Watu Africa's EV push amidst Uganda's oil boom

East Africa is at the forefront of an energy transformation, with the region poised to embrace electric mobility as Uganda prepares to tap into its oil reserves. Watu Africa, with a target to finance 40 per cent of East Africa's electric vehicles by 2027, is at the helm of this revolution. In a recent CNBC Africa interview, Derrick Muhangi spoke to Erick Massawe, the Country Manager of Watu Kenya, shedding light on the regulatory landscape and the implications of Uganda's oil economy on the vision of electric mobility in the region. Erick Massawe highlighted the innovative approaches Watu Africa is employing to drive the adoption of electric vehicles in East Africa. By partnering with companies like Bordalex to form Gogo Electric in Uganda, they are pioneering vehicle assembly and battery production. This integrated model, coupled with financing solutions offered by Watu, accelerates the adoption of electric vehicles. In Kenya, Watu has adopted a non-biased approach, partnering with major manufacturers like Accra, Ambersand, and Spiral to finance electric vehicles from various producers. The ultimate goal is to support the transformation of the transportation industry from traditional internal combustion engine vehicles to electric ones. Massawe emphasized the importance of partnerships and friendly financing terms to facilitate this transition. Navigating the regional regulatory systems is crucial for the success of electric mobility in East Africa. Massawe explained that while regulatory regimes differ across markets, Uganda stands out for its pro-electric mobility stance. Despite the looming petroleum exploration and production in 2027, the Ugandan government supports electric mobility through subsidies and regulatory frameworks. This favorable environment, coupled with the economic benefits of electric vehicles in terms of cost-effectiveness and sustainability, motivates countries across the region to embrace electric transportation. Tanzania, for instance, is also making strides towards green mobility by exploring electric and compressed natural gas (CNG) vehicles. The impending oil production in Uganda in 2025 is expected to have a significant impact on the country's economy, leading to an increase in national GDP and disposable income. As the service economy expands, the demand for delivery and transportation services will rise, presenting a lucrative opportunity for the electric mobility industry. Uganda's support for electric vehicles, evidenced by the introduction of electric buses, sets a positive precedent for the region's sustainable transportation sector. Watu Africa remains optimistic about the future of electric mobility in East Africa, leveraging partnerships, regulatory support, and economic incentives to drive the shift towards a greener transportation landscape.