The State of Electric Mobility in Tanzania
Lessons from E-Motion, Greenfoot, Kaypee Motors, Linkall, Sarafu, and TRI
I. Introduction
Tanzania isn't a country usually mentioned when we hear about electric vehicles (EVs). However, the past seven years have marked a turning point for our transportation sector. This period has seen the arrival of not only basic EVs—such as Linkall's e-bikes in 2018—but also advanced models like electric trains for the US$10 billion standard gauge railway (SGR) under construction.
Tom Courtright, Research Director of the Africa E-Mobility Alliance (AfEMA), revealed in February this year that Tanzania’s personal electric scooter market has attracted new international players like Revoo and Yadea. These companies sell two-wheelers for between Sh1.5 million and Sh3.2 million, which is comparable to the price of bikes powered by combustion engines.
"Yet Tanzanian e-mobility companies have raised only a little over US$1 million so far," a March 2023 AfEMA report states. That is "compared to over US$5 million in Uganda and US$50 million in Kenya."
Electricity is undeniably cost-effective in the long run for consumers. A key advantage for Linkall and its competitors, according to Mr. Courtright, is that the government classifies e-scooters as bicycles. This exempts them from the 10% excise duty applied to e-motorcycles and reduces their import duty from 25% to 10%.
In the commercial e-mobility segment, Tanzania has several players. From TRI's three-wheelers to Greenfoot's cargo bike network, these solutions address various transportation needs. Looking ahead, business-to-business (B2B) e-commerce platforms like Sarafu are exploring the possibility of using electric vans for deliveries, aiming to increase efficiency and cost savings.
Tanzania has about 10 companies that import, sell, retrofit, service, or charge EVs, as per AfEMA. Only two of these companies claim to have sold more than a thousand vehicles, while the remainder have each deployed less than thirty.
In sections III to VII, we’ll break down each important market aspect for a more in-depth look. But, before that, Section II will provide some historical information.
Read on.
II. Background
"Motorists in Tanzania will face more pain as fuel prices rise," writes Bethsheba Wambura in an April 3, 2024, story for The Citizen, following a statement from the Energy and Water Utilities Regulatory Authority (EWURA). The East African newspaper also observed that prices in Dar es Salaam rose for four months in a row between June and November 2023. Petrol now costs Sh3257, a 5.6% increase over the Sh3084 EWURA set in January.
Boda bodas, which now make up at least 90% of motorcycles in Tanzania, play a key role in moving passengers and goods in cities, towns, and villages
In contrast, Tanzania's electricity prices have seen minimal fluctuations. The average price per kilowatt-hour (kWh) only increased slightly from Sh214 in 2021 to Sh216 in 2022, and then to Sh229.59 in 2023. This translates to a much smaller cost increase per unit of energy used compared to the recent petrol price hike. Indeed, at our family house last week, Sh9000 purchased 73.7 KWh (uniti za umeme). That is enough to charge an ordinary three-wheeler (10.8 kWh combined battery capacity) up to seven times, or for a full work week.
A World Health Organization (WHO) report found that over 50,000 tuktuks were registered in Tanzania in 2014. And as of 2018, the country had a total of 1.28 million two- and three-wheelers, representing 59% of the nation's registered vehicles. They fill gaps left by insufficient urban planning and a deteriorating public transport system. Boda boda also provides an essential connection between main roads, residential areas, and the bus rapid transit system (BRT) in Dar. Yet, they contribute heavily to air pollution and noise (Goletz et al., 2021).
Tanzanian Tuk-tuk drivers are open to going electric, but they require features that match their current petrol-powered rides. This includes similar top speed, passenger capacity, and sufficient driving range on a single charge.
As a result, electric three-wheelers (E3Ws) have the potential to dominate Tanzanian roadways while presenting huge environmental benefits. Only if founders and investors pay attention to adoption obstacles. By replacing older vehicles, E3Ws can contribute to reduced noise pollution and a decrease in toxic fume emissions, not just in Tanzania's major cities (6) but also in its many towns (over 28).
III. Personal Public Transport
TRI’s new flagship electric three-wheeler, the E2, has a range of over 100km on a single charge, which is okay for getting around the city. It has a top speed of 55 km/h and takes about 2.5 hours to fully charge using the onboard charger. Plus, it's built to handle Tanzania's roads. Its E2 is priced competitively with standard gasoline Bajajis, costing around US$3,500 (excluding VAT). However, lower upfront and usage costs are insufficient to drive adoption.
A study by Germany's Institute for Transport Research highlights the potential of strategically situated "opportunity charging spots" (Goletz et al., 2021). Drivers deserve integrated charging stations at moto-taxi stands that allow them to swiftly recharge during breaks. TRI's planned construction of such infrastructure maintains its position as a forerunner in Tanzania's e-mobility scene.
