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Singapore media: Tanzania promotes energy transformation, welcomes Chinese electric vehicle imports and local production

2024-07-16

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Source: Global Times

Singapore Asia News Network website article on July 15, original title: Tanzania promotes energy transformation, welcomes Chinese electric vehicle imports and local production China is quietly promoting an electric vehicle revolution in many parts of Africa, creating local jobs and supporting energy transition. Many African governments not only welcome imports of electric vehicles from China, but also welcome Chinese electric vehicle manufacturers to produce them in their countries. Experts expect more Chinese electric vehicles to hit African roads. At the same time, after suffering tariffs from the United States and the European Union, Chinese electric vehicle brands are looking for new markets to expand their business.

Dar es Salaam, Tanzania, is being transformed by the surge in electric vehicles. The gasoline-powered motorcycles and three-wheelers that currently fill the city's roads are being rapidly replaced by electric motorcycles. Food delivery rider Zakiya Tabit made the upgrade a few years ago. "I no longer have to pay high fuel costs," she said. "It's a great means of transportation that helps young people like me achieve their goals in life."

In 2021, Piki, the food delivery company where Tabit works, imported 32 electric scooters from China. The company said the move brought more stable profit margins.

Driven by the urgent need to reduce air pollution and other factors, Tanzania has become one of the first countries in East Africa to switch to electric vehicles. Currently, there are more than 5,000 electric vehicles on Tanzania's roads, which is not only the highest in the region, but is expected to increase further.

At least 10 companies have entered Tanzania’s electric vehicle market in the past few years, including electric vehicle startup Tri, which imports three-wheeler parts from China and assembles them at its local factory.

However, despite duty-free incentives for relevant imported goods, Tanzania's electric vehicle industry still faces other barriers to growth, including limited funding, a shortage of skilled personnel and low consumer awareness.

In Africa, electric vehicle trade is dominated by imports of parts from China. However, Chinese vehicle manufacturers are also increasingly interested in establishing partnerships on the African continent. Observers say this not only creates local jobs, but also encourages African countries to build domestic electric vehicle industries. (Author: Isaac Lukando, translated by Wang Huicong)