EV manufacturers from China invest in Africa to promote the green economy

With some of them setting up assembly plants and flagship stores there, Africa is becoming a major investment destination for Chinese electric vehicle manufacturers looking to expand internationally.

It is anticipated that investments in e-mobility will contribute to the reduction of harmful emissions, hence alleviating environmental concerns. Furthermore, due to their cheap maintenance costs and lack of fuel requirements, electric vehicles provide a number of financial benefits over conventional combustion engines.
 
Africa is a new market with enormous potential, which is why Chinese EV manufacturers find it attractive, according to Xn Iraki, an associate professor at the University of Nairobi's Faculty of Business and Management Sciences.
 
Iraki claimed that Chinese automobiles are affordable when compared to those made in other countries and that China has an accurate understanding of African purchase patterns.
 
He predicts that Chinese manufacturers of electric vehicles will keep making investments both in Africa and around the world, and that if their vehicles continue to be dependable and reasonably priced, they will probably take the lead in the market.
 
Chinese EV manufacturer Neta's distributor, Moja EV Kenya, launched 100 Neta V taxis and intends to expand to 500 by the middle of 2025. This came after its main showroom opened in Nairobi.
 
The business collaborated with banking institutions to develop a system that allows customers to pay for taxi services straight from drivers' bank accounts, facilitating accessibility to the vehicles.
 
Moja EV Kenya's assistant to the CEO, Erick Lumallas, stated that the company also plans to import lorries and public vehicles. He also mentioned that they are currently in talks with public vehicle Savings and Credit Cooperative Organizations that have shown interest in long-distance electric vehicles.
 
He went on to say that they are awaiting the required licensing paperwork in order to begin assembling the electric cars in Kenya, with the goal of eventually building the full vehicle there.
 
Two electric cars, imported from BYD, the largest EV manufacturer in the world and a Chinese multinational manufacturing corporation, were first presented in Kenya by Basi Go, a Nairobi-based provider of electric bus solutions in sub-Saharan Africa.
 
To fully assemble imported parts in Kenya, the business teamed up with Associated Vehicle Assemblers in 2023. The business declared in October that it would supply 1,000 electric buses in East Africa over the course of the following three years.
 
The company has received more than 300 reservations from bus operators in Rwanda, and plans are in the works to expand there as well.

Posted on : 30 Jan,2025 | News Source : ABNews

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