Zambia champions rural e-mobility

From the newsletter

An electric vehicle company, an energy provider and a battery manufacturer signed a rural partnership in Zambia yesterday. This could be transformational for the sector. The partners launched a pilot project to bring electric two- and three-wheelers and solar-powered charging stations to rural Zambia.

• The partnership brings together three key players: Subilo Energy, a manufacturer of lithium-ion batteries; Engie Energy, a provider of mini-grids and off-grid energy solutions; and Spartan Industries, a supplier of electric vehicles.  

• Together, they will accelerate the deployment of electric two- and three-wheelers powered by solar mini-grids across remote parts of Zambia.

More details

• The project focuses on bringing electric motorcycles and charging infrastructure to areas with limited access to traditional transportation, starting with Chataika village in Zambia's Eastern Province.

• Engie has already installed a 100 kW solar mini-grid, and the first battery charging and swap stations are operational. This is significant because many new mobility startups typically focus on urban areas due to better infrastructure and higher population density. However, as urban markets may become saturated, some companies are expanding to rural areas. In Kenya, Roam recently expanded its operations to a semi-urban area to reach a wider rural market.

• Furthermore, we see electric motorcycle companies partnering with renewable energy companies. This is crucial in Africa, where many grids are unreliable, expensive, and rely heavily on fossil fuels. Ampersand, for instance, partnered with CrossBoundary to provide solar charging solutions for its electric two-wheelers.

• In Zambia, half the population lives in rural areas, with the majority relying on small-scale agriculture for income. Only about 12% of this rural population has access to electricity, but mini-grids are emerging. Electric two- and three-wheelers won't be widely adopted unless electricity reaches these areas, making this partnership a good step towards rural electrification.

• Still, cost remains a barrier. Zambia is trying to attract investors through incentives like 0% customs duty on electric vehicles, motorbikes, and charging systems and 0% duty on imported motorcycles and tricycles for local assembly. Additionally, the Copperbelt region will house an industrial park with an EV battery and critical minerals value chain plant.

• While the number of established EV companies in Zambia is still small, this project may signal that the market could pick up sooner rather than later.

Our take

• EVs in rural areas create consistent electricity demand, something that has been missing. This makes solar mini-grids more financially viable and encourages further investment in rural electrification. It can also lead to improved access to electricity for households and businesses.

• More partnerships with renewable energy companies are needed to replicate this model and scale e-mobility solutions in rural areas.

• This project could signal a broader trend of rural expansion for electric two and three-wheeler companies. A huge share of Africans still live in rural areas and lack appropriate transport systems. Motorcycles have been playing a key role in connecting rural communities to nearby towns. Electric motorcycles are poised to transform this, where electricity is available through either the grid or mini-grids.