Electric vehicles (EVs) have been seen as a potential solution to the environmental challenges faced by

many African countries. With the rise in air pollution, climate change, and dependence on fossil fuels,
the shift toward electric mobility has been seen as a promising alternative. However, the current
inflation and devaluation of currencies in many African countries have presented new challenges for the
electric vehicle sector.

According to the World Bank, inflation in Sub-Saharan Africa is expected to rise to 5.2% in 2021, up from
3.3% in 2020. This rise in inflation is attributed to the impact of the COVID-19 pandemic and the
measures taken by governments to control its spread, such as lockdowns and border closures. These
measures have disrupted supply chains, leading to an increase in the cost of production and a decrease
in economic activity, which have contributed to the rise in inflation.

The devaluation of currencies has also been a significant challenge for the electric vehicle sector in
Africa. For example, the Nigerian naira has depreciated by over 90% against the US dollar since 2016.
This devaluation has made it more expensive for local manufacturers to import raw materials needed
for the production of electric vehicles. As a result, the cost of producing electric vehicles has increased,
making them more expensive for consumers.

The increase in the cost of production has had an impact on the price of electric vehicles. According to a
report by the International Renewable Energy Agency (IRENA), the cost of electric vehicles in Sub-
Saharan Africa is expected to be higher than that of traditional gasoline-powered vehicles until 2030.
This is due to the high cost of importing components needed for the production of electric vehicles and
the lack of local production facilities.

The rise in the cost of electric vehicles has made them less affordable for many Africans. According to a
report by the African Development Bank (AfDB), the average price of electric vehicles in Africa is
between $30,000 and $40,000. This is significantly higher than the average price of traditional gasoline-
powered vehicles, which is between $5,000 and $15,000. As a result, the adoption of electric vehicles in
Africa has been slow, with only a few countries having significant numbers of electric vehicles on their
roads.

The slow adoption of electric vehicles in Africa is also reflected in the sales figures. According to a report
by the International Energy Agency (IEA), Africa accounted for only 0.1% of global electric vehicle sales in
2019, with South Africa being the largest market for electric vehicles on the continent.

The rise in the cost of charging electric vehicles has also been a significant challenge for the electric
vehicle sector in Africa. According to a report by IRENA, the cost of charging electric vehicles in Africa is
expected to be higher than that of traditional gasoline-powered vehicles until 2030. This is due to the
high cost of electricity in some African countries, which is also affected by inflation and the devaluation
of currencies.

In conclusion, the current inflation and devaluation of currencies in many African countries have
presented significant challenges for the electric vehicle sector. The rise in the cost of production,
decrease in purchasing power, and reduction in demand have impacted the sector. Furthermore, the
depreciation of currencies affects the cost of charging electric vehicles and the adoption of renewable
energy sources. The electric vehicle sector needs to adopt strategies to mitigate the effects of inflation
on their production, such as sourcing raw materials locally, increasing investment in renewable energy
sources, and partnering with the government to provide incentives that make electric vehicles more
affordable for consumers.