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Electric Vehicles Could Soon Be Cheaper than Petrol Cars in Africa – if Financing Barriers Fall

New research from ETH Zürich and PSI finds that electric vehicles paired with off‑grid solar can already be cheaper than petrol cars in many African markets, especially where financing conditions are favorable. Falling battery prices and expanding global EV production have narrowed the cost gap, and in countries such as Botswana, Mauritius and South Africa, total cost of ownership approaches parity. However, high interest rates, risk premiums and limited long‑term credit keep most consumers out of the market. The study estimates that a 7‑15 percentage‑point reduction in financing costs would bring EVs to cost‑parity across more than half of the 52 countries examined by 2030.