Tanzania is emerging as the weakest link in East Africa's electric mobility race, with investors increasingly gravitating towards Ethiopia and the Democratic Republic of Congo (DRC), where policy support and market opportunities are perceived to be stronger.

 

Spiro, one of Africa's leading electric motorcycle companies, is the latest firm to prioritise the two markets ahead of a full rollout in Tanzania, citing slow policy and market development.

Ethiopia is currently leading East Africa’s e-mobility uptake, with electric vehicles currently accounting for over eight percent of all of its fleet, supported by a clear policy and mass-market adoption.

DRC, which is globally significant in the EV industry due to its vast mineral wealth, is also emerging as an important market for finished products, thanks to its vast population and expansive demand for motorcycles.

For investors in the e-mobility market, Ethiopia’s policy leadership and DRC’s vast market have made the two countries more attractive, leaving Tanzania playing catch-up in the race to attract investments.“It is much more opportunistic for Spiro to try and capture the Ethiopian and DRC markets simply because all the right boxes have been ticked and all the policies for setting up a successful business have already been laid out,” says Raymond Kitunga, Spiro’s deputy country head for Kenya.

Spiro had announced a phased entry into Tanzania in May 2025, beginning with the opening of 10 battery swap stations, construction of a local assembly plant, and partnering with youth organisations to spur demand.

But, more than a year later, the plans have remained on paper. Yet, when the company raised $215 million last week to expand its operations, it opted to invest in Ethiopia and DRC instead.

 “They have chosen three-wheelers and four-wheelers, for now, in terms of developing that market. The market is also very mature in terms of alternative energy, which is [liquefied natural] gas.”Tanzania has an estimated 10,000 electric vehicles, which pales in comparison to Ethiopia’s 115,000. Kenya has 24,574 and Rwanda has 5,500 -- which account for 1.4 percent of the vehicles in the country.

The rate of adoption of EVs in Dodoma is much slower than in all neighbouring countries, with experts citing more challenges than the mere lack of government incentives.

Limited charging infrastructure and lack of consumer awareness and acceptance are also significant challenges, according to a recent study by Indian firm 6Wresearch.“The country’s inadequate electricity supply and reliability issues also pose significant obstacles to the widespread adoption of electric vehicles,” argued Sumit Sagar, a senior research analyst at 6Wresearch.

While the DRC faces near-similar challenges as Tanzania in EV adoption, the country holds about 70 percent of the world’s cobalt, a crucial element in the manufacture of EV batteries.

With growing calls and support to transform the country from a mere exporter of raw materials to a hub for battery manufacturing, investors are seeing an opportunity to localise production of EVs in the country.

Spiro says it also sees adequate government incentives to spur growth and investment in the industry, unlike in Tanzania.

Ethiopia, on the other hand, leads the region incentivising e-mobility. Recently, the government banned importation of internal combustion engine two and three-wheelers, effectively raising demand for EVs.

In its latest e-mobility strategy, Ethiopia has introduced one of the continent’s most comprehensive packages of incentives for EV investors, including tax holidays, access to land for manufacturers, faster licensing processes and low-interest financing schemes to encourage EV purchases. It is also accelerating the rollout of charging infrastructure and plans to electrify all government vehicles.

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