The renewed conflict involving the United States and Iran is creating an unexpected winner in Africa’s transport sector- electric vehicles.
As concerns over disruptions to Middle East oil supplies pushed global fuel prices higher, ride-hailing operators across Africa are increasingly looking to electric vehicles as a way to shield drivers from volatile petrol costs.
That trend is already becoming evident in South Africa, where Uber’s partner in Africa’s first low-cost electric ride-hailing service says demand is accelerating, with plans already underway to expand beyond the country’s borders.
According to Bloomberg, Durban-based fleet operator Valternative, which launched Uber’s affordable electric vehicle (EV) pilot in Johannesburg, believes the latest geopolitical tensions have strengthened the business case for electric mobility across Africa.
“What Covid did for delivery in South Africa is what this conflict is doing for electrification,” Valternative co-founder Mahomed Jeewa told Bloomberg.
