Namibia approves EV charging regulations

From the newsletter

Namibia has become the latest country in Africa to approve a regulatory framework governing electric vehicle charging infrastructure, pricing and oversight. It specifies conditions required to install EV charging stations. Namibia joins countries like Kenya, Uganda and Ethiopia that have introduced regulations on the same. 

• Namibia has only one public EV charging station, which was launched last week in its capital Windhoek. The new framework gives clarity to investors on what is needed to install a station, and the public on what it will cost to use it.  

• The Southern Africa country has one of the smallest fleets of EVs in Africa, thanks to its small population of just 3 million people. This means that demand for charging stations remains low.

More details

• The Electricity Control Board of Namibia (ECB) last week announced the approval of a comprehensive regulatory framework governing EV charging infrastructure, initially approved in August 2024.

• The framework specifies conditions required to install charging infrastructure for EVs, and provides for regulatory requirements and also oversight, which involves guiding principles, including recommended standards to be adopted by Namibia for charging infrastructure.

• The introduction of this framework comes at a time when the EV market in Namibia is still small. The country has an estimated 100 EVs on its roads. Electric Vehicles Namibia and e-Car Namibia CC are the leading companies in the segment. The former sells both new and used EVs, mainly the Nissan Leaf.

• Namibia still imports EVs but is slowly making progress towards assembling them locally. E-Car Namibia CC made the first electric four-wheel drive, making it the first commercial EV developed and assembled in Namibia. The company also converts ICEs to EVs.

• An estimated 55% of Namibians live in urban areas, especially in major towns such as Windhoek, Swakopmund, Keetmanshop, Gobabis and Otjiwarongo. This concentration of people in urban areas makes it easier to roll out EVs.

• Namibia is also likely to benefit from its proximity to South Africa, an emerging leader in EVs on the continents. More than 23 EV models will be sold in South Africa in 2025, including BYD’s Dolphin Mini which will cost less than $10,000. Namibia is likely to get cheaper used EVs from South Africa.

• But a major challenge for Namibia is its lack of sufficient renewable energy. Its installed renewable capacity in the country is just over 30% of total generation, with more than 60% of its power generated from oil. This means that its EVs will mainly be powered by dirty fossil fuel-generated electricity. 

Our take

• Namibia is about to experience a boom in renewable energy generation, which will drive down its oil-tied electricity prices. In June 2024, the country received its first-ever energy project finance from the World Bank to build the $138.5 million energy storage project. Such projects will reduce the cost of charging EVs.

• The tourism sector is a major contributor to Namibia's economy. As is happening in leading safari tourism destinations like South Africa, Kenya and Tanzania, the sector can lead Namibia’s e-mobility transition through the use of electric safari vehicles.

• The development of a comprehensive charging network is crucial for the widespread adoption of EVs in Namibia. The policy framework on charging stations is a good starting point, but more should be done to attract private investors in the space.