IV. E-Mobility As a Service (eMaaS)
International organizations like UN-Habitat and Siemens have supported Greenfoot with grants to develop innovative e-mobility solutions within Tanzania. This funding prioritizes local businesses and targets common vehicle types (like e-bajajis), boosting the country's electric transportation sector.
While these grants are a positive start, Greenfoot Africa (and other similar companies) require significantly more financial support to fully realize their potential and bring about large-scale transformation. AfEMA recommends that donors (and, I think, investors too) should increase funding for small-scale EV fleet development, with amounts ranging from US$50,000 to US$250,000 to support business model demonstrations and investment readiness.
IV. E-commerce + E-mobility
TRA’s high import taxes on four-wheel vehicles often reach 100% of the purchase value. This includes charges on both fully built vehicles and even parts imported for assembly. As a result, EVs are much less affordable for many businesses and citizens.
Tanzania's relatively low electricity rates (~US$0.01 per kWh) compared to Kenya (~US$0.03) and Uganda (US$0.1) are an advantage when considering the cost of running electric vehicles. This, together with fuel price fluctuations, could mean significant long-term savings for e-commerce (and logistics) companies that switch to electric.
That cost-effectiveness demonstrates the importance of reducing import taxes. Tanzania's lack of heavy fuel subsidies and volatile fossil fuel prices make it a prime candidate for EV adoption, potentially leading to notable energy savings for EV owners and operators (AfEMA 2023). In fact, e-bikes power Piki's entire fleet in Dar es Salaam, delivering groceries and food from restaurants to end consumers.
Firas Ahmad argues that fleet vehicles (i.e., delivery trucks and mini-vans) offer the most promising initial use case for EVs. Why? 1) Fleets operate on predictable routes within cities, allowing for centralized charging stations. 2) The more an EV is driven, the more operational savings it generates compared to fuel-powered vehicles. This is especially true for trucks and mini-vans in heavy traffic, where idling burns fuel. 3) As a major cost for transport companies in Sub-Saharan Africa, switching to EVs eliminates this problem.
If, in the long run, Sarafu (or anyone else!) focuses on fleet clients, it could find a viable entry point in a challenging market.
IV. Clean Public Transport Needs
Even though some local players, such as E-motion Africa, have shown interest in retrofitting ICE (internal combustion engine) buses, there are currently no known electric bus providers in Tanzania, unlike in neighboring countries, where BasiGo has been managing BYD e-buses and Kira Motors in Uganda.
Even if initially limited to shorter routes, converting gas-powered vehicles to e-buses offers a transition pathway. It partially addresses the upfront importation cost problem (for public and private investors in the public transport industry).
Fortunately, Tanzania is regaining its power grid reliability. The Julius Nyerere Hydropower Plant (JNHPP) alone has added 2,115 megawatts (MW) and an estimated annual power generation capacity of 5,920 gigawatt hours (GWh).
V. Local EV Manufacturing
Kaypee Motors is a Dar-based producer of consumer electric cars. I got a chance to film their KPA72 during Innovation Week Tanzania (IWTz) 2022 and speak to its general manager shortly after witnessing a test ride of what was and perhaps still is the only EV model in its category in Tanzania.
While a retrofitted E-Motion Africa vehicle can cover 120–250 km, depending on the terrain, the KPA72 travels 48–64 kilometers on tarmac even after charging for 4-6 hours.
Kaypee has the potential to expand beyond Tanzania since they are in the best position to tailor their designs to the specific needs of the African market, such as handling high temperatures, dust, and intensive usage patterns. Why? The predominant business model of almost every other player relies on the importation of fully-made vehicles with a few tweaks.
RoboTech Labs, based in Tanga, is another player in this category with its hand-made three-wheelers, co-designed with the Tanzania Open Innovation Organization (TOIO) under Shaukatali Hussein.
VI. Conclusion
The Tanzania E-Mobility Association (TAEMA) will play a crucial role in driving the sector forward. Especially since, in the country, no startup is operating electric buses, vans, or passenger cars. Only scooters, motorcycles, pickups, and safari vehicles are prevalent. In addition, most Asian manufacturers have not adapted their vehicles to Africa's—let alone Tanzania’s context of—intensive usage, high temperatures, and significant dust.
Check out the following resources for further reading:
Access to Energy Institute & Greenfoot. (2021). E-Mobility in Tanzania: Business and technical insights into productive use cases.
Ahmad, F. (2023, December 28). How to introduce electric vehicles in sub-Saharan Africa. In Depth on Africa Fintech.
Mathias, I. (2022, August 10). New Batteries: The Future of Electric Vehicles. Atoms & Bits.
Mathias, I. (2022, August 18). Africa's roadmap to mass adoption of electric vehicles. Atoms & Bits.