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Figure 10 Evolution of Battery Energy Density and Cost

Source: Global EV Outlook 2016

The impact potential of EV adoption in Africa as a whole is also interesting in terms of
energy security. Vast tracts of the continent lack formal electricity infrastructure and
national electricity grids. Leapfrogging straight into decentralised generation could
save significant development costs, in the same way that many African countries
skipped investment into telephone lines and straight into mobile phone networks. This,
if properly regulated and implemented, could result in cheaper and cleaner electricity
generation for EV use as well as battery storage for general energy use – fast-tracking
sustainable energy development in these countries. EVs also require lower maintenance,
which makes them more feasible in countries without the facilities for constant servicing
and reliability checks. PROVINCIAL OUTLOOK NATIONAL OUTLOOK GLOBAL OUTLOOK GAP HOUSING INVESTOR NARRATIVE SPOT THE OPPORTUNITY PORTFOLIO INSIGHTS KHULISA NEWSLETTER ELECTRIC VEHICLES ENERGY SECURITY LOOKING AT GDP

The Market for Electric Vehicles in South Africa
South Africa is the thirteenth highest emitter of greenhouse gases in the world, with 22%
of these emissions being contributed by the transport sector. Furthermore, transport
consumes around 30% of final energy in South Africa, and this is expected to double
by 2050.
3
Demand for transport is increasing as urban populations and incomes rise, and thus
the sector needs to become far more efficient if it is to cater for the improved mobility
of an increasing number of people in the future, whilst also not increasing the total
country emissions. This is especially important in light of the recent international climate
negotiations and imminent carbon tax implementation.

3 Dane, A., The potential of electric vehicles to contribute to South Africa's greenhouse gas emissions targets
and other developmental objectives: How appropriate is the investment in electric vehicles as a NAMA?.
Energy Research Centre, University of Cape Town, 2013

QUARTERLY ECONOMIC BULLETIN 2016 31