EVs could be cheaper to own than gas cars in Africa by 2040

Electric Vehicles in Africa: The Cost Barrier Holding Back a Clean Energy Revolution

As the world accelerates toward a greener future, electric vehicles (EVs) have become a symbol of the global energy transition. Yet, in many African countries, the road to widespread EV adoption is riddled with financial potholes that threaten to stall progress before it even begins.

A recent analysis by the Rocky Mountain Institute and BloombergNEF reveals that while EVs are gaining traction worldwide, African nations face unique economic and political hurdles that make them significantly more expensive to own and operate than their gasoline-powered counterparts.

The High Cost of Borrowing

In countries like Sudan and Ghana, where political instability and economic crises are ongoing realities, borrowing money is not just difficult—it’s expensive. This high cost of financing affects all major purchases, but it hits EVs particularly hard. Why? Because electric vehicles come with a higher price tag upfront compared to traditional cars. That initial cost, when combined with steep interest rates, means buyers end up paying significantly more over the life of the loan.

Kelly Carlin, a manager at the Rocky Mountain Institute’s carbon-free transportation program, explains that banks often view EV purchases as riskier investments. The technology is newer, the resale market is less established, and replacement parts can be harder to source. As a result, lenders may charge higher interest rates, further widening the affordability gap.

A Continent of Contrasts

The situation isn’t uniform across Africa. In countries like South Africa, Mauritius, and Botswana, financing conditions are already close to the levels needed for EVs to reach cost parity with gas vehicles. But in higher-risk nations—such as Sudan, currently embroiled in civil war, or Ghana, still recovering from a major economic crisis—financing costs would need to be slashed dramatically to make EVs a viable option for the average consumer.

This disparity highlights a broader challenge: Africa is not a monolith. Each country’s economic stability, infrastructure readiness, and policy environment play a critical role in determining whether EVs can take off.

The Path Forward: Solar Power and Infrastructure

Despite these challenges, experts believe there is a clear path forward. Nelson Nsitem, lead Africa energy transition analyst at BloombergNEF, emphasizes that making EVs affordable is the first and most crucial step. “People will start to pick up these technologies when they’re competitive,” he says.

One promising solution is the integration of solar-based charging systems. By harnessing Africa’s abundant sunlight, these systems could reduce reliance on the grid and lower the overall cost of EV ownership. However, Nsitem cautions that this alone won’t be enough. The continent also needs a significant expansion of charging infrastructure, particularly in countries where the electrical grid is outdated or unreliable.

Global Momentum, Local Challenges

While Africa grapples with these issues, the global EV market continues to surge. “The global trend is unmistakable,” Carlin notes. “The momentum is there.” But the pace of adoption varies widely, and Africa’s unique challenges mean it may take longer for the continent to catch up.

Still, the potential is enormous. With the right policies, financing mechanisms, and infrastructure investments, Africa could leapfrog traditional automotive technologies and become a leader in the clean energy transition. The question is not whether EVs will eventually dominate the roads—it’s how quickly African nations can overcome the barriers standing in their way.

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