In a significant stride towards advancing Rwanda’s automotive industry, a prominent Chinese company has announced the establishment of an electric vehicle (EV) assembly plant in the country. This monumental move underscores China’s growing influence in Africa and promises to transform Rw Contact online >>
In a significant stride towards advancing Rwanda’s automotive industry, a prominent Chinese company has announced the establishment of an electric vehicle (EV) assembly plant in the country. This monumental move underscores China’s growing influence in Africa and promises to transform Rwanda’s transportation landscape and foster economic growth. With a commitment to sustainability and technological innovation, this venture is poised to reshape the future of mobility in Rwanda and beyond.
The Chinese company’s and Rwanda’s partnership to set up an EV assembly plant represents a bridge between nations with a shared vision for automotive innovation. This collaboration underscores China’s commitment to contributing its expertise in electric mobility to the African continent. By choosing Rwanda as the host for this venture, both countries open the door to cross-cultural knowledge exchange and economic development.
At the heart of this undertaking lies the aim to empower Rwanda’s electric future. Establishing an EV assembly plant marks a significant milestone toward creating a sustainable transportation ecosystem. This venture not only introduces cleaner and more efficient transportation options but also drives local employment opportunities, enhances skill development, and promotes a greener way of life.
The establishment of the EV assembly plant not only serves Rwanda’s transportation needs but also presents a strategic economic impetus. It signals a deepening of trade relations between China and Rwanda and the potential for future cooperation on technological and industrial projects. This initiative could also pave the way for increased foreign investment, technology transfer, and the growth of local EV manufacturing and maintenance industries.
With the introduction of the EV assembly plant, Rwanda takes a momentous step towards eco-friendly mobility. Electric vehicles are recognized for significantly lower carbon emissions than traditional internal combustion engines. By embracing EVs, Rwanda can work towards achieving its environmental goals, reducing its carbon footprint, and becoming a role model for sustainable transportation solutions in Africa.
The Chinese company’s electric vehicle assembly plant establishment marks a pivotal moment in Rwanda’s journey toward sustainable transportation and economic prosperity. This collaboration transcends borders, combining China’s expertise in EV technology with Rwanda’s commitment to a greener future. As this initiative gains momentum, it has the potential to set a precedent for cross-border partnerships that drive innovation and environmental consciousness in the automotive industry.
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Amid a growing demand to electrify Rwanda''s public transport, companies are rushing into the sector to import electric vehicles (EVs) and related services from China.
IZI Electric is one of them. In early April, it delivered its first batch of five electric buses made by China''s automaker Zhongtong, each with a capacity of 60 passengers and equipped with a robust 130 kwh battery powerful enough to run on hilly roads.
"These buses were selected because they are suitable for Kigali''s landscape and road conditions, and will ensure reliable and efficient public transportation throughout the city," said Alex Wilson, CEO of IZI.
Besides, IZI has introduced the first fast charging station in Rwanda, also imported from China. Located at Century Park in Kigali, the two 120-kw twin-gun charging piles are critical for the daily operation of the newly introduced buses.
"The charging facility is a vital part of our strategy to support not only our fleet but also private EV owners, enhancing the charging infrastructure in Rwanda," Wilson added.
The buses require just over an hour for a full charge, which allows them to operate for a day. IZI''s charging station can also be used for a quick mid-day recharge when necessary. Additionally, these stations will soon open to a growing number of private EV owners, who can fully charge their vehicles in just 15 to 20 minutes.
Cost-efficient, accessible
IZI adopts the "pay-as-you-go" pricing model, which is highly cost-effective. Public operators such as Kigali Bus Services (KBS) have to pay $2,200 as a deposit and are provided with the buses and the services, and then are charged $0.5 per km under the pay-as-you-go model, which reduces operational costs by an average of 40 percent and raises profitability. This model includes comprehensive service packages covering vehicle servicing, insurance and training. On the contrary, if operators buy the buses in the market, it might cost them around $120,000 to $160,000 each.
