Tanzania is quickly becoming a leader in e-mobility in East Africa, with over 5,000 electric vehicles (EVs) currently in the country, according to a recent report titled Africa E-Mobility Alliance. However, despite this progress, the industry still faces a number of challenges, including high import taxes, unclear government policies, limited funding, a shortage of technicians, low electricity grid access, and limited consumer knowledge.
Government Support and Strategy Development
The Tanzanian government is taking steps to address these challenges and create an enabling environment for e-mobility investment. Energy Permanent Secretary Felchesmi Mramba stated that the government is committed to ensuring there is enough electricity available for EVs and is open to partnering with the private sector to establish charging centers. The government has also engaged a consultant to develop a strategy that covers the use of EVs and vehicles powered by compressed natural gas, among other things. The reduction of import taxes was identified as having the greatest potential to boost the private sector, and 70 percent of respondents ranked this as their first or second highest policy priority.
Limited Funding and Access to Grid Electricity
Despite the challenges, the report highlights the potential of the e-mobility industry in Tanzania, particularly in urban areas where grid access is highest and vehicle density is greatest. To realize this potential, however, more funding is needed. Currently, the e-mobility sector in Tanzania has raised just around $1 million, which is significantly lower than the $5 million raised in Uganda and the $50 million in Kenya. The report suggests that institutions can provide support to the industry by offering grant funding, educational programs for the workforce, publishing policy papers, convening workshops and roundtables, and introducing investors. In addition, rural areas may require a combination of approaches to provide electricity for EVs, including grid extension and mini grids. Currently, only around 40 percent of Tanzanians have access to grid electricity, but the government has set an ambitious goal to electrify 75 percent of the country by 2025 as part of its Vision 2025.
Overall, the report shows that e-mobility is a young industry in Tanzania, but with government support and strategic investments, it has significant potential for growth and impact. Lower import taxes, clearer government policies, increased funding, and improved access to electricity could all help to accelerate the growth of e-mobility in Tanzania and pave the way for a cleaner and more efficient transportation system in the country.
