BTA2023 Electric mobility companies across Africa are accelerating local assembly of electric vans and taxis, importing Chinese-made kits while deploying innovative financing models to expand public transport electrification.
In Nigeria, Saglev has begun assembling 18-seater electric passenger vans using imported kits from Chinese automaker Dongfeng Motor Corporation. The Lagos-based firm says it aims to produce up to 2,500 vehicles annually and eventually assemble 17 electric models for Nigeria and other West African markets.
“This is a major step in Nigeria’s transition toward clean, fossil-free transportation,” said Saglev CEO Olu Falaye, describing the van as the first locally assembled electric vehicle of its kind for mass transit in Nigeria and sub-Saharan Africa.
Saglev is a joint venture between Nigeria’s Stallion Group and Chinese automaker Sokon Motor. The company also plans to deploy solar-powered charging stations to address grid reliability challenges that have slowed EV adoption in parts of the continent.
Kenya Moves From Operator to Manufacturer
A similar push is underway in Kenya, where Rideence Africa signed a $2.46 million agreement with Associated Vehicle Assemblers (AVA) to begin assembling electric taxis and minibuses from kits supplied by China’s Jiangsu Joylong Automobile and Beijing Henrey Automobile Technology.
“We are now moving decisively from operator to manufacturer,” said Rideence Africa Managing Director Minnan Yu. “Our aim is to build a Kenya-rooted new-energy mobility company serving Africa.”
According to AVA Managing Director Matt Lloyd, the partnership establishes Kenya’s first dedicated electric vehicle assembly line.
Kenya and Nigeria — two of Africa’s largest economies — are positioning EV assembly as part of broader efforts to reduce fuel import bills, cut emissions and build domestic manufacturing capacity.
Cost Advantage Driving Adoption
Electric vans and minibuses form the backbone of African public transport systems, traditionally dominated by models like the Toyota Hiace. Industry players say cost economics are increasingly favorable.
Charging costs average roughly $3 for up to 200 kilometers, compared with more than $15 in petrol costs for a similar distance.
“The assembly of electric vans is emerging as a strong market segment,” said Dennis Wakaba, secretary-general of the Electric Mobility Association of Kenya. “As local assembly scales up, costs have dropped, attracting more orders.”
Innovative Financing Unlocks Demand
To overcome limited access to credit among transport operators, companies are introducing alternative financing models:
- Pay-as-you-drive
- Lease-to-own
- Per-kilometer usage payments
Rideence leases taxis to drivers for about $18 per day.
BasiGo, which is expanding into electric van assembly, requires operators to pay a deposit plus approximately 20 U.S. cents per kilometer driven.
“These innovative financing models mitigate risks for both assemblers and operators, helping put vehicles on the road faster,” Wakaba said.
Market Still in Early Stages
Despite rapid momentum, electric vehicles remain a small fraction of Africa’s transport fleet. The continent has roughly 30,000 EVs, compared with millions of petrol and diesel-powered vehicles, according to the Africa Mobility Alliance.
Africa produced about 1.1 million vehicles last year, with roughly 90% of output concentrated in Morocco and South Africa.
However, with Ethiopia, South Africa and Kenya expanding local assembly — and Nigeria now entering the market — analysts say the continent may be witnessing the early phase of a regional EV manufacturing ecosystem driven by partnerships with Chinese suppliers.
