Switching to an electric vehicle (EV) in Tanzania might make sense for urban drivers today, but challenges remain. Here’s a quick breakdown:
- Lower Costs: EVs can save up to 86% on fuel costs and 50% on maintenance compared to gasoline vehicles.
- Options Available: Two- and three-wheelers dominate the market, with prices starting at $558 for e-bikes and $7,430 for used EV cars like the Nissan Leaf.
- Charging Infrastructure: Limited to urban areas like Dar es Salaam, though solar-powered and battery-swapping solutions are emerging.
- Government Support: Tax breaks and duty waivers are in place, but more policies are needed to reduce upfront costs.
- Barriers: High purchase prices, limited charging networks, and a lack of trained technicians hinder adoption.
If you drive short distances in cities and have access to charging, an EV could be a smart choice now. For rural or long-distance drivers, waiting for better infrastructure and lower costs may be wiser.
Electric Vehicle Models Available in Tanzania
Imported and Local EV Models
Tanzania’s electric vehicle (EV) market is still in its early stages, featuring a mix of imported vehicles and locally assembled options. Unlike traditional car markets, the EV sector here is smaller and more specialized. Currently, around 10 companies are involved in importing, selling, retrofitting, servicing, or charging EVs. Out of these, only two companies have managed to sell over 1,000 vehicles, while most others have deployed fewer than 30 units.
The market is largely dominated by two- and three-wheeled vehicles, which are already a common sight in Tanzania. As of 2018, these vehicles made up 59% of the country’s registered vehicles, totaling 1.28 million. This existing infrastructure makes it easier to introduce electric versions of these vehicles.
Several companies are making strides in this space. TRÍ Tanzania, for example, focuses on electric three-wheelers, commonly known as bajajis. The company plans to roll out 500 electric bajajis in Dar es Salaam by the end of the year and has even bigger plans to establish a factory in the capital by 2025.
For those interested in electric cars, Kaypee Motors offers the locally assembled KPA72, which provides a range of 30-40 miles on a single charge of 4-6 hours. While its range may not match global standards, it’s well-suited for urban commutes in cities like Dar es Salaam.
In the two-wheeler segment, Linkall introduced e-bikes to Tanzania in 2018. Other companies, like Revoo and Yadea, sell electric two-wheelers priced between 1.5 million and 3.2 million Tanzanian shillings ($558-$1,190). Additionally, Greenfoot operates a cargo bike network aimed at supporting commercial deliveries.
Another major player is SPIRO, which launched Africa’s largest battery-swapping network in Dar es Salaam in May 2025. SPIRO plans to begin local assembly operations, aiming to reduce costs and create jobs. This could make electric motorcycles and three-wheelers more affordable and accessible.
For traditional car buyers, the market leans heavily on imported used EVs. Popular models include the Nissan Leaf, priced at 20-30 million Tanzanian shillings ($7,430-$11,145), the Toyota Prius plug-in hybrid at 25-35 million shillings ($9,290-$13,005), and the Hyundai Kona Electric at 35-50 million shillings ($13,005-$18,575).
These diverse options highlight a market that is steadily evolving to meet local needs.
Market Growth and Adoption Trends
Tanzania’s EV market is growing steadily, supported by new innovations and flexible financing options. The country is home to 5,000 electric vehicles, the highest number in East Africa. However, the majority of these vehicles are concentrated in Dar es Salaam and nearby urban areas.
Despite this growth, local EV companies face funding challenges. A March 2023 AfEMA report revealed that Tanzanian e-mobility companies have raised just over $1 million to date, falling far behind Uganda’s $5 million and Kenya’s $50 million. This funding shortfall has slowed the market’s expansion.
To tackle affordability, new financing models are emerging. Pay-as-you-go battery plans, daily lease payments via mobile money, and rent-to-own contracts are helping drivers manage costs more easily. These options are especially important given the higher upfront costs of EVs compared to traditional vehicles, which include import duties, taxes, and registration fees.
Commercial users are increasingly drawn to EVs because of their lower operating costs. According to TRÍ, EV drivers can save up to 90% on operating expenses. For instance, electricity costs about 230 Tanzanian shillings per kWh ($0.09), while petrol costs around 3,210 shillings per liter ($1.19) as of 2024. This translates to an 86% savings on fuel costs.
Government policies are also playing a role in boosting adoption. The Finance Act 2023 eliminated excise duties on electric cars, motorcycles, and three-wheelers, signaling strong support for clean mobility. This regulatory shift is expected to accelerate EV adoption in the coming years.
