Connect with us

Technology

Paving the Way for EVs: How Greener Cars Will Change Road Trips and Infrastructure

Published

on

Electric car

Adoption of electric vehicles (EVs) is set to pick up in South Africa in years to come, driving changes to filling stations, road trips and how people pay to power their vehicles.

This is according to Payment24, specialists in fuel and fleet management systems, who say EVs have been slow to take off in South Africa, but that uptake is set to grow as the upfront cost of these vehicles drops and as more infrastructure becomes available to support them.

Payment24 CEOs Shadab Rahil and Nolan Daniel note that the logistics of running EVs will mean that people will plan their trips around where they can charge their vehicles, and there will be changes in the way filling stations will entertain customers while they wait to charge their cars, and how people will pay for their power.

Slow start

According to Green Cape’s Electric Vehicles Market Intelligence Report released this year, of the passenger car sales in 2019, petrol vehicle sales accounted for 299,048; diesel vehicle sales for 55,563; and there were only 72 plug-in hybrid EV sales, 154 battery EV and 181 hybrid EV sales.

Rahil and Daniel say that EV uptake in South Africa has been slow partly because the lowest-cost EVs available in South Africa are priced at around R600,000, and due to limited numbers of public charging points – particularly outside of the major metros. Daniel says: “Range anxiety has also been a factor, with concern about what should happen if a battery runs out of power during a trip. But battery technology has improved dramatically, so EVs can now be charged overnight at home, or at a high-capacity public charging station in around 20 minutes, which would power a vehicle for 100km or more. For most people, a 100km range is ample for the day.”

He says installing a public charging point can cost in the order of R1 million, making many fuel stations and other public facilities loath to make the investment when there are limited numbers of EVs on the road. With between 250 and 300 public charging stations across South Africa at the moment, there is currently around one charging station for every four EVs in the country, reports Green Cape which is one of the highest ratio of Chargers vs EV’s in the world.

EV uptake set to boom

However, EV prices are dropping and more vehicle manufacturers are entering the EV market, bringing more choice to South Africans. This charge could be lead by Chinese manufacturers who can provide affordable EVs to the African markets in near future. More EVs on the road will drive the installation of more charging stations outside of the major metros, making longer trips in EVs more feasible, and changing the face of the traditional South African road trip. “Charging EVs will definitely change the fuel station experience,” he says. “Where people could fill up with liquid fuel and be in and out in 5 minutes, with an EV they would be there for far longer – waiting their turn to charge, and actually charging their vehicles. This will drive a change in what fuel stations offer their customers in terms of refreshments and entertainment.”

EV uptake is already causing oil companies to move to broader energy provision, and is also likely to increase demand for high capacity power, creating new opportunities for small scale energy producers.

Strong business case for EVs

Rahil notes that once the initial costs of an EV have been overcome, there is a compelling case for EVs: “Not only is the technology eco-friendly, but the running costs are significantly lower for EVs than ICE vehicles. It’s almost a 1:5 ratio of EVs to ICE vehicles, with power costs as low as 25c per km for an average EV. From a maintenance perspective, EVs have significantly fewer moving parts, so maintenance is a lot cheaper. We expect to see strong adoption among consumers, fleet owners, public transport and logistics companies.” He notes that EV trucks will have significantly larger battery capacity than consumer vehicles, making electric power a compelling proposition for courier and logistics firms, who will likely embrace electric and hybrid power for everything from delivery scooters to large trucks.

Paving the way for seamless integrated payments

Says Rahil: “Payment24 is already working towards integrating EV charge point payments with fuel payments so that fleet owners and fuel stations will be able to manage all EV and ICE (internal combustion engine) payments on a single platform. This has become a must-have in North America and Europe, and will become increasingly important in South Africa in years to come.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Telecommunications

MTN Gains 5.7m New Subscribers, Reactivates 2.6m Barred SIMs in H1

MTN Nigeria announced it gained 5.7 million new subscribers and activated 2.6 million barred sims in the first half (H1) of 2022.

Published

on

MTN Nigeria, Africa’s multinational mobile telecommunications company, announced it gained 5.7 million new subscribers and activated 2.6 million barred sims in the first half (H1) of 2022.

The company reported in its unaudited financial statement published last week.

It would be recalled that the Nigerian Communications Commission (NCC) mandated all telecommunications companies to block all Subscriber Identity Module (SIMs) not linked with the National Identification Numbers (NINs).

In all, MTN Nigeria blocked a total of 19 million SIMs as of October 2021 when the policy was first implemented, according to Karl Toriola, MTN Nigeria CEO. Presently, a total of 11.6 million have been activated.

Speaking on the impact of the directive on MTN Nigeria, the CEO said “Despite the slower growth recorded in Q2 due in large part to the restriction of outgoing calls for approximately 19 million of our subscribers (when initially implemented) in line with the NCC’s directive, we remained largely on track, delivering service revenue growth in line with our medium-term guidance of at least 20 per cent in H1.

“Data revenue rose by 51.6 per cent, maintaining the accelerated growth trajectory through increased subscribers and data usage.”

The MTN boss also confirmed that the firm maintained strong commercial momentum and gained a net addition of 5.7 million mobile subscribers.

Furthermore, he assured that MTN would continue to engage its affected customers and support the NIMC in accelerating NIN enrolment in the country.

MTN Records Notable Achievements following the Directive

Toriola disclosed that the company invested N311.6 billion on its 4G network in a bid to improve its network coverage. He said the company now covers 75.3 percent of the population, a notable increase since 2021.

