Kabisa: Investing in Rwanda's electric vehicle landscape

Rwanda is making waves in the electric vehicle (EV) market with a dramatic reduction in import duties on EVs, opening up new opportunities for companies like Kabisa. Lukas Lukoschek, Co-Founder of Kabisa, sat down with CNBC Africa to discuss the company's success and future ambitions in Rwanda's rapidly evolving EV landscape. Kabisa, which entered the market two years ago, has been at the forefront of the EV revolution in Rwanda. Lukoschek highlighted the significant impact of the import duty reduction on their operations, enabling them to introduce electric cars at price parity with traditional internal combustion engine (ICE) vehicles. This move has sparked interest among both private consumers and businesses, positioning electric cars as a viable and cost-effective alternative. He emphasized the additional benefit of lower electricity tariffs in East African markets, which further enhances the operational savings of using electric vehicles. 'Electric cars are becoming a game-changer and a significant saving potential for businesses and private consumers,' Lukoschek noted. Despite the positive outlook, Lukoschek acknowledged the existing mindset barriers in the Rwandan market. Misconceptions around the cost and maintenance of EVs remain a challenge, requiring ongoing consumer education and firsthand experiences to drive adoption. Kabisa has taken proactive steps to address infrastructure barriers by establishing the largest EV charging network in Rwanda and an EV-specific garage for vehicle maintenance and repair, a crucial move in accelerating EV adoption. Lukoschek also highlighted Kabisa's partnership with a leading gas station operator to install charging stations across all stations in Rwanda, further expanding the charging infrastructure. The collaboration, supported by the Rwanda Green Fund, underscores the government's recognition of the importance of sustainable transportation solutions. One of the key areas of focus for Kabisa is the integration of renewable energy sources into their charging stations. Lukoschek shared the company's initiative to leverage solar power to charge EVs, maximizing the use of clean energy. The surplus renewable energy in Rwanda presents a valuable opportunity for the government to promote electric mobility and support the transition to green technologies. Looking ahead, Kabisa is exploring the potential for subsidies and carbon credits to incentivize the use of solar panels and enhance the sustainability of their charging network. In addition to passenger vehicles, Kabisa is targeting the commercial sector to drive further economic benefits through reduced transportation costs. Lukoschek highlighted the significant impact of EV adoption on the logistics sector, emphasizing the potential for cost savings and efficiency improvements. As Kabisa eyes expansion into regional markets, Lukoschek remains confident in the long-term growth prospects for electric vehicles in Africa. Despite varying tariff and tax policies in neighboring countries, he believes that the trend towards EV adoption is inevitable and anticipates a gradual shift towards sustainable transportation solutions across the region. Rwanda's leadership in embracing EV technology signals a promising future for the African EV market, with other countries poised to follow suit. The conversation with Lukoschek offers a glimpse into Kabisa's commitment to driving innovation and sustainability in Rwanda's electric vehicle landscape, setting a precedent for green mobility in the region.