Context
At project design stage, only 30 % of households in Cabo Verde owned a private car. However, due to improving economic conditions and growing demand for individual transport, motorisation levels were expected to rise steadily. To address this, the government of Cabo Verde prioritised electric vehicles as a key strategy to reduce road transport emissions and increase the share of renewable energy in the energy mix from 20% to 100% by 2040.
Goals and approach to transformational change
The project supported the government in developing and implementing its electric vehicles strategy, aiming for a significant market share of total vehicle purchases. By the end of the project, targets included 4.3% of annually newly registered light-duty vehicles and 10% of new public administration vehicle procurement being electric. The project provided support and incentives for the acquisition of 600 electric vehicles, the installation of a network of 40 commercial and 55 private EV charging stations, and the implementation of five e-bus demonstration projects.
Components and support mechanisms
To address a main financial barrier – the high cost of electric vehicles – the project established an Electric Mobility Facility (EMF), which provided a rebate covering a significant share of the incremental cost of electric cars and buses to first-mover individuals, companies, and institutions. Given the small size of the national market, this was expected to have a strong demonstration effect and spur interest in electric mobility uptake. The market share of electric vehicles was also expected to continue growing after the end of the project. In return, the project was expected to leverage EUR 5.4 million from the public sector and EUR 12.3 million from the private sector.
The Financial Cooperation (FC) component was complemented by the creation of a legal and regulatory framework for electric mobility, awareness-raising among the public, training opportunities for mechanics, and the creation of an MRV system for road transport-related GHG emissions. With these combined measures, Cabo Verde was expected to evolve as a model for electric mobility transformation in West Africa and across the wider small island developing state (SIDS) context.
Long-term impact
The project estimated to directly avoid 19,890 tCO2e and 401,000 tCO2e over the lifetime of the technology. By the end of the project, it achieved 2,333 tCO2e through direct rebate program contributions and indirect benefits from EVs purchased with Cabo Verde’s fiscal incentives. It mobilised €5.6M public funding and €12.7M private finance, supporting 409 EVs via EMF and 372 EVS by private buyers. The project also installed 58 private and 40 public charging stations. It demonstrated strong transformational catalytic potential, with ongoing market growth expected beyond 2025.
