Middle East conflict is accelerating Africa’s shift toward electric travel, says Uber electric vehicle partner
As concerns about oil supply disruptions in the Middle East drove up global fuel prices, ride-hailing operators across Africa are increasingly turning to electric vehicles as a way to shield drivers from volatile gasoline costs.
That trend is already becoming evident in South Africa, where Uber’s partner in Africa’s first low-cost electric transportation service says demand is accelerating and plans are 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 program 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.
Fuel crises reshape the mobility economy
The renewed conflict in the Middle East has highlighted how vulnerable many African economies remain to imported fuel.
South Africa, despite being one of Africa’s most industrialized economies, imports much of its refined fuel.
Earlier this year, the government looked for alternative suppliers after Middle East shipping disruptions threatened domestic supplies, while it increased imports from the United States to cushion the impact.
For rideshare drivers whose income depends largely on daily fuel expenses, every increase in gasoline prices immediately raises operating costs.
Electric vehicles, once largely seen as an environmental alternative, are now increasingly seen as a financial alternative.
Uber doubles its commitment to South Africa
The development also aligns with Uber’s broader investment strategy in Africa’s largest industrial economy.
In March, Uber announced plans to invest around $298.61 million (R5 billion) in South Africa over the next three years to expand mobility services, delivery operations, charging infrastructure and electric vehicle partnerships.
Valternative’s pilot program in Johannesburg is part of that broader push. The company is deploying around 360 Henrey EV4 vehicles north of Johannesburg, with plans to expand the fleet before entering other South African cities.
According to Bloomberg, the project was launched after rival ride-sharing platform Bolt introduced cheaper rides using gasoline-powered Bajaj Qute quadricycles, prompting Uber to look for a lower-cost electric alternative.
Africa’s expansion underway
Valternative now wants to replicate the model across the continent.
The company plans to expand first to Egypt, Morocco, Ghana and Ivory Coast, with the ambition of eventually operating in eight African countries, Bloomberg reported.
Those markets are emerging as some of Africa’s most promising destinations for electric mobility.
Morocco has positioned itself as a regional manufacturing hub for electric vehicle components and batteries, while Egypt has expanded investments in electric transport infrastructure as governments across North Africa seek to reduce fuel imports and emissions.
Despite growing momentum, significant barriers continue to hold back the adoption of electric vehicles across Africa.
South Africa imposes a 25% import tariff on electric vehicles, compared to 18% for gasoline and diesel cars, making purchasing electric vehicles significantly more expensive.
The country also lacks an extensive public charging network and still generates most of its electricity from coal, limiting some of the environmental benefits associated with electric transportation.
Drivers involved in the Uber pilot have also raised operational concerns, including long loading times and limited coverage areas, which reduce the number of trips they can complete each day.
To address those issues, Valternative plans to roll out six to seven new charging sites each month over the next year, introduce solar-powered charging centers and retrofit existing vehicles with cabin heaters.
A turning point for Africa’s electric vehicle market?
The irony is that a geopolitical crisis centered thousands of kilometers away may end up accelerating one of Africa’s biggest transportation transitions.
As fuel prices become more unpredictable, the economics of electric mobility are improving, particularly for commercial fleets that spend a lot on fuel every day.
For companies like Uber, change is no longer driven solely by climate commitments. It is increasingly becoming a business decision determined by energy security, operating costs and long-term profitability.
“We are totally out of supplies. We plan to expand outside of South Africa as soon as Uber gives us a break,” Jeewa told Bloomberg.
