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  • 🚁 Heli view: Why corporate fleets are key to electric mobility in Africa

🚁 Heli view: Why corporate fleets are key to electric mobility in Africa


EV sales are accelerating on the continent but still far behind global uptake. High acquisition costs stand in the way of the undoubted environmental benefits.

Solution needed: The single biggest lever to boost EV growth and reach sustainability is to focus on converting entire corporate fleets of vehicles. 

  • African consumers buy lots of cars every year, but most are second hand, usually imported from Europe and Asia – and far from electric. 

Business rules: The corporate sector dominates the African market for new cars in a way that is unknown in more developed economies. 

  • Commercial vehicles made up 86% of new car sales in Kenya last year.

  • Corporate buyers are disproportionately cash-rich in Africa. 

  • So that's where the buying power to transition the market can be found. 

Government first: African politicians have become green champions in recent years, while sitting on the largest vehicle budgets on the continent. 

  • Kenya's leaders spent $1.3 billion on cars a year (1.1% of GDP!), making them the country’s biggest buyers. 

  • The UN is another case, acquiring thousands of white Toyota Landcruisers at a time.

  • Foreign missions also represent a significant part of the high-end car market.

The rest: Private sector fleets account for much of the remaining market. 

  • Logistics and bus companies operate large fleets, given the poverty of rail transport.

  • Giant oil and mining companies perpetually invest vast sums in new vehicles.

  • Telcos operate big tanker fleets to fuel mobile phone towers running on generators.

  • Nonprofits are among Africa’s largest and best-motorised organisations.

Key question: How many fleet vehicles are there in Africa?

  • Conservative estimates suggest there are 10 to 12 million across the continent. 

  • South Africa had 2.3 million last year and is expected to reach 3.8 million in 2028.

By comparison: Managing and converting fleets is big business in developed countries. 

  • The global fleet management market is valued at $8 billion and growing 10% a year.

  • 54% of new US cars are in fleets, compared to 25% in Asia and 18% in Europe.

  • Up to 65% of fleet growth in developed economies is in electric vehicles. 

The key: Relatively few (and often highly efficient) managers make the purchasing decisions on fleet conversions. Offering them the right incentives would be doable.

  • Replacing private fuel cars may take a generation. But fleets turn over much faster. 

  • In developed countries, fleet vehicles are replaced on average every three years. 

Good news: Transitioning entire fleets to EVs is starting to happen in Africa, even at government level.

  • Kenya’s president this month announced the purchase of 1,000 electric vehicles for officials and police.

  • Ethiopia imposed a ban on fossil fuel car imports for foreign diplomatic missions.

Corporate headstart: Individual companies still have the largest impact though. 

  • Shift EV, a startup, is converting half the delivery fleet of Danone Egypt. 

  • DHL, the logistics firm, is partnering with Volkswagen to go electric in South Africa. 

  • Fleet manager IZI is beginning the electrification of buses in Rwanda’s capital.

Critical support: Startups in Africa’s mobility space play a crucial role in fleet conversions. 

  • South Africa’s GoMetro is making major innovations in fleet data management and electric vehicle transitions. 

  • It targets to decarbonise South Africa's public transport system, a fleet of approximately 250,000 vehicles. 

  • The electric motorbike fleet market, which has even more units than cars, is moving fast too, driven by startups such as Ampersand. 

Even faster: Policymakers are now asking how to force an even quicker pace of fleet conversions. Some are opting for targeted import duty reductions. 

  • Tunisia, Uganda and Kenya have recently passed rules aimed at lowering or temporarily eliminating taxes or tariffs on certain EVs. 

Ultimate aim: Converting corporate fleets could be a springboard for private EV purchases. 

  • With guaranteed corporate demand, more charging stations would be built, which in turn would attract more private EV buyers.