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Lack of Local Investment in African EV Firms Threatens the Growth of the Continent’s Green Transportation Sector

Demand among individuals and companies for e-buses, electric two-wheelers and three-wheelers is surging across the continent, say industry insiders and analysts. However, limited financing has fallen well short of the levels needed to keep up with that demand, making it hard for companies to produce vehicles and keeping the cost of EVs high for consumers. As much as $9 billion in financing may be required by 2030 to grow a sustainable market for electric two-wheelers in Kenya, Nigeria, Uganda, Rwanda and Ethiopia, according to a report by the Shell Foundation charity. Local banks and investors have been slow to back the EV sector for reasons including low risk appetite, lack of information and the nascent stage of the sector in Africa.