NAIROBI, Kenya- In a significant boost for Kenya’s burgeoning electric vehicle (EV) market, Afrigreen Automobile has secured a $20 million investment from Chinese EV manufacturer Chery.
This funding will be used to establish an assembly plant in Nairobi, marking a pivotal moment for the country’s automotive industry.
Afrigreen Automobile has lauded the deal, emphasizing its potential to accelerate the adoption of electric vehicles and generate substantial employment opportunities.
The new assembly plant is expected to create 3,000 direct and indirect jobs, providing a significant boost to the local economy.
Chery, on the other hand, highlighted Kenya’s skilled workforce and its strategic position as an economic hub as key factors in their decision to invest.
This partnership follows closely on the heels of another Chinese EV maker, NETA, investing in Moja EV Kenya, a local firm projected to assemble 250 EVs monthly.
Nishant Mishra, the global head of Future Mobility at Afrigreen Automobile, shared their ambitious plans: “We are planning to start the assembly within one month’s time. We are looking at assembling about 5,000 to 6,000 vehicles every year for the next couple of years as we look for the market, both in Kenya and the COMESA region.”
The deal was ratified in the presence of Principal Secretary Abubakar Hassan Abubakar from the Ministry of Investments, Trade, and Industry.
Abubakar praised the collaboration between foreign investors and local vehicle dealerships, emphasizing its alignment with Kenya’s industrialization vision and the push towards greener transportation.
“The assembly plant will help the transport sector become greener, as we currently have about 4,000 e-vehicles against a population of about 1.7 million cars on the roads,” said Abubakar.
Chery’s delegation also underscored the strong diplomatic ties between Kenya and China as a catalyst for further investments.
The Chinese EV market, dominated by giants like BYD and Tesla, is highly competitive, and firms like Chery and NETA are exploring new markets in Africa and beyond to expand their reach.
Despite the growing interest and investments in Africa’s EV sector, challenges remain. The market penetration of EVs has been slow, primarily due to inadequate charging infrastructure and inconsistent power supply.
However, with continued foreign investment, there is optimism for gradual improvement.
Smaller EV firms like Chery and NETA are keen to capitalize on the untapped potential in African markets, other parts of Asia, and Australia.
Penetration into markets like the US and Europe has been hampered by protectionist tariffs and quota restrictions, making regions like Africa more attractive for expansion.
