Challenges hampering the widespread adoption of Electric Vehicle (EV) in Zambia have been outlined by the Zambian Electric Mobility Innovation Alliance (ZEMIA), with key concern raised on financing.
While the challenges have been outlined, the financial institutions have been urged to set up dedicated departments which would look after Small and Medium Enterprises (SMEs) in the EV industry.
Lack of charging infrastructure for EVs was among the challenges drawn by the ZEMIA Co-Founder and president, Kabayo Muhau, in his presentation at a workshop on “Needs and Financing Mechanisms of the Special Economic Zone (SEZ) for battery electric vehicles (BEVS) in Zambia” recently.
Muhau in his presentation pointed out that Zambia faced a significant challenge in the lack of charging infrastructure for EVs.
“This shortage hinders the widespread adoption of EVs, which are crucial for reducing carbon emissions and transitioning to sustainable transportation,” he said.
Muhau also raised access to finance for charging infrastructure as another challenge hindering the adoption of EVs in Zambia.
He stated that one of the challenges hindering the mass adoption of EVs in Zambia was the lack of access to finance for charging infrastructure.
Muhau said without adequate financial support, the development of charging stations was limited, impeding the growth of the EV industry.
“The challenges related to finance extend beyond EVs. In sectors like Small and Medium Enterprises (SMEs), finance is a critical factor affecting growth. Access to capital and funding sources are often limited, hindering the expansion of businesses in Zambia,” he said.
Muhau in his presentation also talked about the solutions to the challenges, which among them was for banks to set up dedicated departments which will look after SMEs in the EV industry.
He suggested that this should be the same way banks had dealt with agriculture as the potential for the EV industry was huge.
Muhau, however, mentioned that such undertaking needed support such as setting up manufacturing plants or assembly lines or conversions/retrofitting workshops.
Muhau also proposed to government to create a special purpose vehicle fund to finance SMEs with manufacturing projects in the EV Value chain.
He cited Ghana as one of the countries which had done it through Kiira Motors.
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