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Why the EAC EV Scoreboard is Mixed

Why the EAC EV Scoreboard is Mixed

Major East African cities such as Kampala, Nairobi and Kigali have introduced a combined fleet of 47 e-buses as they seek to decarbonise, cut costs and improve air quality, but the move has faced financial and technical challenges.
The slow transition to e-buses is due to policy gaps that need to be addressed, according to a recently released report assessing the status of electric bus adoption in 10 African countries.

The African e-Mobility Alliance (AfEMA) has published a report titled “Raising the visibility of electric bus initiatives in Africa to accelerate sustainable mass transport”. His work spanned Cameroon, Egypt, Ethiopia, Kenya, Morocco, Nigeria, Rwanda, Senegal, South Africa and Uganda.

These gaps leave Uganda, which aims to have a 20 percent e-bus fleet by next year, behind its regional peers. Empirical evidence shows that there are only four e-buses operating in Uganda’s public transport system. In Kenya, where five percent of all registered vehicles are expected to be electric by 2025, there are only 24 electric buses, most of which are located in the capital, Nairobi.

Rwanda, which has set itself the goal of converting 25 percent of minibuses and minibuses to electricity by 2030, has reported 19 e-buses.
In the two-wheeler sector, Kigali has banned petrol-engined motorcycles, starting with the suspension of their registration by January next year.
“Infrastructure plays an important role in the adoption of e-buses and this requires support from both sides of the spectrum, i.e. private and public sectors, indicating the need for more partnerships between the private and public sectors,” suggest the researchers.

The few electric buses operating in public transport signals that Uganda is unlikely to meet its targets to increase the fleet of electric buses, especially in cities that continue to struggle with inefficient public transport systems.

Information from the Ministry of Science and Technology describes current public transport vehicles as exhausted, with an average age of more than 16 years at the time of first registration. It adds that these vehicles account for 25 percent of global carbon emissions.

Hence, Uganda’s desire is to fully transition to e-mobility in public transport and motorcycles by 2030 and passenger car sales by 2040.

“Uganda’s heavy reliance on imported outdated petrol and diesel cars is not only causing great damage to the economy, but also poses a significant risk to our socio-economic transformation,
public health and the environment, and Kampala is the second most polluted city in Africa,” says Ms. Monica Musenero, Uganda’s Minister of Science and Technology, in the National e-Mobility Strategy. Without cheap financing options, e-bus maker Kiira Motors Corporation is struggling to attract buyers for its units. Information obtained by this publication indicates that only five e-buses have been sold to public transport operator Tondeka bus services operating in Kampala. Over the years, Uganda has developed a reputation as a country that invests quite generously in the production of e-buses. The country, unlike neighbors Rwanda and Kenya, has failed to attract private investors in an attempt to increase its fleet of e-buses.

Key to the failure is an uncertain tax policy that, despite an annual review, discourages private investment in the e-vehicle space. Ms Jackie Bazimudde, a member of the Uganda Electric Mobility Association, told Saturday Monitor:

“Investors need a predictable tax policy to make investments that should last three to four years as opposed to annual changes.”

In the 2023/2024 financial year, electric vehicles in Uganda were exempted from paying 25 percent import duty. However, the payment for the import of goods has been restored this year.

State actors said it was only motivated by a desire to give wind to the sails of Kiira Motors. In other words, the intention is to increase local production.
The reintroduction of the duty has forced some companies, such as Motorcare, the biggest importer of electric cars, to slow down.

Elsewhere, providers of car charging infrastructure have scaled back planned rollouts due to this policy uncertainty. Not surprisingly, observers say, there are only 83 registered all-electric cars in Uganda. That works out to around less than 0.02 per cent of the country’s fleet, and almost half have been sold to Motorcare.

In comparison, figures from the Uganda Revenue Authority (URA) indicate that Rwanda, with a presumptive regime, reports 512 buses. Rwanda imports buses from China, survey shows
out, as the country has limited domestic assembly capabilities. However, there is great interest in increasing local production. The government provides free internet while traveling on e-buses. Kigali has also remained aggressive in marketing the benefits of e-mobility for both buses and other EV options. Kigali authorities have announced that they will stop registering gasoline-powered motorcycles for public transport in the capital in January 2025, limiting registration to electric motorcycles only. .This is part of the government’s move towards sustainable mobility.

However, an education gap remains as many users and potential adopters are unaware of the cost and benefits of going electric.
Thus, local governments and transport authorities are tasked with improving the public’s understanding of this issue.
“Rwanda is walking the talk,” Mr. John Vianney Kalisa, Coordinator of the Civil Society Coalition on Transport (Ciscot) in Uganda, told this publication.

He added: “Uganda has good policies but poor implementation.”
In addition, Kenya is pushing for at least five percent of all registered vehicles to be electric by 2025. However, data from a report on the status of electric buses (e-buses) in Africa, published last month, shows that the country has a poor fleet. e-buses used in mass public transport, mainly in Nairobi.

Prices range from $155,000 (Sh567 million) to $201,506 (Sh735 million), according to the State of the Electric Bus report. Observers say that this is an exorbitant amount. A bus with an internal combustion engine, for example, costs between $23,250 (85 million shs) and 38,750 (141 million shs).
“Kenya is becoming a leader. in East Africa, with strong policy support and several ongoing projects, including an innovative financing scheme targeting private sector buses,” the survey reveals.

The government’s desire to move to e-buses and electric vehicles more broadly, as well as established Kenyan manufacturers and assemblers of e-buses, means the country is well-positioned to accelerate
electrification of the bus sector. However, Kenya has not standardized its charging infrastructure. Concentration
The same in the capital, Nairobi, limits the possibility of expanding access to the e-bus. Two private e-bus manufacturers, BasiGo and Roam, have taken positions in Kenya.

“There is a policy gap in a key area,” the survey notes, adding: “Our surveys show that the public is often uncertain, if not downright skeptical, about electric buses. Government policy aimed at solving this problem needs improvement. Kenya, for example, has launched a program to make electric vehicles more attractive, and Uganda’s comprehensive e-mobility strategy sees vehicle electrification as a great opportunity for the entire nation.”

Respond
Uganda’s policy as a country goes beyond the changes mandated by the national e-vehicle policy. Ms Irene Namuiga, a road safety engineer and transport planner at the Kampala Metropolitan City Authority (KCCA), said the policy should facilitate the rapid adoption of electric vehicles. because they are not motivated enough.

“Not only buses are expensive, but also electric cars. Fuel-powered vehicle policies make it attractive to own fuel-powered vehicles,” she told this publication, advising that the government should also develop stronger regulatory measures to discourage the use of fuel-powered engines, and push for the formalization of public transport in the Ugandan capital to attract investment in a fleet of electric buses.