Local manufacturing is beginning to take off, with companies like TRÍ and SPIRO investing in assembly plants. These efforts are likely to reduce costs and improve accessibility. At the same time, entrepreneurial innovations such as lease-to-own motorbikes and modular battery packs are addressing the unique needs of Tanzanian consumers. These grassroots solutions suggest that Tanzania’s EV market is carving out its own path, rather than relying solely on imported technologies.
Electric three-wheeled motorcycles gaining popularity in Tanzania
Charging Infrastructure: Current State and Gaps
Building on earlier discussions about market growth, having a dependable charging network is essential for Tanzania to fully embrace the potential of electric vehicles (EVs).
Public and Private Charging Stations
Tanzania’s EV charging infrastructure is still in its early stages, with most charging stations concentrated in Dar es Salaam. This limited availability means many EV owners rely heavily on home charging, which can deter prospective buyers.
In August 2024, DART and TRÍ introduced a cutting-edge charging system designed for electric two- and three-wheelers at key locations in Dar es Salaam. More installations are in progress.
"This project is crucial for addressing last mile connectivity, allowing customers to easily access our DART infrastructure with clean energy transport options. This initiative is also a key step in our battle against environmental pollution." – Ms. Delfina Mathias, Project Coordinator for Solution Plus and DART’s Manager of Transport Systems and Infrastructure Development
"We aim to install charging stations that are easily accessible for users of electric gutas, motorbikes, and bajajis, enabling them to charge their vehicles and continue their cargo and passenger transport businesses efficiently." – Ms. Mercy Kitomari, Policy and Advocacy Lead at TRÍ
Startups like eMobility Tanzania, GreenCharge Africa, and WAGA Motion are working to expand charging networks, incorporating mobile payment systems to simplify usage . Despite these advancements, the current infrastructure struggles to meet the needs of widespread EV adoption, particularly for long-distance travel. Private investments are helping, but a national e-mobility policy is essential to attract further investment in public charging infrastructure.
In addition to traditional charging solutions, renewable energy options are gaining traction.
Solar-Powered Charging Options
Solar-powered charging stations are emerging as a practical solution in areas with limited grid access. In 2023, UNDP Tanzania‘s Energy Efficiency Project equipped its Dodoma office with solar panels to power two new electric vehicles purchased under the Greening Moonshot initiative. These EVs replaced internal combustion engine vehicles, reducing emissions and eliminating fuel costs. Following the official launch in May 2024, project partners began transitioning their fleets to EVs.
"At UNDP, we are committed to reducing our carbon footprint wherever possible. The switch to the SGR and EVs for our Dodoma office is not just a matter of cost-efficiency – it’s about embodying the principles of sustainability we advocate for in Tanzania and worldwide." – Shigeki Komatsubara, UNDP Resident Representative in Tanzania
GreenCharge Africa is also developing solar-powered charging stations to reduce reliance on the grid. Meanwhile, WAGA Motion plans to add solar and wind energy options to their stations to address electricity supply challenges.
"Our stations will be equipped to switch to renewable energy when electricity is unstable. It’s a step towards sustainability and reliability." – Gibson Kawago, Tanzanian tech entrepreneur, WAGA Motion
However, gaps in the infrastructure remain evident. For instance, a UNDP driver reported paying 20,000 Tanzanian shillings (approximately $7) for electricity at a petrol station while traveling to another region due to the lack of charging stations along the route. This underscores the need for more widespread charging options, particularly for intercity travel.
Mobile Payment and Location Services
As the charging network grows, mobile payment systems are streamlining the user experience. Tanzania’s strong mobile money ecosystem is playing a critical role in this transition. WAGA Motion, for example, has integrated mobile payment options into its pilot charging stations.
"Many people who want to bring EVs into Tanzania ask themselves, ‘Where will I charge my car?’ So, the goal of this project is to accelerate the transition to e-mobility for Tanzanians." – Gibson Kawago, Tanzanian tech entrepreneur, WAGA Motion
While real-time charger location services are not yet widely available, the integration of mobile payments marks an important step in simplifying EV charging. However, significant expansion of the charging network is needed to support broader EV use across both urban and rural areas.
Cost Analysis: EV Ownership vs Traditional Vehicles
Exploring the costs of owning an electric vehicle (EV) versus a traditional petrol-powered car in Tanzania reveals a clear contrast between upfront expenses and long-term savings. While EVs may seem expensive initially, their operating costs often tip the scale in their favor over time.
