/h and travel 430 km on a single charge. It supports DC fast charging, reaching up to 80% charge in 30 minutes, with a reported 200 km of range available after just 8 minutes of charging.

  • Dongfeng already has a presence in South Africa in the heavy truck segment, and the entry of the Box marks its expansion into the passenger vehicle space. The vehicle will be distributed locally by a South African firm called E Auto Motor.

  • Our take: Chinese EV makers' strategy of lowering prices could disrupt the market for local EVs… Read more (2 min)

It costs 17 times more to power a fuel vehicle in Nigeria compared to an EV. In South Africa, it costs 13 times more, while in Kenya, it is 7 times more. This ratio is calculated by comparing the cost of petrol per litre with the cost of charging per kWh. Nigeria has the cheapest electricity tariffs compared to Kenya & South Africa.

  • Nigeria’s residential electricity costs are 87% cheaper than Kenya’s and 15% cheaper than South Africa’s. On the other hand, commercial electricity costs are 80% and 54% cheaper compared to Kenya and South Africa, respectively.

  • As a major fossil fuel producer, Nigeria also enjoys lower petrol prices. Petrol in Nigeria is 48% cheaper than in Kenya and 30% cheaper than in South Africa.

  • Our take: Off-grid solutions can address Africa’s charging cost challenges... Read more (2 min)

Media monitoring

  • Kenya’s BRT receives funding: Nairobi has secured $335 million in financing from the European Investment Bank, the French Development Agency, and the European Union to fund the Clean Core Bus Rapid Transit (BRT) Line 3 project. The initiative aims to ease traffic congestion and promote eco-friendly urban mobility. Featuring electric buses at its core, the project aligns with Nairobi's goals to reduce greenhouse gas emissions and improve urban living conditions. The first phase, which includes a 12-kilometre lane, is set to begin in early 2025. (The Star)

  • E-motorcycles to lead EV adoption: Across Africa, electric mobility is gaining traction, particularly in the two-wheeler sector, with McKinsey predicting that 50%–70% of commercial two-wheeler sales in sub-Saharan Africa will be electric by 2040. Countries such as Kenya, Uganda, and Rwanda are leading in e-bike adoption, while Ethiopia and Egypt have the largest e-bus fleets, with 229 and 200 units, respectively, as of mid-2024. (Engineering News)

  • Battery OEMs to boost EV industry: The rising demand for lithium batteries, projected to reach 7.8 TWh globally by 2035, combined with Africa’s abundant battery materials, positions the region as a significant player in the global battery and EV market. South Africa has overtaken Morocco in gigafactory development with the launch of Solar MD’s 3 GWh facility and Balancell’s 1.7 GWh plant, showcasing its leadership in clean energy storage and manufacturing. While declining battery costs are facilitating renewable energy installations and EV adoption, challenges remain, including the need to scale up production and secure investments to meet Africa’s growing storage and electrification needs. (News Central, IOL)

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Cyclists ride Green Rider’s electric bicycles in South Africa

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Events

👩🏻‍💻 Ebikes Africa hosts a networking event on AI delivery service (Dec 16)

🗓️ Nigeria hosts automotive industry stakeholders conference (Dec 16)

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Jobs

👷🏻‍♂️ ShiftEV seeks a senior production engineer (Egypt)

👨🏻‍💼 Kofa seeks a country manager (Kenya)

🙎🏻‍♀️ MAX seeks procurement officer (Cameroon)

👩🏻‍💼 MAX seeks a HSE officer (Cameroon)

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Various 

📑 Kenya E-Mobility Battery Initiative launched their new report today

📝 AYSEM calls for application for their e-mobility mentorship program

👨🏻‍⚖️ Watu welcomes the Buy Now Pay Later regulation in Kenya

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Seen on LinkedIn 

Adetayo Bamiduro, CEO of MAX, highlights that the Nigerian government needs to incentivize local EV manufacturers and repurpose the energy infrastructure.

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