VW to build e-tractor plant in Nigeria

• Agriculture forms the principal backbone of Africa’s GDP, contributing between 30-40%, according to the World Bank. These statistics suggest a significant opportunity for companies manufacturing heavy-duty EVs and prioritising sustainability.

• VW’s pilot Genfarm Project in Rwanda, which utilises electric tractors (as seen in the picture), provides the company with a competitive advantage in assessing the viability of its strategy in countries where agriculture constitutes over 20% of GDP, such as Ghana, Kenya, Nigeria, and Zimbabwe.

• Our take: Electrification of heavy-duty machinery within Africa’s agricultural sector holds long-term potential, though widespread adoption is contingent upon EVs achieving a substantial market share… Read more (2 min)

Eskom to install EV charging stations

• Eskom, like other power utilities across Africa, is targeting to increase revenue from EV charging-led electricity consumption. This, it hopes, will help offset the stinging loss of customers resorting to own-source electricity generation.  

• Power utilities also view EVs as an opportunity to better manage their grid load. Due to the rise of home charging, electricity demand will increase during the night, a major boost as generation during this period is often curtailed due to reduced power use activities.

• Our take: While it will likely take decades for EV-led consumption to form a significant part of power utilities’ revenues, utilities that start supporting EV adoption earlier will achieve this faster… Read more (2 min)

Morocco joins Zambia, DRC EV battery project 

• Morocco, a leading automotive giant, has expertise in EV battery production. On the other hand, Zambia and the DRC have lithium, copper and cobalt used to make EV batteries. The idea is to combine this to make what would be the region’s first EV battery manufacturing plant.

•  Zambia and the DRC mainly export their minerals in raw form, primarily to China. These raw exports fetch throwaway prices, with China and other importers benefitting from the value addition. The next step for the three prospective partners to find how they can process these minerals locally.

• Our take: Africa needs more of such partnerships for its fledgling EV sector to grow faster where every party brings a different ingredient on the table to make the meal whole… Read more (2 min)

  ____________________/