E-trucks hit African roads

From the newsletter

South African logistics company Bakers SA has partnered with Zimi Charge to develop charging infrastructure for its e-trucks. This comes after the company conducted feasibility tests on e-trucks and found significant cost savings. Bakers now wants Zimi Charge to determine the optimal approach for transitioning its fleet to EVs.

• Bakers SA has tested three electric trucks and currently owns one, but plans to transition its fleet of over 1,000 trucks to electric in phases.

• Zimi has installed its first 120 kW DC charger and incorporated its own locally developed software platform to provide real-time insights into energy consumption, fuel savings, and carbon emissions.

• Over 73,000 trucks were sold in Africa in 2023, with an estimated 78,000 expected to be sold in 2024 and 91,000 in 2030. South Africa is the largest commercial vehicle market in Africa, holding a 53% market share. It has a large used truck market driven by the mining, manufacturing, and agriculture industries. Nigeria, Kenya, and Morocco are expected to be the fastest-growing markets for commercial vehicles in Africa until 2025.

• Interestingly, these same countries are at the forefront of electric truck adoption in Africa. This shift is largely driven by companies in these countries seeking to reduce operational costs in the face of rising fuel prices and embrace sustainable transportation. Industries such as agriculture, mining, manufacturing, and logistics are leading the charge.

• Trucks play a critical role in Africa, transporting up to 90% of freight, particularly in urban areas. As urbanisation accelerates and consumer demand for goods increases, the need for efficient transportation solutions will only intensify. Fortunately, most trucks operate on fixed routes and schedules, making it easier to establish charging infrastructure compared to private cars with their unpredictable travel patterns.

• The potential for applicability is vast. This includes last-mile delivery using light commercial vehicles that don't require en-route charging. Medium-duty trucks distributing dry goods from warehouses to retailers and first-mile delivery of agricultural produce from farm to market. Finally, heavy-duty trucks transporting goods up to 400 km from ports or production sites to distribution centres. While en-route charging is necessary for longer distances, this can be readily accomplished at fixed stops.

• Several African companies are already embracing electric trucks. Shoprite, a South African retailer, introduced electric delivery trucks in 2022. Arma, a Moroccan waste collector, followed suit in 2023. Even Lafarge Africa, a construction supplier, utilises electric trucks for cement transportation and wants to transition to fully electric and hydrogen trucks by 2050. Takealot, South Africa’s leading online retailer, partnered with Aeversa, an EV dealer, and Avis, the leasing firm, to transition to electric trucks for its delivery services.

• In Rwanda, OX Delivers, an electric mobility company, is developing trucks specifically designed for first-mile agricultural produce transportation. The company has already gained over 5,000 customers and this week secured a contract to deliver more e-trucks.

Our take

• The potential for electric trucks in Africa is vast, particularly within the agricultural sector, one of the largest on the continent and the last-mile delivery for light trucks. In Rwanda, OX Delivers has successfully demonstrated the viability of e-trucks for agricultural transportation, a model that can be replicated across numerous African countries.

• However, developing charging infrastructure remains a challenge, especially in remote areas. Off-grid charging solutions offer a sustainable approach to address this issue.  Furthermore, with continuous advancements in battery technology, range anxiety is becoming less of a concern. Increasing battery ranges are mitigating this issue, with the current range reaching over 400 km per charge.