Grace Mobility launches in Ghana

From the newsletter

EV firm Grace Mobility Ghana, a subsidiary of Lebanese investment company Grace Investments, has launched in Ghana. The company makes electric passenger and commercial vehicles, 2 and 3-wheelers, scooters, and recreational vehicles. Ghana is Grace Mobility’s first market in Africa and plans further expansion into 3 other markets.  

• Grace Mobility’s brands of electric vehicles include Wuling, Hongqi, Jinpeng, ZNA, Avatr, Neta, Greenman, Rich and RND which it will deploy in Ghana. Besides Ghana, the company, which was founded in 1995, is also targeting to launch in Cote d’Ivoire, Angola, Liberia.

• The company has formed a joint venture with local automaker Auto Parts Ltd for the distribution and maintenance of EVs. Founded in 1941, Auto Parts has been the exclusive distributor of leading brands such as Volkswagen, Porsche and Nissan in Ghana.

More details

• Ghana’s e-mobility market is still nascent. Original equipment manufacturers such as Nissan, Volkswagen, Toyota, and Mahindra, are predominantly assembling and manufacturing ICE vehicles in Ghana.  Hyundai is actively marketing its EV Kona model at dealerships, but it remains price prohibitive for most Ghanaians at more than $55,000 per vehicle.

• The industry is however growing steadily, a trend that is marked by the entry of new players such as Grace Mobility. New models are also being launched, giving Ghanaians a wider choice of EVs to choose from. For instance, local automaker Anointed Engineering Services Limited this week launched the Cireo Nano 3 passenger EV. The car has a range of 200 km on full charge.

• This growth could be attributed to a number of reasons. High gas and diesel costs during Ghana’s particularly acute inflation surge in 2022 increased public consideration of EVs as a fuel-efficient alternative.

• Further, Ghana’s electricity access rate for households is more than 85%, which is one of the highest rates in Africa. This makes home charging a possibility.  Ghana also has excess electricity generation capacity, although this is decreasing over time.  

• Challenges however remain in the West African country’s e-mobility revolution. Grace Mobility Ghana’s CEO, Subhi Accad has for instance raised fears that Ghana’s high taxes will make the firm’s EV pricier and urged its government to provide incentives. Ghana’s electricity prices have also soared in recent years, making charging EVs costlier. 

Our take

• Ghana sorely lacks enough EV charging stations. A recent report by the United Nations Development Programme shows that operating a charging station alone is not yet a profitable venture in Ghana. To grow its EV industry, Ghana should make it easier for investors to build charging stations, which are a critical infrastructure for e-mobility. It should give tax breaks and incentives on charging equipment and related services.

• Inadequate skills are an often-ignored aspect when it comes to EVs. Ghana is one of the countries that has been highlighted to lack enough skilled EV personnel. The country still relies on foreign experts for basic issues regarding EVs such as maintenance. Plugging this skills gap will help Ghana make its e-mobility sector more competitive on the continent.

• Ghana has a high electrification rate of over 86%. Building charging infrastructure won't be a challenge, as long as investors can be convinced. Despite this, the affordability of electricity remains a challenge for most Ghanaians. Addressing the cost of power will make the choice of transitioning to EVs much easier for potential buyers