Opportunities for local electric vehicle manufacturing in Africa

Abstract

In order to achieve the Sustainable Development Goals (SDG) of the United Nations on Clean Energy, Sustainable Industrialization and Climate Change, there is an urgent call on Africa to decarbonize transportation. Achieving these goals requires that Africa grows its current, largely, non-existent EV fleet to a reasonable level in the near future, to counter harmful emissions from fossil fuel vehicles. This paper discusses the opportunities available to African entrepreneurs on investing in electric vehicle (EV) manufacturing. It also discusses the factors militating against the establishment of a viable automotive sector. To exploit the opportunities offered despite the limitations, the paper advocates a paradigm shift from the conventional vehicle assembly of foreign vehicles to one in which African original designs are made in low-cost, low-volume vehicle manufacturing plants consisting of general-purpose workshop equipment and intensive labour such that the whole value chain for vehicle manufacturing is developed.