NAIROBI/BAKU, Nov 20 (Thomson Reuters Foundation) – As the evening rush hour descends upon Nairobi, Kenyan motorcycle taxi driver Kariuki Mwangi skilfully weaves through the congestion on his electric bike, acutely aware that a quiet revolution is humming beneath him.

His emissions-free two-wheeler is at the forefront of a movement sweeping across several African cities, where ambitious initiatives are propelling the shift towards cleaner public transport.

“This bike is more efficient than the fuel bikes. It doesn’t need to be serviced regularly, the charging cost is cheaper than fuel and it’s a quiet, smooth and comfortable ride,” said Mwangi, 38, who bought his electric bike a year ago.

“If we don’t take care of our environment, where will we go? We don’t have any other planet.”

Africa’s electric vehicle (EV) sector has mushroomed in recent years with governments and startups in Kenya, Rwanda, Uganda and South Africa, among others, embracing e-mobility.

However, challenges in accessing investment have slowed the pace of transition and many in the electric mobility sector are looking to the COP29 climate summit in Baku, Azerbaijan, to kick-start momentum.

Prince Mustapha Audu, CEO of the Electric Motor Vehicle Company, one of the biggest e-mobility firms in Nigeria which has sold about 10,000 vehicles this year, is attending the annual U.N. climate summit for the fifth time.

“When you come to COP, a lot of good things are said, but the follow up – that’s always been challenging,” he said.

Audu said momentum was growing, with new initiatives supported by development finance institutions, but he wants more government commitments such as new infrastructure, targets to replace polluting vehicles, or supply agreements for EV taxis.

“That’s the kind of transaction that will set you on the right path,” Audu said. “The government needs to take an active step in these companies and to push them.”

The International Organisation of Motor Vehicle Manufacturers estimates Africa’s vehicle population surged to more than 60 million in 2020, a 17% increase from 2015.

While more transport has increased economic opportunities for millions of people, it has also led to a rise in carbon dioxide emissions and a fall in air quality.

The transport sector was responsible for 43% of Africa’s CO2 emissions in 2022, according to the International Energy Agency, while studies in cities such as Nairobi have found vehicles accounted for 40% of the air pollution.

Overall, African countries are responsible for less than 4% of global CO2 emissions. Required to update their national climate plans by February 2025, electrifying transport as the sector grows could have a major impact on future emissions.

Alexander Koerner, manager of global electric mobility at the United Nations Environment Programme, said the transport sector had the fastest-growing energy-related emissions on the continent.

“It must be in the focus of governments at COP29 if we are to decarbonise African economies,” Koerner told the Thomson Reuters Foundation.

PRIORITISING PUBLIC TRANSPORT

In many African cities, buses, motorcycles and three-wheelers are crucial to achieving COP targets, said Koerner.

“They are very intensively used, and you don’t need that huge charging infrastructure to supply them with electricity,” he said.

Over the past decade, electric vehicles in the shape of motorcycle taxis, buses and tuk-tuks have appeared on the bustling streets of Cape Town to the lush green hills of Kigali.

Researchers project the EV industry in sub-Saharan Africa to be worth more than $21 billion by 2027, almost double from nearly $12 billion in 2021.

Instead of focusing on private cars, countries are targeting the electrification of buses and taxis, the backbone of the continent’s urban mobility, to swiftly cut emissions and improve air quality.

The limited charging infrastructure and high costs make EVs less accessible for private use, but public fleets can utilise centralised charging.

“We deploy our charging infrastructure along the bus route so it’s convenient for bus operators.” said Jit Bhattacharya, co-founder of Kenya’s first electric bus company, BasiGo.

The start-up, which sources parts from China and assembles them locally, started in 2020 and has 43 buses in operation.

Bhattacharya said some African countries such as Kenya, where 90% of the nation’s electricity comes from renewable sources, were in a prime position to leverage their clean energy to power the e-mobility sector.

Kenya’s unused surplus of renewable energy last year, primarily from geothermal and wind sources, could have powered nearly 20,000 electric buses, he added.

“We want to see Africa become a leader in low carbon affordable public transport, because we already have the renewable energy,” said Bhattacharya.

INCENTIVES AND INNOVATION

Many African governments are leading the way, rolling out the red carpet for EV companies and offering tax breaks, reduced fees and subsidies as part of the welcome package.

Rwanda has implemented a slew of policies including import tax exemptions for EVs and equipment, rent-free land for charging stations, and lower corporate tax rates for EV firms.

African start-ups are proliferating, such as JUMO Energy in Kenya offering affordable EV motorcycle rentals, South Africa’s uYilo providing EV charging infrastructure and Rwanda’s Ampersand converting fuel-powered motorcycles to electric.

Many of these businesses offer creative financing options to reduce the high upfront costs, such as pay-as-you-go and lease-to-own models, which can prove more economical for consumers as they save on fuel expenses and maintenance costs.

But the region still faces several challenges in accelerating EV adoption.

Limited charging infrastructure, high import costs, unreliable electricity supply, a lack of government policy and low consumer awareness remain obstacles for most countries.

The biggest hindrance is access to finance.

Joanna Cheong, chief financial officer of ARC Ride, which sells electric motorcycles and offers a service to switch used batteries for charged ones, said high investments were needed to cover the high upfront costs of the EV sector.

These include research and development, expenditure on joint vehicle technology from countries such as China, as well as costs to install new charging infrastructure.

“We will be hoping for initiatives to boost investment in e-mobility from the COP climate talks,” said Cheong, whose company employs 75 people and has sold 1,100 vehicles since it started in 2020.

“Africa is one the last emerging markets in the world, so if you are not going to invest now, you will have missed the boat,” she warned.

(Reporting by Nita Bhalla; Editing by Jon Hemming. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)