Survey pinpoints consumer EV charge costs

November 15, 2024

From the newsletter

The cost of charging electric vehicles varies widely across Africa. We conducted a survey in four major markets and found significant discrepancies between regions as well as providers. The cheapest residential electricity prices are found in Egypt and Nigeria, while the highest are in Kenya and South Africa. 

  • The two oil-producing nations in West and North Africa charge less than a tenth of what consumers pay in the two non-hydrocarbon countries in Southern and East Africa.

  • Prices at commercial charging stations within a country vary relatively little. But the cost of battery swapping is much less consistent. 

More details

  • Nigeria has the lowest residential electricity prices. A kilowatt hour (kWh) costs $0.014. Commercial customers pay $0.022. There is no special EV rate.  

  • Egypt is not far behind Nigeria. A residential kilowatt hour (kWh) costs $0.019. Commercial customers pay $0.028. 

  • Prices in South Africa are a big leap up. A residential kilowatt hour (kWh) costs $0.182, while commercial customers pay $0.087. No special EV rate is available. 

  • Kenya is the most expensive of the four countries. A residential kilowatt hour (kWh) costs $0.252, while commercial customers pay $0.202. But EVs pay only about half of the blended rate ($0.12) at peak times, and a quarter ($0.062) off-peak. However, one still needs to add tax to this, unlike with the rest of the prices. 

  • It may seem that owning an EV in Nigeria and Egypt is more attractive than in the other two countries. But this overlooks the comparative cost of a petrol vehicle. Being oil producers, Nigeria and Egypt also have far lower pump prices. 

  • Diesel and petrol costs per litre in Nigeria and Egypt are between $0.27 and $0.84 this month, while in Kenya and South Africa, litre prices are between $1.15 and $1.38.

  • Charging stations and battery-swapping stations are still in their infancy in all four countries. We went to the most advanced country each for the two powering options.

  • Being a car nation of long-standing, now with a growing fleet of EV four-wheelers, South Africa has a stable market for car charging. The larger charging chains all charge $0.31 for a kWh of AC charging and $0.39 for DC charging. 

  • Kenya is the most developed market for motorcycles and hence has the most mature infrastructure for battery swapping. Battery types vary, and consumers find it harder to compare what is essentially a fee for 3-4 kWh that will take a bike 80-90 km. Prices range from $1.2 to $2.3 per swap.

Our take

  • Creating special electricity rates for EV charging will be key to growth. Only Kenya has explicit rates at the moment to boost electric mobility. Where grids allow it, other governments may be tempted to follow the East African model.

  • Price transparency is vital but missing so far. Few charging stations and battery swap stations make it easy to compare prices. That’s an opportunity for someone to build a consumer product to compare changing and swapping prices within markets. 

  • Broad consumer education including around the cost of owning and driving an EV is needed. All market participants would benefit from this. Makers and suppliers would do well to support consumer education campaigns. Trade associations to the fore.