‘Greening’ Transportation: EVs and Ghana’s Sustainable Mobility Push

In the face of the growing threat of climate change, the quest for sustainable transportation makes electric vehicles (EVs) an appealing alternative to internal combustion engine (ICE) cars. Ghana has one of the highest EV adoption rates, and the market is dominated by Chinese brands.

The traction Chinese EVs are gaining in Ghana can be partly attributed to the relatively cheaper costs of their vehicles. But they have also forged partnerships with leading local companies, such as SolarTaxi and Kofa. As a result, SolarTaxi imports the parts to assemble electric two- and three-wheelers, buses, and compact cars from Chinese EV firms such as BYD, Cherry, Dongfeng, among others. Kofa, in partnership with TAILG Group, supplies the Jidi motorcycle to the Ghanaian market.

Despite the hope-filled future of EV adoption in Ghana, significant challenges are beleaguering its progress. While environmental concerns back the push for EV adoption, it is hardly a priority for the average Ghanaian buyer. Recent research reveals that the most critical considerations for Ghanaians when deciding to buy an EV are the availability of charging infrastructure and servicing shops. It is these infrastructure concerns that must be met if Ghana’s EV market is to reach its potential.  

The state of EV charging and servicing stations

As of late 2023, Ghana had approximately 17,000 EVs on the roads, including around 1,000 four-wheeler electric vehicles. The primary charging source for most EV users is home-installed chargers, supplemented by the limited public charging stations. Despite the government’s plan to establish 1,000 charging stations by 2028, a 2024 UNDP report revealed that Ghana had a meagre total of seven public charging stations, all located in Accra. Recently, Charge Express, a local EV firm, has established a charging station with four additional outlets, also in Accra. Even within the capital, the positioning of these charging stations is not distributed widely enough to put them within easy access for users scattered in Accra’s neighbourhoods. As a result, the main charging source for most EV users is home-installed chargers, which limits the vehicles’ range and therefore utility.  

The present state of public charging stations makes travel beyond Accra virtually impossible. The current EV user in Ghana can at best commute within the capital. The majority of EVs on Ghana’s roads are two- and three-wheelers, which are primarily used for delivery services and for carrying passengers and goods. For efficiency in delivering such services, the riders will require easy access to public charging or battery swap stations.

Despite being slightly more expensive than home charging, public charging is essential for commercial vehicles and long trips, or for potential EV owners who cannot install home chargers. Additionally, the high cost of electricity for domestic and commercial households in developing countries such as Ghana could make public charging stations a relatively affordable option due to economies of scale, where the infrastructure costs are spread over many users and charging sessions, resulting in lower per-unit charging cost. Especially when provided by blended financing schemes, including public, concessionaire, and public-private partnerships.

Currently, Ghana struggles with intermittent electricity supply, particularly outside major cities. While solar-based systems are a promising power source for EVs, their scalability remains uncertain without government policy support and long-term investment. Consequently, government policies that waive the cost involved in EV adoption can boost the transition to EVs. Though Ghana’s Ministry of Finance proposed in its 2024 budget to grant import exemptions for the next 8 years for the local assembly of EVs and the importation of electric buses for commercial public transportation, the policy has yet to be implemented.

The servicing market lags even further behind. EV servicing and maintenance are currently primarily provided by EV dealers to customers who purchase their vehicles. This makes servicing and maintenance expensive and inconvenient because only a few servicing shops have technicians skilled enough to handle some specialised repairs. It also presents a challenge if a car breaks down at the side of the road.

The way forward

It is imperative for EV firms to recognise the significant hurdles that charging and servicing pose to their market capture and growth in Ghana. Despite the government’s plan to establish charging stations nationwide, the private sector may be better suited to championing the dissemination of such charging stations. The more Ghanaians encounter public charging and service stations in their daily commutes, the more likely they are to embrace EVs as an alternative to fossil fuel-powered vehicles. It is in the companies’ interests to help this rollout.

Establishing modern public charging stations is cost-intensive, with potentially lengthy payback periods, considering that Ghana is still in the early stages of EV adoption. The challenge, however, presents an opportunity for firms involved in establishing public charging stations to penetrate and capture the nascent EV market in Ghana.

Companies and the government should be looking to expand the domestic base of technical knowledge to support the nationwide expansion of service stations and the uptake of EVs. Perhaps it is time for technical and vocational institutes to partner with EV manufacturers in enrolling technical and professional training, particularly in EV servicing and maintenance. Such training may equip technicians to establish independent EV servicing centres to help alleviate the existing servicing anxiety among EV users and potential users. 

Conclusion

Compared to other African states, Ghana has chalked significant improvements in its EV adoption mandate. Despite the progress, the lack of adequate public charging and servicing stations appears to be a formidable hindrance to the nation’s potential progress in embracing a greener form of transportation. Policies and strategic efforts that will promote the establishment of more public charging and servicing stations might sway public concerns and quicken the rate of EV adoption that the country seeks to achieve.