Users of electric vehicles (EVs) are reporting lower operating costs compared to those using fuel-powered cars, as Rwanda grapples with rising fuel prices.
Petrol pump prices have increased to Rwf2,938 per litre, up from Rwf2,303, intensifying pressure on motorists.
In response to the global fuel crisis linked to the Iran-Israel-US war, the government is encouraging a shift to electric mobility. The Ministry of Infrastructure has directed all public institutions to ensure that at least 30 per cent of vehicles they procure are fully electric.
Also read: Petrol price increases by over Rwf600
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Rwanda has also taken policy steps to accelerate the transition. Since January 2025, petrol-powered motorcycles are no longer registered for public transport in the City of Kigali, with only electric motorbikes permitted.
Lower running and maintenance costs
Early adopters who spoke to The New Times say EVs offer significant savings.
Theoneste Rwandekeye, who switched from a fuel-powered car to an electric one, said he now spends about Rwf18,000 on a Kigali-Musanze round trip (approximately 200 km), compared to Rwf60,000 previously on a fuel-powered Toyota RAV4.
He added that an electric SUV costs around Rwf30 million, compared to about Rwf50 million for a similar fuel-powered model.
"Maintenance of electric cars is affordable. They do not require oil changes. Changing engine oil for a fuel-powered car can cost Rwf280,000 after driving 5,000 km," he said.
ALSO READ: Govt mandates 30% electric vehicles in public procurement
Amit Chawla, Managing Director of Spiro Rwanda, said the company's data shows electric motorbikes are about 50 per cent cheaper to operate than fuel-powered ones.
"At current prices, a litre of petrol costs about Rwf2,938 and allows travel of roughly 40 km. A fully charged battery costs around Rwf2,450 and covers 75-80 km," he explained.
"That is nearly double the distance at a lower cost, resulting in approximately 50-55 per cent savings in operating expenses."
Also read: E-mobility: Taxi-moto operators could be facilitated to go electric
Spiro aims to scale up to 75,000-80,000 electric bikes within five years, alongside about 1,000 battery swap stations and a network of up to 70,000 batteries.
Motorcycle rider Alex Ndorimana echoed similar savings, noting that a full battery charge costs about Rwf2,500, comparable to roughly one litre of fuel at Rwf3,000, with both covering around 60 km and generating about Rwf5,000 in earnings.
Investment and incentives
The Ministry of Environment estimates that full adoption of electric mobility in Rwanda could require up to $900 million in investment.
Also read: How efficient are electric motorbikes?
To support the transition, the government has introduced a range of fiscal incentives. Electricity tariffs for charging stations are capped at industrial rates, with additional reductions during off-peak hours.
Electric vehicles, spare parts, batteries, and charging equipment are VAT zero-rated, and they are exempt from import and excise duties. A 5 per cent withholding tax waiver at customs also applies.
Non-fiscal incentives include provision of rent-free land for charging stations on government property, integration of EV infrastructure into building codes and urban planning, and preferential treatment such as green number plates and access to dedicated lanes. Free entry into congestion zones is also under consideration.
Companies investing in EV manufacturing and assembly benefit from incentives such as a 15 per cent Corporate Income Tax rate and tax holidays.
Economic and environmental gains
A government-commissioned study estimates that scaling up electric motorcycles could reduce fuel import costs by about Rwf23 billion annually. Instead, around Rwf14 billion would be spent on domestically generated electricity, resulting in net savings of approximately Rwf9 billion per year.
Also read: E-mobility: Rwanda moves to convert fuel motorbikes to electric
The study, titled, "The Impact of Scaling Up Electric Motorbikes in Rwanda", was conducted by Egide Kalisa alongside researchers Andrew Sudmant (University of Leeds) and Jonathan Bower (International Growth Centre).
It found that Rwf100 worth of fuel powers a conventional motorcycle for about 5 km, while the same amount spent on electricity can power an electric motorbike for about 11 km. Over a motorbike's lifetime, this could translate into savings of roughly Rwf1.9 million.
Also read: What Rwanda needs to electrify 20% of its bus fleet by 2030
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Scaling electric motorcycles to 100 per cent of moto taxis in Kigali could also cut emissions by 70 kilotonnes of carbon dioxide annually and generate health benefits equivalent to 1,350 Disability-Adjusted Life Years (DALYs).
Electrifying buses and rising power demand
Rwanda aims to electrify 20 per cent of its bus fleet within the next five years, building on pilot projects in Kigali where electric buses and charging stations are already in use.
Most existing chargers are rated between 120 kW and 160 kW, enabling overnight charging for between five and 20 buses per site.
However, increased adoption of electric mobility will raise electricity demand. Kigali's peak power demand is projected to grow by 64 per cent by 2030 even without EVs, and the addition of electric transport could further strain the grid if infrastructure upgrades are not implemented.
To address this, the government has developed a national master plan for EV charging infrastructure to ensure that no vehicle travels more than 50 kilometres without access to a charging station.
A geospatial analysis has identified over 224 potential sites nationwide, with efforts underway to attract private investment, particularly in urban centres and existing fuel station locations.
