Africa Embraces Electric Vehicles and Supportive Policies

Several African nations are implementing comprehensive electric vehicle (EV) policies, moving beyond initial pilot projects. These policies aim to accelerate EV adoption and position the continent as a participant in the global EV economy, increasingly viewed as an industrial, fiscal, and infrastructure priority.

South Africa’s Investment Incentives

South Africa will introduce a 150% tax deduction for qualifying capital investments in electric vehicle and hydrogen production, effective March 1, 2026. This incentive, projected to cost US$26.3 million (R500 million) in the 2026/27 fiscal year, is part of the country’s 2023 Electric Vehicle White Paper, which outlines a roadmap to transition the automotive sector to a dual production platform by 2035. The government has committed US$50.8 million (R964 million) over three years to support this transition. BMW Group South Africa began producing the fourth-generation BMW X3, including a plug-in hybrid model, at its Rosslyn plant in October 2024, following a US$221.1 million (R4.2 billion) investment.

Global EV Market Trends

Global battery-electric vehicle (BEV) sales surpassed four million units in the fourth quarter of 2025, a 17% year-on-year increase. More than one in five vehicles sold globally were fully electric, with BEV sales increasing by 30% overall, largely driven by growth in China and a rebound in Europe. In Africa, EV sales more than doubled in 2024 to nearly 11,000 units, though uptake remains below 1% of the market, with Morocco and Egypt each reporting over 2,000 new EVs sold.

Kenya’s Regulatory Reforms

Kenya has unveiled green number plates for EVs, designed to be tools for enforcement and incentive targeting. This follows the launch of the National Electric Mobility Policy in early 2026, which includes adoption strategies, infrastructure rollout plans, fiscal incentives, and industrial ambitions. Kenya also plans to expand its charging infrastructure, targeting thousands of stations by 2030.

Regional Developments and Policy Approaches

Rwanda has extended tax exemptions on EVs, batteries, and charging equipment through 2028, demonstrating a long-term commitment to affordability. Morocco and Egypt are linking EV adoption to industrial export strategies, attracting investment and positioning themselves as manufacturing gateways for Europe. Renault is exploring a dedicated EV facility in Morocco, aiming for €3 billion in local sourcing and 80% supply chain integration. Egypt’s National Automotive Manufacturing Programme aims to attract global automakers to localize production and expand exports. Ethiopia has restricted internal combustion engine imports to accelerate electrification.

Chinese Influence and Local Manufacturing

Chinese EV technologies are driving a mobility revolution across Africa. BYD, now the world’s top EV seller, launched a US$5 billion manufacturing facility in Kenitra, Morocco. Kenya’s TAD Motors has launched locally built EV prototypes, aiming for 90% local content by 2026. South Africa is expected to welcome six more Chinese brands this year, and Ghana is courting Chinese EV makers for production and assembly. Nigeria has signed an MoU with South Korea to develop EV manufacturing capacity alongside charging infrastructure.

Challenges and Future Outlook

Despite progress, challenges remain, including high upfront costs, limited charging networks, weak grids, and a lack of large-scale financing mechanisms. Aligning transport electrification with a stable, increasingly renewable electricity supply will be crucial for future success. Approximately 30,000 EVs were in operation across Africa by mid-2025, primarily two- and three-wheelers, delivery fleets, and early-stage public transport electrification.