This Is How The Scarcity Of Electricity In Africa Can Make You A Fortune In The Renewable Energy and Electric Vehicles Industries
By Happy Benson
Investors and entrepreneurs are more likely to get much more returns on their investments in the renewable energy industry in Africa than anywhere else in the world. In most parts of the world, clean energy production provides a cheaper and more environmentally friendly alternative to fossil fuels, whereas, in Africa, it represents a light at the end of the tunnel as it pertains to connecting hundreds of millions of families to electrical power for the first time.
Inaccessibility to electricity and protracted power outages have long been the bane of Africa’s socioeconomic development and wellbeing. Ironically, it has now presented a golden opportunity for smart entrepreneurs of all levels to leverage this void to create wealth and financial success. A higher percentage of the business models I’m going to highlight to you would not be as lucrative as in other parts of the world where there’s reliable power supply. But it can prove to be very remunerative in Africa where electricity is a rare commodity. However, African investors and businessmen must act now, evolve a new business model customized for the renewable energy industry, and attach themselves to the soft spots of the green technology value chain before the sophisticated and well-oiled multinationals check into this space, suck out the oxygen, and pass out carbon dioxide to us, again.
It is common knowledge that businesses that are built to address personal and/or societal needs always stand a greater chance at being profitable than those that were set up for the sole purpose of churning out profits. That being the case, it becomes quite obvious that any well-thought-out and well-run renewable business in Africa will be profitable.
So, if you are looking to invest in an area that has almost zero percent chance of failure, then you must invest in the renewable energy/electric vehicles industry. I know what you’re thinking about investing in electric vehicles (EVs) in Africa when they aren’t mainstream as of yet. But electric vehicles are the present and future of transportation. And whether Africa is ready for it or not, it’s coming down the pike quick and hard. Ignore it or laugh out loud about it, but if you do, you won’t be laughing for long. Try this on for size: Africa gets all its vehicles from the West and Asia, and these countries now have a transition timetable from gasoline to electric vehicles. That’s to say, unless Africa is going to start building its own gasoline vehicles, it won’t have any choice but to move in the direction of the rest of the world. So why not be the early bird that catches the worm? I am going to give you some surefire areas that guarantee handsome returns on investments, and I am going to tell you the reasons why it’s a win-win situation.
Be a Dealer in Electric Mopeds or E-bikes
There’s a huge untapped market for this particular kind of transportation in Africa. Imagine how many millions of students and budget-constrained individuals in Africa cannot afford a car or the cost of keeping and maintaining a gasoline-powered motorcycle. They would fall over themselves to lay their hands on this budget-friendly type of mobility. Bear in mind that electric-powered vehicles are a lot cheaper to maintain since they hardly breakdown as frequently as gasoline-fueled vehicles. It’s also a lot cheaper to charge with electric than to fuel with gasoline. And, of course, electric vehicles look way cooler and are more environmentally responsible than Internal Combustion Engine (ICE) vehicles. Did I forget to tell you that electric vehicles also provide the smoothest and most dreamy rides imaginable? Well, they do.
Buy an EV Mobile Charging Unit and Start a Roadside Assistance Business
There is huge money-making potential in this area due to inconsistent power supply. You are basically going to be more or less a mobile filling station for electric vehicle owners. Most EV owners in Africa will utilize this service at some point. Your services are not only going to be needed by roadside stranded EV owners, but also needed by EV owners at home. And since you’re able to move around freely, you can position your mobile charging station in areas where your services are going to be in great demand.
Build and Operate a Charging Station
In the near future, charging stations are going to replace or outnumber petrol stations. So, getting in the game early and staking your claim to one or more charging stations around town is definitely a money spinner. A smart and sustainable way of doing this is to generate your power from a solar system. Level 3 charging offers the fastest charging capacity as of today, and even at that, it takes at least 30 to 45 minutes to get 80 to 100% charge. Because of this, charging station operators can leverage this to provide services such as some kind of indoor entertainment EV owners can use as they are getting their vehicles charged. The entertainment services will make your customers comfortable and diversify your revenue streams.
Install a Charging Point to Your Building
Whether you own or rent, or whether the building is residential or business, it’s smart thinking and an astute business move to have one or more charging points installed in your building. It will increase the patronage of your business, and you’ll be making a substantial income from selling electricity to EV owners.
Build a Solar Farm or Wind Power Station
Building and generating electrical power from a solar farm or a wind park is definitely a business model that Africa cannot get enough of. These types of business ventures require a substantial capital to start, but once it’s started, the sky is the limit.
Install a Solar System on Your Building
If you own a rental property, install a solar system on it and sell the generated energy to your tenants. They’ll be so happy to have electricity around the clock that they’ll pay you enough for the energy so you can make profits down the line.
Be an Electric Car Mechanic
This is a no brainer. EVs, just like any other man-made device or equipment, are going to need to be maintained and serviced at one point or another. Knowing how to do this is a sure way of engaging in a financially rewarding venture.
Be an Electric Vehicles Battery/Accessories/Spare Parts Dealer
A traditional ICE car has over 2,000 different parts as compared to an electric car, which only has 21 parts. That means there are fewer parts to deal in, but there is still a good of making a fortune in the electric vehicles’ parts and accessories. So get in the game early, develop a solid game plan, and watch the wheel turning and spinning money your way.
This is the time for African entrepreneurs to say hello to the electric car industry. It is true that Africa has many impediments to the mass adoption of electric vehicles, such as lack of essential infrastructure; poor road networks; absence of a well-defined, government policy agenda; and limited access to electricity. But these obstacles are waiting to get shoved out of the way with the right business acumen, creativity, and innovation. Remember nothing good comes easy, so you shouldn’t expect any kind of success in any industry to be a cakewalk, but if you have been praying for a chance to have a go at turning around your fortune, the renewable energy revolution has created one. It’s time you jumped on it, and good things will happen.