Upfront Costs vs Operating Expenses
The initial price tag of an EV is typically higher than that of a petrol car. Even with the Tanzanian government removing excise duties and waiving some import charges on EVs in 2023, the overall costs remain steep due to import duties, taxes, and registration fees.
However, the story shifts when looking at operating costs. Petrol costs around TZS 3,210 per liter ($1.19), while electricity for EVs costs just TZS 230 per kWh ($0.09). This translates to a massive 86% savings on fuel expenses for EV owners compared to those driving gasoline-powered vehicles. Additionally, EVs require about 50% less maintenance than internal combustion engine (ICE) vehicles, thanks to their simpler design and fewer moving parts. These savings highlight the potential of EVs to reduce overall ownership costs, particularly as local production and financing options evolve.
Local Manufacturing and Battery Solutions
Efforts to lower the cost of EV ownership are gaining traction through local manufacturing. In May 2025, SPIRO, Africa’s largest battery-swapping network, launched operations in Dar es Salaam with plans to begin local assembly. This move is expected to reduce production costs, lower retail prices, and create jobs. Over time, local assembly could make EVs more competitively priced against traditional vehicles.
Battery-swapping technology is also emerging as a game-changer, especially for commercial users. Networks like SPIRO and TRÍ are introducing battery-swapping solutions that aim to reduce costs further while improving operational efficiency.
Payment Plans and Financing Options
Flexible financing is helping to make EVs more affordable for Tanzanians. Innovative payment models such as pay-as-you-go battery plans, daily mobile-money lease payments, and rent-to-own contracts are giving drivers manageable options from day one. Companies like Watu Credit are tapping into Tanzania’s well-established mobile money ecosystem to offer these flexible plans. They’re even piloting lease-to-own motorbikes and modular battery packs to ease entry costs.
Traditional vehicle financing is also available through banks, microfinance institutions, and car dealerships. Microfinance options may be more accessible to self-employed individuals but often come with higher interest rates and shorter repayment periods compared to bank loans. Financial advisors suggest carefully evaluating budgets, comparing lender interest rates, and making larger down payments to reduce overall loan costs and interest.
With reduced operating expenses and creative financing solutions, the financial case for EVs in Tanzania is steadily improving. These advancements are making EV ownership more feasible, paving the way for broader adoption across the country.
sbb-itb-d9186c2
EV Adoption: Benefits and Drawbacks in Tanzania
Switching to electric vehicles (EVs) in Tanzania offers several advantages, but there are also challenges that potential buyers should carefully consider.
Key Benefits of Electric Vehicles
One of the standout benefits of owning an EV in Tanzania is the significant savings on fuel costs. Electricity costs approximately TZS 230 per kWh ($0.09), while petrol is priced at about TZS 3,210 per liter ($1.19). This means EV owners can save up to 86% on fuel expenses, as electricity costs roughly 7% of what petrol would for the same distance. On top of that, EVs generally require about 50% less maintenance than traditional gasoline-powered cars, reducing long-term upkeep costs.
The advantages extend beyond personal finances. Tanzania currently spends around $5.19 billion annually on refined petroleum imports – its most expensive import category. A shift to EVs could help reduce this dependency, freeing up government resources for other critical areas. Additionally, the expanding EV industry is generating employment opportunities in areas like manufacturing, vehicle maintenance, and the development of charging infrastructure.
From an environmental perspective, EVs contribute to lower greenhouse gas emissions, aligning with global climate goals. This shift could also position Tanzania to attract international investment aimed at supporting sustainable energy initiatives.
Main Barriers to EV Adoption
Despite these benefits, there are several hurdles to EV adoption in Tanzania. The high upfront cost of EVs remains a significant challenge. Even with government incentives, such as reduced import duties and tax exemptions, EVs are still more expensive than traditional vehicles.
Another critical issue is the lack of adequate charging infrastructure. While there are about 5,000 electric vehicles on Tanzanian roads, the charging network has not expanded quickly enough to meet growing demand. This lack of infrastructure discourages potential buyers. Adding to this, inconsistent electricity supply in some regions raises concerns about the reliability of charging EVs.
Other challenges include limited public awareness about the benefits of EVs, a shortage of technicians trained to service and maintain these vehicles, and financing difficulties. Many traditional loans come with high interest rates and short repayment periods, making it harder for buyers to afford an EV.
