Africa electric two-wheeler market is projected to witness a strong CAGR of 24.78% during the forecast period 2024-2031FY, growing from USD 554.68 million in 2023 to USD 2612.14 million in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
Internal Combustion Engines (ICE) are increasingly being replaced with electric vehicles (EVs) because of higher fuel prices and rising vehicular pollution. Electric motorcycles and e-scooters are gaining popularity throughout the region because they are portable, simple to use, and help achieve the objective of zero carbon emissions. Additionally, Egypt and Morocco are popular travel destinations for tourists from abroad. The demand is being driven by the tourists who choose to rent e-scooters for local transportation and adventure. African tourism came back on its pre-covid trajectory and is anticipated to impact the sales of sustainable mobility due to the government’s focus on sustainability and efficiency.
The international promotion of electric two-wheelers has also positively impacted the adoption of electric two-wheelers. The major electric two-wheeler manufacturers across the globe, especially Indian and Chinese companies with affordable alternatives are entering the African market. These companies are also investing in the region for the expansion of distribution and manufacturing facilities. The crucial role of these companies is to accelerate the sales of electric two-wheelers and build infrastructure and employment opportunities for the natives.
For instance: in August 2023, Indian company One Electric Motorcycles announced that they have begun to produce their flagship electric motorcycle “KRIDN” in Africa. They have entered a joint venture (JV) with a local well-established vehicle manufacturing entity and have provided all the necessary parts, technology, and knowledge to assemble their motorcycles. They also plan to set up a battery production plant in Africa.
Urban Mobility and International Collaborations to Influence Demand for Electric Motorcycles
Few countries in Africa have a higher rate of urbanization than other developing nations. The rapid migration of the rural population into urban areas is putting pressure on the transport infrastructure and energy requirements. Since most public transport works on fuel, there is a gasoline shortage with increased fuel prices. Using ICE two-wheelers contributes to issues including fuel scarcity, high fuel costs, and rising pollution. Africa, therefore, requires alternate transportation that decreases reliance on gasoline. Hence, the use of electric two-wheelers with lower emissions and harmful pollutants in the air, is becoming increasingly popular. The local companies also collaborate with international EV giants to develop technologies for enhanced electric motorcycles with higher efficiency.
For instance, in October 2023, Kofa, Ghana’s leading battery network solutions provider, teamed up with China’s top electric vehicle brand, TAILG Group. The partnership is to launch a new electric motorcycle, the Jidi. The Jidi is equipped with Kofa’s cutting-edge battery swap technology, making it the first of its kind in the country. The company’s mission is to build an inclusive, cost-effective, and customer-focused electricity network that is powered by portable battery technology and renewable energy sources. The company’s Kofa swap-and-go system is a fully distributed battery and swap station network that allows users to access a fully charged battery in a matter of seconds.
Expanding Tourism, Rapid Urbanization, and Attracts Adoption of Electric Scooters in Africa
The increasing growth of tourism in African cities such as Cape Town is leading to the rapid adoption of electric two-wheelers as tourists look for cost-effective and comfortable transportation options. Electric scooter renting company Lime introduced a mobile app to serve tourists that positively impacted their business growth and raised the demand for electric two-wheelers. Per capita income, job creation, infrastructure development, and abundant natural resources are the main drivers of economic development in Africa.
Urbanization is higher in Africa than in other emerging economies with higher potential for international brands. Rapid population growth is putting strain on existing transport and infrastructure. Most vehicles used for transport are fuel-driven, resulting in a high oil demand. The issues of fuel shortage, fuel prices, and pollution are caused by ICEs. Africa needs alternative modes of transport that reduce fuel dependency.
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