Why China’s EV boom is seen as an ‘unparalleled opportunity’ in Africa

While the US and some European governments view China’s vast production of electric vehicles and green-energy tech as overcapacity, African companies see it as an opportunity to secure EV technology and develop the industry.

China is the global leader of the EV industry – it makes nearly 75 per cent of the world’s electric vehicles and dominates the supply chain.

Its high production has driven down the cost of EVs, batteries and components, which has improved access to technologies that were once beyond the reach of many African markets.

Chinese companies are also investing in assembly plants and battery supply chains in many African countries rather than just exporting finished vehicles.

For African businesses this is a chance to cut costs and gain access to proven technology, according to Gagan Gupta, founder and chairman of Spiro, Africa’s largest electric vehicle- and battery-swapping platform.

“What is perceived as overcapacity in the West, we view as an unparalleled opportunity for cost optimisation and technology access,” Gupta said.