Connect with us

Technology

Electric Vehicles Are a Critical Component of Achieving Climate Neutrality – but is Sub-Saharan Africa Ready to Make a Move to Electric?

Published

on

Electric car

Globally, the automotive future is looking increasingly electric, due to growing regulatory moves, including forthcoming bans on sales of internal combustion engine (ICE) vehicles, shifting consumer behavior, and ongoing improvements in battery and charging technology.

By 2035, the world’s major automotive markets – the United States, European Union, and China – are expected to sell only electric vehicles (EVs), and by 2050, 80 percent of the world’s vehicle sales are expected to be electric. EVs are a critical component of achieving climate neutrality and improving quality of life in cities by reducing air and noise pollution. But how will this trend play out in sub-Saharan Africa? And what are the opportunities and challenges associated with the region’s electric transport future?  

In our new report, Power to move: Accelerating the electric transport transition in sub-Saharan Africa, we explore the readiness of sub-Saharan Africa to participate in the electric mobility transition.

Transport currently makes up 10 percent of Africa’s total greenhouse gas (GHG) emissions, which is likely to increase in line with sub-Saharan Africa’s expanding vehicle parc – the total stock of vehicles on the road. In the six countries that make up around 70 percent of sub-Saharan Africa’s annual vehicle sales and 45 percent of the region’s population (Ethiopia, Kenya, Nigeria, South Africa, Rwanda, and Uganda), the vehicle parc is expected to grow from 25 million vehicles today to an estimated 58 million by 2040, driven by urbanization and rising incomes. As its vehicle parc grows, the challenge for sub-Saharan Africa will be to push for more sustainable mobility.

The research finds that while sub-Saharan Africa faces some unique challenges in its electric mobility transition – including unreliable electricity supply, low vehicle affordability, and the dominance of used vehicles – a growing ecosystem, focusing particularly on electric two-wheelers, is emerging in the region.

Some governments in sub-Saharan Africa have already announced electrification targets for vehicles and incentives for EV adoption. Rwanda, for example, announced tax exemptions for EV sales. Moreover, a growing number of start-ups are investing in the region’s nascent electric two-wheeler space to design vehicles at a cost and durability suitable for the local market.

“Two-wheelers will likely be the first segment to be electrified, with electric two-wheeler sales expecting to rise to 50 to 70 percent of all sales by 2040. In Kenya and Nigeria alone – two of the largest two-wheeler markets in sub-Saharan Africa – this would translate into three million to four million electric two-wheeler sales per year by 2040,” says Gillian Pais, a Partner in McKinsey’s Nairobi office. “Vans and minibuses would likely be next, followed by passenger cars. In aggregate, across all vehicle segments, electrification could result in a 20 to 25 percent annual carbon emissions reduction in 2040.”

Countries such as Rwanda and Kenya are expected to transition faster, with EVs accounting for 60 to 75 percent of all two-wheeler sales by 2040. This is due to a range of factors, such as stronger regulation on the age of used-vehicle imports in Kenya, incentives for EV adoption in Rwanda, and comparatively better electricity reliability in these countries.

Electrification will play an important role in the transformation of mobility in sub-Saharan Africa and presents major opportunities in all vehicle segments, although the pace and extent of change will differ. To adopt, however, the entire mobility ecosystem – governments, development partners, and private-sector stakeholders – must work together to make the transformation successful.

Failure to create an enabling ecosystem for electric transport could see the region becoming a dumping ground for old ICE vehicles, setting back the continent’s carbon-emission-reduction goals as the vehicle parc continues to grow in the decades ahead.

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

Social Media

Tesla CEO Elon Musk Given 22 Days Ultimatum by A U.S Court to Acquire Twitter

Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

Published

on

Twitter - Investor sking

Following Elon Musk’s decision to opt-out of the $44 billion Twitter acquisition deal, a Delaware Court of Chancery in the United States has ordered the Tesla CEO to acquire the micro-blogging platform within 22 days.

The judge presiding over the case made the order following Musk’s decision to proceed with the acquisition of the social networking company 12 days before the court trial on the lawsuit Twitter filed against him. 

Musk had earlier opted out of the Twitter deal where he accused the platform of thwarting his information rights by not providing enough data on fake accounts on the platform.

Musk claimed in a tweet that Twitter is “20% fake/spam accounts” and suggested Twitter’s filings with the Securities and Exchange Commission were misleading.  The company had earlier disclosed that only less than 5% of its daily active users are spam accounts.

However, the Tesla CEO wasn’t convinced by the number of bots accounts twitter claimed were on the platform. He, therefore, insisted that his acquisition of the social media company cannot move forward until he sees more information about the prevalence of spam accounts.

