Finding cost effective & green transport solutions in Tanzania

The public transport sector in Tanzania is undergoing a transformation, with the potential for 3 wheeler electric vehicles to become the norm. In a recent interview with CNBC Africa, Niko Kadjaia, the CEO of Growtri, shed light on the feasibility and growth of 3 wheelers in Dar es Salaam. Currently, the most popular mode of public transport in Tanzania remains 2 wheelers. However, the uptake of 3 wheelers has been steadily increasing, accounting for around 20% of public transport vehicles on the road annually. What sets Tanzania apart is its significant number of electric vehicles, with over 5,000 already in operation. This demonstrates a positive shift towards embracing electric vehicles over traditional combustion engines. When it comes to charging infrastructure for electric vehicles, Tanzania has taken an improvisational approach. Charging stations have been set up organically, primarily using socket-based systems where users attach their vehicles to meters. While more sophisticated charging stations are present in countries like Kenya, Tanzania's improvised infrastructure has proven to be effective in supporting the growing number of electric vehicles on the road. One of the key advantages of transitioning to electric 3 wheelers is the significant reduction in operating costs. Compared to traditional vehicles, electric 3 wheelers can cost up to 90% less per kilometer to operate. This substantial cost savings translate to increased daily income for operators, making it a lucrative and life-changing opportunity for many in the sector. This cost-effectiveness has contributed to the rapid growth of the electric vehicle sector not only in Tanzania but also across the East African Community. As the demand for electric vehicles continues to rise, the question of local manufacturing becomes crucial. Niko Kadjaia highlighted Growtri's phased approach to developing the industry, starting with vehicle assembly and moving towards local battery assembly and eventually full manufacturing capabilities by 2025. The company's expansion plans are supported by investors, with a focus on developing not just vehicles but also battery storage systems. While the potential for carbon credits to finance operations is apparent, Growtri aims to build a strong business case independent of carbon credits. Kadjaia emphasized the company's focus on creating a sustainable and economically viable business model without relying heavily on carbon credits as a primary source of funding. In conclusion, the rise of 3 wheeler electric vehicles in Tanzania signifies a significant shift towards sustainable and cost-effective transport solutions in the region. With a growing demand for electric vehicles and supportive infrastructure in place, companies like Growtri are at the forefront of transforming the e-mobility landscape in Tanzania and East Africa.