Tanzania leads East Africa in EV adoption, with over 5,000 electric vehicles on the road. The EV market is growing at an estimated annual rate of 40.5%, and the National Electric Mobility Policy was enacted in December 2024 to support the country’s transition toward clean transportation. Yet, Tanzania has fewer than 15 public EV charging stations across the entire country, with almost all of them concentrated in Dar es Salaam. This creates a massive first-mover infrastructure gap, particularly in Arusha, where EV adoption is growing rapidly but public charging infrastructure is virtually absent.
Investment Opportunities in Solar EV Charging Stations.
The charging infrastructure gap presents a compelling investment opportunity to establish and operate a branded network of solar-powered EV charging hubs under a single company. These stations can be strategically located at high-traffic areas in Dar es Salaam and Arusha, serving both urban commuters and commercial fleets.
Each station would utilize rooftop or canopy-mounted solar panels, battery energy storage systems, and AC/DC chargers to serve electric motorcycles (bodabodas), electric tuktuks (bajajis), and passenger EVs. By generating electricity on-site, these charging hubs can operate independently of TANESCO’s unreliable grid, providing drivers with a dependable charging solution while reducing operating costs.
Why Solar-Powered Charging Makes Sense?
Tanzania receives between 5.5 and 6.5 kWh/m²/day of solar irradiance, making it one of the countries with the best solar resources in the world. This natural advantage makes solar energy an ideal power source for EV charging infrastructure.
The TANESCO grid experiences frequent power outages, making solar-powered charging stations with battery storage a more reliable alternative. Solar’s levelized cost of electricity (LCOE) in East Africa is estimated at only $0.07–$0.16 per kWh, compared with the commercial grid electricity rate of approximately $0.091 per kWh.
In addition, EV drivers can save up to 83% on fuel costs. Charging an electric vehicle costs approximately $0.20 per 20 kilometers, compared with about $1.20 for a petrol-powered vehicle over the same distance. These savings provide a strong incentive for drivers to switch to electric mobility and regularly use public charging stations.
Multiple Revenue Streams.
The business model offers multiple revenue streams beyond electricity sales.
Charging fees provide the primary source of revenue. Prices can be set 30–40% lower than the equivalent petrol cost while still delivering healthy operating margins.
Fleet and B2B contracts with ride-hailing platforms such as Bolt and inDrive, delivery companies, logistics firms, and safari operators can provide predictable monthly income through fixed-fee agreements and guaranteed charging volumes.
Digital advertising presents another opportunity. LED and digital screens installed at charging stations can display advertisements to waiting drivers and passing traffic. Premium locations such as Clock Tower and Kariakoo could generate between $500 and $1,500 per month for each advertising screen.
Future expansion could include battery-swapping services for standardized batteries, allowing drivers to exchange depleted batteries for fully charged ones in approximately two minutes. This service could generate between $1 and $2 per battery swap while eliminating charging wait times.
Additional revenue sources include parking fees at premium charging hubs, mobile money transaction commissions, carbon credit sales from reduced greenhouse gas emissions, and the export of excess solar electricity to TANESCO or nearby businesses where net-metering policies permit.
Conclusion
“The best time to plant a tree was 20 years ago. The second-best time is now.”
The charging infrastructure gap in Tanzania will not last forever. Move first. The entrepreneur who acts today will not only build a profitable business but also become part of the backbone of Tanzania’s electric mobility revolution. As EV adoption continues to accelerate, the companies that invest in reliable solar-powered charging infrastructure today will be best positioned to capture tomorrow’s growing market.
Please, do not hesitate to write, message, or WhatsApp to reach out to Tanzania Petroleum if you are interested in purchasing the full bankable business case for this project.