It should be recalled that on May 27, 2022 Investors King reported that

Twitter also displeased by Musk’s action filed a lawsuit in the Delaware Court of Chancery, urging him to complete his $44 billion takeover of the social media company where it accused him of “outlandish” and “bad faith” actions that have caused the platform irreparable harm and “wreaked havoc” on its stock price.

Recently, during a court hearing after the judge at the Delaware court had given Musk a 22 days ultimatum, he asked that Twitter drop the initial lawsuit scheduled for October 17, but the social media company insisted that it would keep the litigation alive until the deal was concluded.

Musk had made the request stating that the lawsuit should be stepped down to enable him to raise the needed capital for the acquisition ahead of the October 28 deadline.

Continue Reading

Fund Raising

Purple Elephant Ventures Has Raised $1 Million Seed Fund to Modernize Africa’s Travel Sector

Purple Elephant Ventures (PEV) has raised $1 million in pre-seed funding to boost innovation in Africa’s tourism.

Published

on

Purple Elephant Ventures

Kenyan-based venture studio with a focus on Tourism, Purple Elephant Ventures (PEV) has raised $1 million in pre-seed funding to boost innovation in Africa’s tourism.

The venture studio seeks to achieve this goal by building creative startups from scratch focused on leveraging technology to scale tourism, as it plans to build about four startups at the intersection of travel, climate, and technology, every year.

Investors who took part in this recent $1 million pre-seed funding round include Klister Credit Corporation, a Canadian investment firm, and The Untours Foundation.

Also Angel investors such as Fede Pirzio-Biroli, founder of Playfair Capital; Ian McCaig, former CEO of lastminute.com and M-Kopa board member, Anthony Rock, president of Rock Impact Capital; Rich Hoops, executive director at Impact Capital; Jim Villanueva, managing director of Global Partnerships Social Venture Fund, and Helena Riese Harstad, co-founder and chair of the Optimizer Foundation.

Speaking on the recent seed raised and the startup mission, Purple Elephant Ventures CEO Ben Peterson said, “I think what’s exciting for the team is all of the possibilities to digitize tourism for a greener future. And one of the great advantages of working in a studio is that we get to play around with new innovative ideas all the time.

“We have what we call ideation sessions, where we have very structured conversations around examining the tourism industry from the perspective of building businesses that will help reduce the carbon footprint of Africa’s tourism industry.”

He further disclosed that despite the uncertainty in the tourism sector during the Covid pandemic period, the Purple Elephant Ventures team did not slow down on its efforts, rather they went on to launch two startups during that period, which are Elephant Bookings, a software service (SaaS) product, and Nomad.Africa, a content-to-commerce magazine.

Purple Elephant Ventures seeks to enable startups in the tourism sector raise enough capital to facilitate sustainability, as well as have an online presence to aid global scale.

Founded in 2020, the company’s mission is To build a portfolio of innovative companies that unlock the unrivaled economic power of tourism to protect and grow Africa’s natural capital.

Continue Reading

Telecommunications

MTN Celebrates Customer Service Week by Gifting Subscribers Airtime Top-up

MTN is celebrating its customer service week by gifting Airtime top-ups to its loyal customers through engaging activities on all its social media platforms.

Published

on

MTN

Mobile telecommunications giant MTN is celebrating its customer service week by gifting Airtime top-ups to its loyal customers through engaging activities on all its social media platforms.

The telecommunications giant is celebrating this year’s edition with exciting activities which include online competitions, trivia quizzes, giveaways, and lots more.

To participate in the Customer Service Week activities, subscribers are required to follow all the company’s social media accounts where all activities and information for the week will be communicated, Investors King understands.

MTN’s theme for this year 2022 Customer Service Week is “No US without U” where it is appreciating the loyalty of its customers and partners of the brand for over 20 years of partnership and loyalty.

Customer Service Week is an international celebration of the importance of customer service and of the people who serve and support customers on a daily basis.

The goal of the event is to emphasize the importance of customer satisfaction and also listen to customers as critical components of building a business. During this week customers are given different types of packages, such as gifts, rewards, and other exciting offers.

Speaking on MTN’s “Customers Service Week” and its commitment to customers, the Chief Customer Service Officer Ugonwa Nwoye said “Our customers mean so much to us, they are the reason we are thriving for more than two decades. This is why we will continue to work tirelessly to ensure our customers stay happy and satisfied.”

Customer service has been described as a core means of building brand loyalty and encouraging customer satisfaction. According to Forbes, It is reported that around 70% of American customers report they’re willing to spend more money with companies that provide excellent service.

In other words, a company’s excellent customer service can be one of the most powerful customer retention tools they will have.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending