Analysis of the African electric two-wheeler market - opportunities and challenges

Analysis of the African electric two-wheeler market: opportunities and challenges

The global energy transition and the development of sustainable transportation are driving significant changes in African transportation. Fuel-powered motorcycles, once dominant in the market, are gradually being replaced by electric two-wheelers due to high fuel costs, severe pollution, and safety concerns.

Electric vehicles, with their affordability, environmental friendliness, and government support, are rapidly gaining popularity in several African countries. Kenya, Rwanda, and Ghana, in particular, are experiencing rapid growth in electric vehicles and battery-swapping technology (find the top 10 battery swapping company in Africa), attracting numerous businesses and investors.

This article will delve into the current state of the African electric two-wheeler market, exploring its advantages, latest trends, challenges, and future direction.

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Market background: The shift from fuel motorcycles to electric two-wheelers

A “revolution” in transportation is quietly unfolding on the streets of African cities, with electric two-wheelers at its heart. For a long time, fuel-powered motorcycles were a crucial part of African transportation, handling daily commutes, cargo transport, and ride-sharing. However, with increasing economic and environmental pressures, the drawbacks of fuel motorcycles have become apparent, pushing the market towards electrification.

  • High Fuel Costs: Many African countries rely on oil imports, leading to fluctuating fuel prices and increasing transportation costs for motorcycle users.
  • Environmental Pollution: The exhaust emissions from fuel motorcycles significantly contribute to urban air pollution, impacting residents’ health.
  • Safety Hazards: Frequent motorcycle accidents pose a significant challenge to road safety in Africa.

Against this backdrop, electric two-wheelers, with their economic, environmental, and safety advantages, are becoming an ideal alternative to fuel motorcycles.

Fuel motorcycles vs electric two-wheelers

Core advantages of electric two-wheelers

Economy: Significantly reduced transportation costs

Taking the Kenyan market as an example, a motorcycle’s fuel consumption is approximately 2.5 liters per 100 kilometers, while an electric vehicle consumes 2 kilowatt-hours (kWh) per 100 kilometers. Assuming the current fuel price is $1.5/liter and the electricity price is $0.2/kWh, and the rider travels 1000 kilometers per month:

Fuel Motorcycle Monthly Fuel Cost: 2.5 liters/100km × 1000km × $1.5/liter = $37.5
Electric Motorcycle Monthly Electricity Cost: 2 kWh/100km × 1000km × $0.2/kWh = $4
Monthly Savings: $37.5 – $4 = $33.5
Annual Savings: $33.5 × 12 months = $402

In Africa, $402 can buy a mid-range smartphone, a used bicycle, or even support a family for a month. The low operating cost of electric two-wheelers significantly improves users’ economic efficiency.

Advantages of electric two-wheelers

Environmental friendliness: contributing to sustainable development

Electric two-wheelers achieve zero emissions, significantly reducing carbon emissions and air pollution compared to fuel motorcycles. This aligns with the sustainable development goals promoted by many African governments, such as encouraging green transportation and reducing oil dependence.

Policy support: government promotion of electrification

To promote the development of electric transportation, several African governments have implemented supportive policies, such as:

  • Purchase subsidies
  • Exemption from certain taxes
  • Construction of charging infrastructure
  • Encouragement of investment in the electric vehicle industry

These policies have accelerated the promotion and popularization of electric two-wheelers.

Safety and reliability: reducing road safety risks

Electric vehicles, compared to traditional motorcycles, have slower speeds, simpler operation, and reduced accident risk associated with high-speed driving. Furthermore, electric vehicles often feature stable braking systems and intelligent management systems, enhancing driving safety.

Latest development trends in the electric two-wheeler market

Trends in the African electric two-wheeler market

The rise of bolt's electric two-wheeler fleet in Kenya

Kenyan ride-hailing company Bolt announced that its electric two-wheeler fleet has exceeded 500 vehicles and plans to expand to 1500 by the end of 2025. This growth is due to Bolt’s collaboration with fintech company M-KOPA and electric vehicle manufacturers Roam Electric and Ampersand, enabling drivers to lease electric motorcycles at more affordable prices.

This initiative also tested battery-swapping infrastructure in Nairobi (knowing motorcycle battery replacement technology), highlighting the need to increase battery capacity and the number of charging stations. Bolt’s success demonstrates the rapid growth of the electric two-wheeler market and its potential future role.

The popularization of battery-swapping technology

In Africa, where charging infrastructure is not yet fully developed, battery-swapping technology has become a more practical solution. For example:

  • Spiro has established over 600 battery-swapping stations (explore the top 10 battery swapping station manufacturers in China) in several African countries, serving 12,000 users and completing 7 million battery swaps.
  • Kofa has established 12 battery-swapping stations in Ghana and plans to expand to 80 by 2024, expecting to complete 100,000 battery swaps per month.

This model effectively addresses the issue of long charging times, making electric vehicle use more convenient.

Electric motorcycles suitable for the African market

The specially designed electric motorcycle for African market - TYCORUN E67

To support the operation of battery-swapping systems, the African market requires specially designed electric motorcycles. For example:

TYCORUN has launched an electric motorcycle – E67. This motorcycle is equipped with a 5kW mid-mounted motor and a peak torque of 280Nm, and can reach a top speed of 95 km/h. Its swappable batteries have a range of up to 100 kilometers, and each motorcycle is equipped with two batteries, with a range of up to 200 kilometers. The good news is that it takes less than 30 seconds to replace the battery and restore a range of more than 100 kilometers.

Spiro has launched the Commando motorcycle to match its battery swap system. The motorcycle also has two batteries, a range of 75 kilometers, and a 6.5kW electric motor with a maximum speed of 80 km/h.

These models are specifically designed for the African market, suitable for motorcycle taxi services, meeting the needs of high-frequency use and long range.

Challenges and future outlook of the African electric two-wheeler market

Battery swapping models effectively addresses the issue of long charging times
  • Charging and battery-swapping infrastructure still needs improvement

Although battery-swapping is being promoted, the coverage of charging stations and battery-swapping stations remains limited, hindering the widespread adoption of electric vehicles.

  • User awareness and acceptance

Some users are still accustomed to fuel motorcycles and have doubts about the performance, range, and durability of electric vehicles. Market education and user experience activities are needed to increase user confidence in electric vehicles.

  • Financing and business model exploration

Currently, companies like Bolt and Spiro are reducing user purchase costs through leasing or installment payment models, but future exploration of more business models is needed to make electric motorcycles more affordable for a wider population.

  • Policy stability

Policies in some African countries may be uncertain, such as the sustainability of subsidy policies and tariff adjustments, which could affect market development.

Conclusion

The frequent occurrence of thermal runaway accidents of lithium-ion batteries is shocking. In order to avoid lithium-ion battery safety accidents, improve the safety of lithium-ion batteries, and avoid the occurrence of thermal runaway, it is necessary to take a multi-pronged approach from the battery formula design, structural design and thermal management design of battery packs to jointly improve the thermal stability of lithium-ion batteries and reduce the possibility of thermal runaway.

Who we are

TYCORUN is committed to providing global users with modular battery-swapping systems, high-performance electric motorcycles, and high-energy lithium-ion battery solutions. We use “30-second ultra-fast battery swapping” technology as our core, building a complete ecosystem covering urban short-distance delivery, personal commuting, and green energy services, driving the upgrading of urban transportation towards zero-carbon and high efficiency.

As a practitioner of new energy infrastructure, TYCORUN believes that “Battery as a Service (BaaS)” will become the core power model for future transportation. We empower shared mobility, urban logistics, and personal commuting scenarios with safe, compatible, and sustainable technologies, making every energy replenishment more efficient and every kilometer traveled more free.

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