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Jevans Nyabiage

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.

Africa has large deposits of cobalt and lithium – key raw materials in electric vehicle batteries – but much of the processing takes place elsewhere. The Democratic Republic of Congo produces almost two-thirds of the world’s cobalt. And most of Zimbabwe’s lithium concentrate is exported to China, which dominates the processing of these minerals.
The United States and some of its Western allies describe production in China that they say exceeds domestic demand as “overcapacity” and warn that low-cost Chinese exports could undercut their manufacturers. The US maintains a 100 per cent tariff on Chinese EVs, while the EU applies additional duties of up to 35.3 per cent.
Beijing disputes the overcapacity claim. In a position paper published last month, China’s Ministry of Commerce said there was no universally accepted definition for excess capacity. It said subsidies, strong exports and trade surpluses did not by themselves prove that production exceeded demand.
The ministry attributed China’s strength in electric vehicles, batteries and solar technology to innovation and economies of scale. The paper said any imbalance should be corrected through market competition rather than tariffs or other trade restrictions.
Saliem Fakir, executive director of the African Climate Foundation, also questioned whether “overcapacity” was an accurate description.
“China’s cleantech sector is highly competitive, and the ‘overcapacity’ mantra is not helpful,” Fakir said.
He noted that many expected Western countries to solve the problems of scale and cost in clean technology, but China took on the role instead.
“We need to take advantage of it rather than bemoan it,” Fakir said.
He also questioned whether China’s EV market was saturated enough to justify claims of overcapacity.
“I was recently in China, and I still believe the EV market is not entirely saturated there,” he said, adding that the “overcapacity mantra may not ring true for EVs”.


African countries want to learn from China’s industrial growth while taking account of their own economic and institutional conditions. According to Fakir, nations like Morocco, Egypt, South Africa, Kenya and Rwanda could eventually move higher up the cleantech value chain.
He said that would require larger markets, closer coordination of industrial policies and regional supply chains supported by the African Continental Free Trade Area.
In July, Chery acquired Nissan’s plant in Rosslyn, South Africa, where it plans to produce plug-in hybrids, battery-electric vehicles and Jetour models.
Chinese carmakers are also expanding local assembly in Egypt. In Morocco, Cobco has started producing battery materials, while Gotion High Tech and other Chinese companies are building plants for batteries and components.


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African companies should take advantage of the situation to reduce costs and gain access to proven technology, according to experts


African companies should take advantage of the situation to reduce costs and gain access to proven technology, according to experts.


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

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}African companies should take advantage of the situation to reduce costs and gain access to proven technology, according to experts

African companies should take advantage of the situation to reduce costs and gain access to proven technology, according to experts