Nigeria and Kenya lead production of electric vans using Chinese kits

E-Mobility in Africa: Local Assembly of Electric Vans and Taxis

Electric mobility companies in Africa are increasingly assembling electric vans and taxis locally. This development leverages Chinese-made kits and innovative financing models to enhance the adoption of electric public transport across the continent.

A Lagos-based company has initiated the assembly of 18-seater passenger electric vans with kits from Chinese automaker Dongfeng Motor Corp. The company, Saglev, aims to produce up to 2,500 vehicles annually and plans to introduce 17 electric models for Nigeria and other West African markets.

Saglev, a joint venture between Nigeria’s Stallion Group and Chinese automaker Sokon Motor, is also planning to install solar-powered charging stations to provide reliable power sources, addressing a key challenge in the adoption of electric vehicles in some African regions.

In Kenya, Rideence Africa has signed a $2.46 million agreement with Mombasa-based Associated Vehicle Assemblers (AVA) for the local assembly of electric taxis and minibuses. Kits will be supplied by China's Jiangsu Joylong Automobile and Beijing Henrey Automobile Technology.

AVA Managing Director Matt Lloyd highlighted that this partnership establishes Kenya’s first dedicated electric vehicle assembly line, showcasing the capability to assemble electric vehicles locally at scale.

Kenya and Nigeria, two of Africa’s largest economies, are advancing local electric vehicle assembly to reduce fuel costs, decrease emissions, and boost domestic manufacturing capacity. Electric vans and minibuses are vital to public transport across Africa, where Japanese models currently dominate.

Electric vehicle charging costs average around $3 for up to 200 kilometers, compared to over $15 for petrol for similar distances. The local assembly of electric vans is emerging as a strong market segment, with reduced costs attracting more operators.

Kenya hosts one of Africa's most active electric mobility markets, with startups assembling and deploying buses and vans for public transport and ride-hailing services. Ethiopia and South Africa have also entered the market, with Ethiopia's Belayneh Kinde Group assembling approximately 150 minibuses monthly using Chinese components.

To enhance affordability, companies like Rideence employ pay-as-you-drive and lease-to-own options, allowing operators to avoid high upfront payments. For instance, Rideence leases its taxis to drivers for about $18 per day. BasiGo-Kenya Vehicle Manufacturer requires operators to pay a deposit and then approximately 20 US cents per kilometer driven.

These financing models align with the financial realities of transport operators in Africa, where access to credit is limited. This approach mitigates risks for both assemblers and operators, facilitating quicker deployment of vehicles on the road.

Currently, there are about 30,000 electric vehicles in Africa, a small fraction compared to gas and diesel-powered vehicles. Last year, the continent manufactured only 1.1 million vehicles, with 90% produced in Morocco and South Africa, according to the Africa Mobility Alliance.

Based on reporting by Africanews.