African electric two-wheeler market – hindrances and opportunities

African electric two-wheeler market - hindrances and opportunities

According to a recent McKinsey analysis, the electrification of mobility in the five largest automotive markets in sub-Saharan Africa (excluding South Africa) will reach 35% by 2040, and electric motorcycles, as the most representative mode of transportation in the region, will play a leading role in this transformation. Check how to test a motorcycle battery?

African motorcycles are the main mode of travel, not only for personal transport, but also to extend the service of the motorcycle network.

In Kenya, Africa’s largest motorcycle market, nearly one-tenth of the population relies on motorcycles to make a living, and Rwanda, an East African country, has more than 100,000 petrol-powered motorcycles, and motorcycles account for 60% of all passenger transport.

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    However, as fuel prices rise, the cost of using it is gradually increasing, driving residents to buy electric motorcycles.

    In Rwanda, a liter of gasoline costs about $1.40 and has a range of about 45 kilometers, while an electric motorcycle can be ridden for 70 kilometers for $1.50.

    By switching to an electric motorcycle, a driver can save about $1,200 a year,” says the business manager of Rwanda Electric Mobility (REM), which is almost a yearly savings of one car.

    African electric two-wheeler market-1

    By switching to electric scooters, drivers can save about $1,200 a year”, almost one car a year. What are the best electric scooters for beginners?

    The significant cost advantage of electric motorcycles has ushered in a surge in the African market. According to a new report by the think tank Powering Renewable Energy, the African motorcycle market is expected to grow to $5.07 billion by 2027, and electric motorcycles will become the leading product for sustainable transportation transformation in sub-Saharan Africa.

    African electric two-wheeler market-2

     Meanwhile, Rwanda has set a goal of fully electrifying its fleet of “motorcycle cabs” by 2019, and the government has begun to offer tax and other incentives to achieve this goal, such as caps on the price of electricity at charging stations and rent-free land for the construction of charging stations, preferential parking and driving lanes for electric vehicles, and limits on polluting vehicles, among others, further motivating electric two-wheelers.

    Vehicles, etc., further stimulate the potential of the electric two-wheeler market. Who are the top 10 two-wheeler battery companies in the world?

    Orders skyrocketed

    Product turnover is clearly reflected in changing producer orders. Josh Whale, 41, CEO of Ampersand, a local Rwandan startup founded in 2018 that produces electric motorcycles, batteries and switching stations, says more and more motorcycle cab drivers are switching to electric motorcycles because of the cost of using them, which is not only a quick payback but also increases motorcycle drivers’ income by about 30%.

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    The decline in the cost of ownership has also increased motorcyclists’ incomess by about 30%.

    In addition, Ampersand’s own fleet has grown nearly ninefold from 150 electric motorcycles a year ago to 1,250 today, and REM’s motorcycle fleet has grown from 8 in 2020 to 300 today. Who are the top 5 electric motorcycle brands in Pakistan?

    And both companies have large backlogs of orders, with Ampersand having more than 9,000 customers lined up to buy vehicles and REM having more than 2,000 customers lined up to modify their motorcycles or buy new ones.

    African electric two-wheeler market-3

    Ampersand’s surge in orders is a direct reflection of the growing demand for electric two-wheelers in Africa.

    Insufficient power supply

    The commercial value and sustainable potential of Africa’s new energy motorcycle market is clear to all, but the lack of battery charging stations and power supply problems are also limiting the popularity of electric motorcycles, with 48% of the region’s basic electricity access being insufficient, making it difficult to establish a reliable charging network.

    A motorcyclist from Rwanda, Mr. Nsergimwa, said battery swap stations are common in the capital, Kigali, but less so in other provinces, so he sometimes transports passengers from Kigali to neighboring provinces and worries about electric motorcycles being stranded in remote places with insufficient power.

    African electric two-wheeler market-4

    The local government and enterprises are speeding up the construction of charging stations and improving electric support facilities to increase the power supply, and the electric two-wheeled market will further open up once electric motorcyclists are able to charge efficiently.

    Africa’s electric two-wheeled market demand, fast development, and is still in its infancy, has great prospects for development, the current African market more than 90% of the electric motorcycle is imported from China and India. What are the top 10 electric bike manufacturers in China?

    If China’s science and technology enterprises will be their own technology and manufacturing advantages and Africa’s demographic and market advantages, can be the optimal mode of development in the African market for the combination of resource allocation.

    African electric two-wheeler market-5

    In June this year, a mission led by Benin’s African Foreign Minister Olusegun Ajadi Bakari visited Changzhou, Jiangsu Province, China, and signed a strategic cooperation agreement with a local company, which plans to sell 500,000 electric motorcycles in Africa in the next five years, with a total amount of $1 billion.

    It also shows that Chinese exports to Africa’s blue ocean market have great potential.

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    Chocolatezhu
    Hi, I'm an experienced writer about mechanic and an expert on bike and e-bike tech who appreciates practical, beautifully-engineered things. And of course, I love cycling.
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