In addition, he noted that the telco acquired one lot of 100MHz in the 3.5GHz spectrum band from the NCC, which has brought them closer to launching their 5G services across the country.

“We achieved some important strategic milestones in H1 towards delivering our Ambition 2025 strategy. This includes the final approval for our MoMo Payment Service Bank (PSB) and the commencement of commercial operations on May 19, 2022″, he added.

What other Telcos Experienced

While MTN recounted its achievements, especially in customer base, other telcos in the country such as Airtel revealed that it lost about $34m in revenue due to the Federal Government’s directive to bar outgoing calls from SIMs not linked to their NINs.

Airtel confirmed they had lost $34m in revenue following the directive and that data revenue grew by 24.8%.

“Voice revenue grew by 10.8 per cent in constant currency, driven by customer base growth of 12.7 per cent while voice ARPU growth was flat”, Airtel said in a recent report.

However, Globacom and 9mobile did not publicly release their financial reports.

Continue Reading

Telecommunications

Communication Minister Kicks Against FG’s Proposal to Impose 5% Tax on Calls, Text, Data

Nigeria’s Minister of Communications and Digital Economy, Isa Pantami, has kicked against the Federal Government’s plans to impose a 5% excise duty on telecommunications services in the country.

Published

on

Ibrahim-Pantami-Isa- Investors King

Nigeria’s Minister of Communications and Digital Economy, Isa Pantami, has kicked against the Federal Government’s plans to impose a 5% excise duty on telecommunications services in the country.

The minister, who spoke at the maiden edition of the Nigerian Telecommunications indigenous Content Expo, NTICE, in Lagos, said the sector, which was already drawing in massive interest, creating jobs, and enlarging huge revenue to the GDP, should not be inconvenienced with such taxes.

He said: “The 5 percent excise duty will overburden the industry. As a Minister, I was neither consulted nor obtained a memo to that effect. Even the appropriate lawmakers that were supposed to be talked with have also told me they were not.

”Things are not done that way. Besides condemning the tax, we will take every lawful step to guarantee that the tax does not stand.”

The minister also argued about the large percentage of importation of ICT and telecoms equipment into the country, even when some of these equipment could be acquired in the country.

He gave a marching order to all stakeholders that henceforth, the Federal Government will not condone importation of anything into the country when it can be manufactured here in the country.

“The sector has to reasonably reduce importation. The Nigerian Communications Commission, NCC, and the National Office for the Promotion of Indigenous Content, NODIT, should carry out this policy.

“By 2025, we’ll be qualified to increase our indigenous content and decrease importation by about 20 percent.”

The Minister’s attack on the excise duty is coming after major stakeholders in the sector, including the Association of Licensed Telecoms Operators of Nigeria, ALTON, Association of Telecommunications Companies of Nigeria, ATCON, and National Association of Telecoms Subscribers, NATCOMS, also kicked against the motion, interpreting it as anti-people, provocative, unusual, cold and unreliable.

At a stakeholders’ forum organized in Abuja by the NCC to shed light on its proposed commission, they also complained that such imposition would help aggravate the misery of the Nigerian masses who already had been pushed into suffering and severe poverty.

The new five percent Excise Duty is part of the new finance act signed into law by the President in 2020. It is meant to be received by the Nigerian Customs Service, and President Buhari gave a ruling that it should be carried out on all telecoms service providers in the country, also on all local and foreign goods and services.

The Minister of Finance, Budget, and Planning, Mrs. Zainab Ahmed, had also at that event, persuaded stakeholders to assist the commission, saying the decision was informed by the dwindling revenue of the federal government from oil and gas.

She said other countries in Africa, involving Malawi, Uganda, and Tanzania, among others, have all keyed into the revenue generation structure.

Continue Reading

Fintech

Digital Wallet Users to Exceed 5.2 Billion Globally by 2026

The total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022.

Published

on

Digital Banks in Nigeria - Investors King

A new study from Juniper Research has found that the total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022; representing strong growth of over 53%. The research predicts that the presence of ‘superapps’ will drive digital wallet use in developing countries that are currently considered cash heavy.

Superapps are multipurpose apps able to integrate digital payments alongside other services, including wealth management and eCommerce.

Asia Pacific Countries to Experience Rapid Growth

The study identified three countries in Asia Pacific primed for rapid growth over the next four years:

1.    Philippines
2.    Thailand
3.    Vietnam

It predicts that the adoption of digital wallets will near 75% of the population in each of these countries by 2026. It cited the rising access to online and mobile commerce services as driving forces behind the use of digital wallets, notably through superapps.

Research co-author Damla Sat explained: “These rapidly growing markets represent a significant opportunity for digital wallet vendors, but they must work intelligently to maximise their position. A highly competitive wallets’ landscape means that vendors must differentiate themselves by integrating machine learning to provide spending insights and introduce new services such as wealth management to add value.”

Innovation Needed for Future QR Payments Growth

Additionally, the research identified QR code payments as the most popular digital wallet transaction type in 2026; reaching 380 billion transactions globally, and accounting for over 40% of all transactions by volume. However, as usage within markets including China and India reaches its apex, vendors must innovate to remain competitive entering new geographic markets. Therefore, the research recommends that QR code payment vendors integrate loyalty features and personalised marketing capabilities to incentivise merchant acceptance, which will be critical to driving adoption.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending