Energy firm eyes electric three-wheeler and charger assembly

• The company’s business model is notably distinct, focusing on countries that lag behind in e-mobility adoption. Malawi, for instance, has an electrification rate of less than 15%, making off-grid charging solutions a highly suitable approach. Currently, they have contracted over 180 swapping stations.

• Malawi is set to serve as a regional hub for five neighbouring countries, with a planned production capacity of 30 electric three-wheelers monthly. While competition in Malawi is low, the limited production scale raises concerns about whether it can effectively meet regional demand.

• Our take: The long-term viability of EV ventures in countries like Malawi remains uncertain. However, the success of Mobility for Africa in Zimbabwe demonstrates that the VAULTe model has potential… Read more (2 min)

Q&A: Why EVs are an economic lifeline for Ethiopians 

• By turning to EVs, Ethiopia aims to cut its huge import bill, which has exerted significant pressure on its fragile local currency. A weak Ethiopian Birr makes imports more expensive and raises the cost of living in the country where income levels are still low. At the same time, with its cheap electricity, Ethiopians can hugely cut their fuel costs by switching to EVs, leading to big savings. 

• A further ban on local assembly and manufacture of fuel vehicles is a possibility in the future, says Mr Yitayih, a climate change expert who has decades of experience in Ethiopia’s transport industry. To further accelerate the transition to EVs, Ethiopia is also supporting the mass conversion of the existing fuel vehicles to EVs, he adds. 

• To read our conversation, click here. Read more (2 min)

Here is how much lenders charge for an EV loan

• We analysed interest rates charged by six lenders in Kenya – three asset lenders and three banks – and a further three banks in South Africa. In Kenya, we picked asset lenders M-Kopa, Watu Credit and 4G Capital while the banks are NCBA, Family Bank and KCB. In South Africa, we selected WesBank, Absa and Nedbank, all which have EV financing options.

• In Kenya, M-Kopa charged up to 52% annually, while Watu Credit and 4G Capital charged 38% and 11%. Among the banks, Family Bank charged the highest interest of 22% annually, while NCBA and KCB charged 20% and 19% respectively. In South Africa, WesBank, Absa and Nedbank charge between 9% and 14%. 

• Our take: Multilateral financiers like the World Bank can play a pivotal role in accelerating the adoption of EVs by extending concessional financing to local lenders for onward lending… Read more (2 min)