Technology

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

Published

2 years ago

February 25, 2022

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.

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Samed Olukoya

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.

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E-commerce

Jumia Nigeria Appoints Sunil Natraj as CEO, Outlines Ambitious Expansion Plans

Former Jumia Ghana CEO to Lead E-Commerce Giant as Massimiliano Spalazzi Steps Down

Published

2 days ago

December 8, 2023

Investors King

Jumia Nigeria, a prominent player in the e-commerce sector, has announced the appointment of Sunil Natraj as its new CEO.

Natraj, the former CEO of Jumia Ghana, will take the helm of the e-commerce business in January 2024, succeeding Massimiliano Spalazzi, who has been with Jumia Group for 11 years and will be stepping down in December 2023.

The announcement came during a media parley held in Yaba, Lagos, Nigeria, with Francis Dufay, the CEO of Jumia Group, unveiling Natraj as the new leader.

Natraj expressed Jumia’s commitment to becoming a truly Nigerian company and continuing the initiatives started by Spalazzi.

“We want to continue what Spalazzi started,” Natraj stated, emphasizing Jumia’s vision to expand its presence beyond Lagos.

He disclosed plans to extend operations to additional Nigerian cities, with Akure and Ilorin on the radar and a focus on cities en route to Ibadan, Warri, and Benin in the first quarter of 2024.

The overarching strategy is to create a comprehensive network covering the entire country.

Dufay outlined the ambitious goal of targeting cities with populations exceeding 20,000 people, citing successful precedents in Ghana, Cote d’Ivoire, and Senegal.

He acknowledged the challenges faced by Jumia, including a workforce reduction in Q4 2022 and a 73% cut in advertising budgets in Q3 2023.

Despite the hurdles, Dufay highlighted Nigeria as Jumia’s largest market and affirmed the company’s determination to navigate and thrive in the ever-evolving e-commerce landscape.

Technology

Google DeepMind Unveils Gemini AI Chatbots to Rival OpenAI’s GPT Series

Gemini Ultra Outperforms GPT-4 in Text, Image, Coding, and Reasoning Tasks

Published

2 days ago

December 8, 2023

Investors King

Google DeepMind has officially introduced its highly anticipated family of AI chatbots named Gemini, poised to compete with OpenAI’s renowned GPT series.

Among the key highlights is Gemini Ultra, the largest and most advanced model, which Google claims surpasses OpenAI’s GPT-4 in various domains, including text-based, image-based, coding, and reasoning tasks.

The announcement also shed light on the meticulous development process, emphasizing that Gemini Ultra is undergoing rigorous “trust and safety checks, including red-teaming by trusted external parties.”

This stringent evaluation process aligns with Google’s commitment to ensuring the reliability and security of its AI technologies.

Accompanying Gemini Ultra are two additional models, Gemini Pro and Gemini Nano. Gemini Pro is now accessible to the public through Google’s Bard chat interface, while the smaller Gemini Nano is designed to run on Google’s Pixel 8 Pro smartphone.

All three models exhibit the capability to process text, images, audio, and video, providing comprehensive outputs in both text and image formats.

Google envisions the integration of Gemini models into various products and services, including internet search and advertisements.

Developers will gain access to Gemini Pro through an API starting December 13, with Android developers empowered to build with Gemini Nano.

The Gemini suite is set to face competition from industry rivals, including OpenAI, Anthropic, Inflection, Meta, and Elon Musk’s xAI.

Google DeepMind’s ambitious move reflects its dedication to advancing AI capabilities and establishing a strong presence in the burgeoning field of AI chatbots.

This unveiling marks a significant milestone for Google DeepMind, a company born out of the fusion of DeepMind and Google Brain in April 2023.

The incorporation of Gemini into Google’s AI portfolio signifies the tech giant’s determination to close the gap with competitors and assert itself as a leader in AI innovation.

Fintech

Flutterwave Expands Financial Frontier: Acquires Money Transfer Licenses for 13 U.S. States

Africa’s Leading Payments Tech Firm Facilitates Faster, Affordable, and Secure Transfers between the U.S. and Africa

Published

2 days ago

December 8, 2023

Investors King

In a significant move towards advancing financial connectivity between Africa and the United States, Flutterwave, Africa’s premier payments technology company, has proudly announced its acquisition of money transfer licenses for 13 key U.S. states.

This strategic expansion aims to expedite, streamline, and secure the transfer of money from the U.S. to Africa and back.

The states covered by the newly acquired licenses include Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota.

These additions, combined with Flutterwave’s existing partnerships and licenses, now empower the company to serve customers seamlessly across 29 states in the U.S.

Money transfer licenses, issued by state regulators, play a pivotal role in enabling financial technology companies like Flutterwave to engage in the transmission of money.

The acquisition of these licenses fortifies Flutterwave’s commitment to regulatory compliance, safety, and the soundness of its services.

Stephen Cheng, Executive Vice President, Global Expansion and Partnerships at Flutterwave, emphasized the significance of this milestone.

“Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters trust among regulators, partners, and customers,” stated Cheng.

“We’re growing and are committed to servicing customer needs in as many geographies as possible, particularly with a significant African diaspora.”

Flutterwave’s popular solutions, such as the Send App, are set to benefit greatly from this expansion.

The Send App facilitates easy and secure money transfers between the U.S. and Africa, catering to both individual users and enterprises that rely on Flutterwave for global last-mile payouts.

“Sending money between the U.S. and Africa has been challenging for the African diaspora. These licenses pave the way for Flutterwave to make the Send App available to the African diaspora in the U.S., offering a super user-friendly money remittance experience,” explained Olugbenga Agboola, Founder and CEO at Flutterwave.

“Our mission is to connect Africa to the world and the world to Africa by simplifying payments for endless possibilities. These licenses move us one step closer to our vision, and we will continue to expand this feat to ensure coverage for all states in the U.S. and beyond.”

Flutterwave remains steadfast in its commitment to providing accessible remittance services across the U.S. and has outlined plans for further expansion of licensing coverage in the near future.

This ambitious endeavor reflects the company’s dedication to fostering financial inclusion and creating a seamless financial bridge between continents.