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Transport Electrification Could Boost Mozambique’s Economic Freedom

Transport Electrification Could Boost Mozambique’s Economic Freedom

Worldwide, the transportation industry is a major contributor to carbon emissions and, consequently, one of the biggest contributors to climate change.

According to the International Energy Agency, the transportation sector was responsible for 27% of global carbon dioxide (CO2) emissions in 2022, making it the second largest source of emissions after the energy sector.

Will the path be the adoption of electric vehicles (EVs)? What will motivate this decision?

Climate change: transportation is a major source of greenhouse gas emissions, and EVs are a sustainable way to reduce these emissions. They generate no emissions when they are in motion, and even when they are charging, the level of emissions is significantly lower compared to what gasoline-powered vehicles emit.

Energy independence: many countries rely heavily on imported oil, which means a significant drain on their economies. By switching to EVs, countries will be able to significantly reduce their dependence on oil and boost their energy independence.

Air pollution: gasoline-powered vehicles emit a variety of pollutants that can have serious health impacts, including particulate matter, nitrogen oxide, and volatile organic compounds. EVs produce no tailpipe emissions, making them cleaner and healthier.

Cost: While the initial cost of EVs may still be higher than gasoline-powered vehicles, the long-term cost of ownership tends to be lower. These vehicles have fewer moving parts and require less maintenance, which translates into lower maintenance costs. They also use electricity instead of gasoline, which is generally cheaper.

Technology: the electrification of transportation is driving innovation in the development and fitting of new technologies, including batteries and charging infrastructure. This could generate new business opportunities, new job creation, and consequently economic growth. There is no doubt that the electrification of transportation is an important step in reducing greenhouse gas emissions, improving air quality, and reducing our dependence on fossil fuels. Additionally, it has the potential to drive technological innovation and economic growth.

Specifically for Mozambique, I believe that electrification of the transportation industry could be important given a few factors that I list:

First, our country is highly vulnerable to the impacts of climate change. The events that have occurred in recent years have had adverse effects on people and on the growth and development of some national regions.

By providing incentives, investing in charging infrastructure, promoting awareness and education, setting goals and targets… governments can help accelerate the adoption of electric vehicles.

We have a strong dependence on fossil fuels, which contributes, as mentioned, to greenhouse gas emissions. The shift to EVs will be a way to reduce these emissions and mitigate the negative impacts of climate change.

In addition to environmental benefits, electrification of the transport industry in Mozambique could also bring economic benefits. Currently, the country imports a significant amount of oil, which could, in the medium to long term, harm its economy.

By switching to EVs, Mozambique could reduce its dependence on oil imports and potentially save in the long run, while reducing shocks to the economy from fuel price fluctuations that directly and dramatically affect the prices of all consumer goods.

We can consider that Mozambique is one of Africa’s power houses, since it currently produces about 187 gigawatts, which when compared with South Africa – Mozambique’s number one energy customer – has a production of 58,095 megawatts. The energy production in the country is divided as follows: water, 75%, gas, 5%, solar, 1%, and others, 19%, which places us as one of the largest producers of clean energy in Africa.

The country produces more energy than it consumes, and exports nearly 60% of its production, so electrifying the transport industry may also serve as a way to boost the creation of a domestic market for our energy. The electrification of the transportation industry will eventually bring health improvements, since EVs do not produce exhaust emissions and are therefore considered cleaner than gasoline-powered vehicles.

Consequently, they would improve air quality, which would be especially beneficial in urban areas where pollution levels are often high.

Overall, electrification of transport in Mozambique is an important step towards reducing greenhouse gas emissions, improving air quality, and reducing the country’s dependence on fossil fuels.

Governments have an important role as drivers of change in this regard.

There are several ways to drive the electrification of transportation in the country:

– Provide incentives for electric vehicle adoption: provide incentives for individuals and businesses to switch to EVs, such as tax or subsidies, which could help make these vehicles more affordable and encourage more people to make the switch.

– Invest in infrastructure for charging, which could be housed in charging stations in public areas or provide subsidies to companies for installing charging stations in specific locations, such as service stations.

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– Promote awareness and education in promoting about the benefits of EVs and the options available, raising awareness about reducing toxic gas emissions and preserving the environment for a longer lasting future.

– Set goals and targets for the electrification of transportation, i.e., stipulate that a certain percentage of vehicles on the roads be electric by a certain date. This can help create a sense of urgency and encourage change.

Enter into partnerships with the private sector and other stakeholders across the value chain to help drive the electrification of transportation. These partnerships could be within infrastructure projects, research and development support, or even within funding lines for electrification efforts. There are many ways in which the government can help drive transportation electrification in the country.

By providing incentives, investing in charging infrastructure, promoting awareness and education, setting goals and targets, and partnering with the private sector and other stakeholders, governments can help accelerate EV adoption and drive progress towards a cleaner and more sustainable transportation system.

The Role of Commercial Banks

Commercial banks, due to their role in society, can be a mechanism for the materialization of these initiatives, either by providing financing to support the direct purchase of EVs or by supporting investment projects in infrastructure that support green technology, and eventually by developing sustainable partnerships to help promote and implement these initiatives.

Thus, in conclusion, commercial electrification of the transport industry could have a strong economic contribution for Mozambique. Such efforts could help accelerate the adoption of electric vehicles and drive progress towards a cleaner and more sustainable transportation system.

Mozambique has all the necessary components to position itself as the first African country with zero emissions in the transportation industry.

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