On the 7th of October 2024, Botswana officially unveiled its first batch of locally assembled electric vehicles (EVs) in Gaborone, the capital city.
The unveiling ceremony happened at the Botswana Institute for Technology Research and Innovation (BITRI) showroom. BITRI was established in 2012 as a parastatal under the country’s Ministry of Communications, Knowledge, and Technology.
This development comes as a culmination of a partnership between BITRI and two Chinese auto companies, Skywell Auto and CHTC Kinwin Automobile Co. In terms of the partnership, Skywell has partnered with BITRI in assembling sport utility vehicles (SUVs) while CHTC Kinwin, is assisting Botswana with the production of electric buses.
With these partnerships, Botswana officially joins the booming global EV market, which has risen annually in the past decade.
According to the International Energy Agency, almost 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. This is more than six times higher than in 2018, just 5 years earlier, proving that electric vehicles are the future.
In 2023, there were over 250,000 new EV registrations per week, more than the annual total in 2013, ten years earlier. Electric cars accounted for around 18% of vehicles sold in 2023, up from 14% in 2022 and only 2% five years earlier, in 2018. These trends indicate that growth remains robust as electric car markets mature due to better battery technology, and changes in buying trends as more and more people embrace green energy. Battery electric cars accounted for 70% of the electric car stock in 2023.
More jobs are expected to be created from this partnership.
From software developers and regional planners to vehicle assemblers and construction workers, jobs in the EV industry are rising. The shift towards electric vehicles has ushered in a transformative period for the automotive industry. Multiple job categories will see increased demand, including installation, maintenance, and production of EV charging infrastructure installation/components. Botswana’s economy is poised to benefit from the jobs created from this partnership as locals have already started work in the vehicle assembly plants.
Botswana is not the first African nation to enter the global EV market.
Governments and private sector players in Africa have been striving to carve out a share in the rapidly growing electric vehicle sector, which is expected to reach USD 21.39 billion by 2027, up from USD 11.94 billion in 2021.
Rwanda, for instance, has been a frontrunner in the transition to EVs, introducing several policy interventions and incentives to woo investors. These have included providing rent-free land for charging stations, reducing electricity tariffs for electric vehicles, and exempting electric cars and spare parts from VAT, import, and excise duties.
Tunisia, for its part, has slashed custom duties on electric vehicle charging equipment to 10 percent while reducing VAT by 7 percent.
Uganda, which produced the first electric bus in Africa in 2016, has also waived import duty on and three-electric wheelers while exempting VAT on all-electric vehicles. The country has also introduced a special electricity tariff on charging stations. Uganda’s private sector, meanwhile, has stepped up its resolve to embrace green mobility through partnerships with the government and entering into the local assemblage of vehicles with little-to-zero tailpipe emissions.
Meanwhile, in Kenya, up to 40 local e-mobility startups have raised USD 52 million in financing, representing the highest figure in the continent.
How does this help in the fight against Climate Change and Global Warming?
Many experts agree that electrifying the transportation sector will be vital in our efforts to stem climate change. Electric vehicles have been around for more than 120 years. Thanks to incredible technological innovation and advances in recent years, the industry, once deemed unprofitable, is now growing at an unprecedented rate.
More African countries should enter the global EV market in the coming years.
With Botswana now officially entering the EV market, it will not be surprising to see other African nations follow suit. This trend will continue to advance the goal of decreasing carbon emissions worldwide while providing other essential opportunities such as employment and income generation for the players involved.