Tanzania's electric vehicles gain traction, but hurdles persist

A significant concern is that these electric cargo tricycles currently lack registration numbers, which makes it difficult to distinguish them from private or commercial gasoline-powered tricycles, commonly known as Toyos. Similarly, electric bicycles do not have registration numbers, unlike regular motorbikes (Bodaboda).

The Tanzania Revenue Authority (TRA) has clarified that following a law passed in July, all vehicles—including electric bikes and tricycles—must be registered. The 2024/25 financial year saw Parliament amend the Motor Vehicle (Tax on Registration and Transfer) Act to include electric vehicles. TRA’s Director for Taxpayer Services and Education, Mr Richard Kayombo, emphasized that registration is mandatory for all electric vehicles.

“Operating unregistered electric vehicles on the streets is illegal, and we have the authority to apprehend offenders,” he stated. Previously, electric vehicles were difficult to identify due to their electric systems, leading to unregistered purchases. The new law addresses this issue.

According to a March 2023 E-Mobility Alliance report, Tanzania has approximately 5,000 electric motor vehicles. While this number is modest compared to global trends, it marks a significant start for East Africa. The ministry of Energy is collaborating with the United Nations Development Programme (UNDP) on an energy efficiency project that includes an e-mobility component. “The project is just beginning, and e-mobility is a priority,” said Mr Felchesmi Mramba, the Permanent Secretary of the Ministry of Energy. “The project involves both public and private sector participation, and we anticipate significant progress upon its completion.”

Electric motorbike rider Mr Fabian Bishanga shared his experience: “The seller told me it functioned like a bicycle, so registration or insurance wasn’t required. I’ve been using it on the road without any problems.” He charges his motorbike at home for seven hours, achieving a 70-kilometer range on a full charge. He emphasized the need for widespread fast-charging stations as electric vehicle adoption grows.

“This would allow riders to recharge on the go, preventing them from having to return home solely for charging.”

Mr Bishanga noted that electricity is a cheap and affordable fuel source, with a single charge costing just one and a half units. “I bought it two months ago for Sh1.8 million. It’s very economical compared to fuel-powered motorbikes. My only challenge is finding spare parts or getting maintenance, as I have to take it back to the seller.”

The Land Transport Regulatory Authority (Latra) acknowledges the global trend toward electric and natural gas vehicles, according to its Director General, Mr Habibu Suluo.

The government has also implemented a VAT exemption on components for converting conventional vehicles to electric and natural gas models, effective July 1, 2023.

“These initiatives have stimulated the import of electric bicycles, tricycles, and other electric vehicles,” Mr Suluo stated.

Latra has collaborated with TRA and the police to propose legal amendments in December 2023. The Motor Vehicle (Tax on Registration and Transfer) Act and the Road Traffic Act were amended to accommodate electric vehicles. “

With TRA enforcing the amended legislation, we welcome commercially registered electric bicycles and tricycles to apply for regulatory licenses,” said Mr Suluo.

“Our licensing system is now automated. You can apply, pay, and receive your license online. We have also initiated a public awareness campaign.