Below is a quick comparison of the main advantages and challenges of EV adoption in Tanzania:
EV Pros and Cons Comparison
| Advantages | Disadvantages |
|---|---|
| Up to 86% savings on fuel costs compared to gasoline vehicles | Higher upfront purchase price despite government incentives |
| About 50% lower maintenance costs than traditional cars | Limited charging infrastructure across the country |
| Reduced greenhouse gas emissions and environmental impact | Concerns over electricity grid reliability in some areas |
| Lower running costs due to cheaper electricity | Low public awareness about EV benefits and usage |
| Job creation in manufacturing, maintenance, and infrastructure | Shortage of skilled EV technicians and mechanics |
| Decreased reliance on imported fossil fuels | Limited financing options with favorable terms |
| Government support through tax breaks and duty waivers | Higher total cost of ownership due to initial expenses |
Deciding to switch to an EV in Tanzania depends largely on individual circumstances, such as driving habits, financial resources, and access to charging facilities. While the potential savings in fuel and maintenance are substantial, the higher upfront costs and infrastructure gaps remain critical factors to consider.
Government Policies and Market Outlook
While earlier sections have delved into operational hurdles, it’s clear that the Tanzanian government is stepping up to address these issues. Recognizing the growing relevance of electric vehicles (EVs), officials are working to create a more welcoming environment for EV adoption. However, they admit that more detailed and focused policies are needed to speed up this transition.
Current Government Support and Incentives
Tanzania is in the process of finalizing a national electric mobility framework to simplify EV imports and encourage their use. Dr. Gerald Kafuku, Innovation and Technology Manager at the Commission for Science and Technology (Costech), shared insights into the government’s strategy:
"We are working towards including incentives in the tax laws to create a supportive environment for EV registration and charging infrastructure."
To push EV adoption forward, the government is exploring tax breaks on EV imports and considering grants or subsidies for companies setting up EV charging stations. Among the initiatives is a plan to require fuel station owners to install EV chargers as part of the broader national strategy.
The Ministry of Transport has also been vocal about its commitment. Mr. Mario Kazimoto, Transport Officer at the ministry, emphasized:
"The government is committed to developing policies that will accelerate their adoption for sustainable development."
The country’s investment in electric trains for the Standard Gauge Railway (SGR) project showcases this commitment to electric transportation solutions.
Still, implementing these policies comes with challenges. Sisty Basil, Executive Director of Energy and Livelihoods for Communities (E-LICO), highlighted some key issues:
"After learning, we realized we should have a policy to reduce importation costs, have institutions that will produce mechanics when we have the vehicles, so we decided to meet to discuss what we saw there and our recommendations in the policy draft including solving challenges."
Efforts are underway to bridge the skills gap. For instance, Arusha Technical College is updating its curriculum to train professionals in EV technology. These educational initiatives, combined with policy shifts, are setting the stage for a brighter market outlook.
5-10 Year Market Projections
The next 5–10 years hold considerable promise for Tanzania’s EV market. Global investors are showing interest, with projects ranging from infrastructure development to training partnerships. Collaborations with Chinese EV manufacturers and European firms are paving the way for growth. A significant milestone came in May 2025 when SPIRO, Africa’s largest battery-swapping network, launched in Dar es Salaam. The company also committed to local assembly, aiming to cut costs and create jobs.
Tanzania is focusing on two- and three-wheelers, which align with local income levels and urban transportation needs. For instance, TRÍ, a Tanzanian brand of electric tuk-tuks, has reported operating-cost savings of up to 90% for its drivers, primarily due to the lower cost of electricity compared to gasoline. Additionally, the country’s rich reserves of nickel and graphite could support local battery production, reducing costs and boosting job creation.
However, experts stress the importance of a comprehensive national e-mobility policy. Key gaps include import regulations, registration procedures, safety standards, and energy grid integration. Addressing these issues could pave the way for more affordable used EV imports to enter the market.
The government is actively working on a policy framework that should be ready for submission to the Ministries of Finance and Transport in time for the 2024/25 fiscal year. This timeline suggests that more defined incentives and regulations could be in place within the next couple of years.
With growing government support, international partnerships, and local manufacturing initiatives, Tanzania’s EV market is poised for substantial growth. The challenge lies in creating policies that not only tackle existing obstacles but also capitalize on the country’s natural resources and strategic position in East Africa.