Private EV owners will benefit from affordable charging at IZI''s stations as well, paying 350-400 Rwandan francs ($0.27-0.3) per kwh.
With the aim to boost e-mobility, IZI plans to import an additional 20 buses by October and aims to reach the milestone of 100 buses in 12 months. The company also intends to expand its charging network from one to five stations across Kigali, supporting the city''s growing EV ecosystem.
IZI currently works with KBS as a public transport operator, and is planning to join hands with other operators such as Volcano Express and Royal Express as well.
IZI is not the only such company operating in Rwanda. Before it entered the market, Kenyan company BasiGo, which has been assembling Chinese vehicles in Kenya, launched its business in Rwanda earlier in March.
The company started with four electric buses, and plans to import another 100 buses by March 2025, and 200 more in 2026. A fully charged bus can travel 300 km. Charging piles are installed at specific locations in the capital city.
BasiGo also uses the pay-as-you-go pricing model.
Public transport operators say they are ready to embrace the use of EVs as they could be more profitable while also protecting the environment with zero emissions.
Charles Ngarambe, CEO of KBS, said the business model of leasing could be profitable. "We believe the IZI model can be transformative for the profitability of our business and drive our expansion. We are ready to work with the company and use more electric buses to curb the emissions that pollute the air," he said.
More incentives
Rwanda also welcomed Hallo Life Ltd., a company that assembles motorcycles with supplies from China and sells them in Kigali. The company also operates other African countries such as Tanzania and Cote d''Ivoire, with plans to extend to Ethiopia, Uganda, Kenya and elsewhere.
According to its CEO Glory Lu, the company is dedicated to providing the best short-distance e-mobility solutions using Chinese technology. "Our motorcycles are cheap, with no fuel to emit gasses and no noise, and they require no maintenance," he said.
So far, the company has sold more than 200 motorcycles, and more have been assembled. According to Lu, the assembling plant, which is located in Kicukiro District in the capital city, is ready to serve all clients as it has the capacity to produce hundreds of vehicles per day.
Rwanda is among the countries that have ambitious plans to transit to green transport. According to the Ministry of Infrastructure, the East African country plans to have 20 percent of its buses, 30 percent of its motorcycles and 8 percent of its cars powered by green energy by 2030.
In order to increase the uptake of EVs in the country, the government has introduced incentives for battery-powered EVs, plug-in hybrid EVs and hybrid EVs.
Companies manufacturing and assembling EVs in Rwanda can now enjoy a reduced income tax rate of 15 percent as well as a tax holiday, according to the Ministry of Infrastructure. Electricity tariff for charging stations is also capped at the industrial tariff rate for large industry category, while the private EV chargers benefit from a reduced tariff during the off-peak time.
Besides, EVs, spare parts, batteries and charging station equipment are treated as zero-VAT products. The government has also exempted import and excise duties on EVs, spare parts, batteries and charging station equipment, while the withholding tax of 5 percent at customs is also exempted.
These measures, according to the officials, are aimed at reducing carbon emissions by vehicles, which are one of the leading causes of air pollution. According to the statistics from the Ministry of Environment, 40 percent of the transport sector emissions in Rwanda are from buses, while road transport accounts for 13 percent of the country''s total emissions.
Chinese-made vehicles have an essential role in Rwanda''s pursuit of green transportation. The country now has more than 400 EVs, 3,000 electric motorcycles and 1,500 hybrid vehicles, the majority of which are Chinese-made, according to official figures.
Ampersand''s press statement described BYD''s lithium iron phosphate (LFP) cells as low-cost batteries with a long lifespan and an excellent safety record for everyday users, making them ideal for mass-market electric vehicles.
This development will form part of the broader mission to electrify most of Africa''s 30 million commercial motorbikes, most of which still run on fuel.
Ampersand, which boasts the largest charging network in Rwanda and Kenya, will leverage the new partnership to expand its charging infrastructure to support more electric motorbikes.
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