Conclusion: Should You Switch to an EV Now?
Switching to an electric vehicle (EV) could make sense right now – especially if your driving needs are centered around urban, short-range trips.
The financial benefits are becoming clearer. EVs come with significantly lower operating costs. Electricity costs about 7% of what petrol does, offering up to 86% in fuel savings, alongside 50% lower maintenance expenses. However, the upfront cost of EVs remains a major barrier. A recent Total Cost of Ownership study found that EVs in Tanzania are still more expensive overall than traditional vehicles, largely due to high purchase prices, import duties, and registration fees. Whether the long-term savings in fuel and maintenance outweigh the initial investment depends on your driving habits and budget. For many, this cost equation makes electric two- and three-wheelers an even more appealing option.
Electric two- and three-wheelers are a practical starting point. These vehicles are more affordable and better suited to local income levels and urban travel patterns. In Tanzania’s cities, electric motorcycles and bajajis are becoming increasingly common. If you work in sectors like taxi services, deliveries, or logistics, an electric bajaji or motorcycle could offer immediate savings and a quicker return on investment.
Infrastructure is improving, but it’s still a challenge. Although charging stations are currently limited, efforts by the government and private sector are gradually expanding the network. This progress, combined with potential government incentives like tax breaks on EV imports and subsidies for charging infrastructure, could make EV ownership more appealing in the near future. These developments suggest that the EV market in Tanzania is moving in a promising direction.
If you mostly drive in urban areas with predictable routes and access to charging, an EV could be a smart choice now. On the other hand, rural drivers or those who frequently travel long distances might find it more practical to wait until the charging infrastructure matures.
Tanzania is still in the early stages of its EV transition. Early adopters willing to navigate the current limitations can enjoy lower operating costs and play a role in shaping a more sustainable transportation landscape. For others, waiting a year or two as policies and infrastructure improve may be the better option.
FAQs
What challenges does Tanzania face in developing electric vehicle charging infrastructure, and what solutions are being implemented?
Tanzania is grappling with several hurdles in building up its electric vehicle (EV) charging infrastructure. The country currently has a limited number of public charging stations, which makes it inconvenient for EV owners. On top of that, the costs of installing and maintaining these stations are steep, and the nation’s inconsistent power supply further complicates the creation of a dependable charging network. Together, these challenges are slowing the adoption of EVs.
To tackle these issues, efforts are being made to set up charging stations in key urban hubs like Dar es Salaam. At the same time, initiatives are focusing on crafting comprehensive EV policies and attracting investments to enhance infrastructure and stabilize the energy supply. These measures are essential for supporting the rising interest in EVs and helping Tanzania move toward a more sustainable transportation future.
How do the upfront costs of electric vehicles compare to traditional cars in Tanzania, and what financing options can make EVs more affordable?
Electric vehicles (EVs) in Tanzania generally range from $7,400 to $13,000 for used models like the Nissan Leaf and Toyota Prius Plug-in Hybrid. These prices account for import expenses and the relatively small size of the local EV market. On the other hand, traditional gasoline-powered cars often come with a lower sticker price, though their long-term fuel and maintenance costs can add up significantly.
To make EVs more affordable, new financing options are emerging. These include pay-as-you-go battery plans, mobile-money lease payments, and rent-to-own agreements, which allow buyers to spread out the costs over time. These creative payment solutions are helping more Tanzanians consider EVs as a practical and attractive choice, aligning with the country’s shift toward greener transportation.
What government policies and incentives support the adoption of electric vehicles in Tanzania, and how might they change in the future?
The Tanzanian government has taken a major step toward encouraging the use of electric vehicles (EVs) by eliminating import duties on EVs and lowering tariffs on their components. These changes are designed to make EVs more affordable and accessible to the public. At the same time, the government is working on a national EV policy aimed at promoting e-mobility, cutting down on pollution, and reducing vehicle operating costs.
Looking to the future, plans include expanding EV infrastructure, introducing more focused incentives, and establishing a strong regulatory framework to meet the rising interest in electric vehicles. These initiatives are geared toward making EVs a practical and cost-effective choice for Tanzanians, while also advancing environmental and economic goals.
Related posts
- Tanzania’s EV Adoption: Key Challenges
- Tanzania’s EV Import Duty Exemptions Explained
- Electric Cars in Tanzania: Affordable Options You Can Buy Today ⚡️
- Import Electric Cars in Tanzania with EV24.africa
