REMA urges collective action for electric mobility shift

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A Collaborative Approach to Rwanda’s Electric Mobility Transition

Rwanda is making significant strides in its commitment to sustainable development, with a focus on transitioning to electric transportation. This shift is seen as crucial for reducing greenhouse gas (GHG) emissions and enhancing climate resilience. The government, private sector, citizens, and development partners all have a role to play in supporting this transformation.

The country has launched its updated climate action plan, the third-generation Nationally Determined Contribution (NDC 3.0), which outlines national climate ambitions for the next decade. Approved by the Cabinet in November 2025, this $12 billion plan aims to reduce 14.86 million tonnes of carbon emissions from 2025 to 2035. Energy use measures are expected to contribute significantly to these reductions, accounting for the second-largest share of national emissions cuts by 2035, up to 5.52 million tonnes—representing a 42% reduction compared to the Business As Usual (BAU) scenario. However, the transport sector is identified as having the greatest impact, with 49% of the total mitigation potential coming from this area.

A major component of this transition is the adoption of electric vehicles (EVs). The e-mobility initiative plans to gradually increase the use of electric buses, passenger vehicles, and motorcycles from 2020 onwards, aiming for 70% of new vehicle registrations to be EVs by 2035, up from 15% in 2021. Incremental costs for EVs and nationwide charging infrastructure are estimated at $418 million. Various interventions, including Bus Rapid Transit (BRT), dedicated bus lanes, non-motorised transport (NMT) lanes, and other modal-shift initiatives, form part of the Transport Sector Strategic Plan.

Key Projects and Initiatives

The Rwanda Environment Management Authority (REMA) has introduced a four-year initiative titled “Accelerating the Transition to Electric Mobility in Rwanda,” with $1.7 million in funding. This project seeks to address four barriers to e-mobility adoption: institutional, operational, regulatory, and market-related, while safeguarding the environment from long-term risks such as EV battery waste. It includes four components:

• Institutionalisation: Creation of a national intersectoral coordination body; consolidation of stakeholder efforts; integration of gender-responsive strategies; and establishment of a national online knowledge management platform.
• Battery Management: Demonstration projects on EV systems; screening and scoping of EV battery end-of-life handling.
• Scaling and Replication: Expansion of electric mobility using existing infrastructure; development of a national charging station plan; proposal of financing mechanisms for e-mobility investments.
• Long-Term Studies: Assessment of the long-term effects of EV charging on Rwanda’s electricity grid; drafting a national EV battery e-waste management policy.

In 2021, REMA partnered with Rwanda Electric Mobility (REM Ltd) to launch a Retrofit Electric Motorcycles Project in Kigali, supported by UNDP Rwanda through the Poverty Environment Action for SDGs (PEA) Project. This pilot aimed to retrofit up to 30,000 motorcycles, targeting the motorcycle taxi sector.

Another key project is the "Accelerating the Deployment of Electric Motorcycles in Rwanda" (E-Moto) project, supported by the Mitigation Action Facility. Led by the Rwanda Green Fund (RGF) and the Development Bank of Rwanda (BRD), it aims to mobilise over $150 million to boost the supply and adoption of electric moto-taxis, with an anticipated 53,000 e-motos made available during the project's duration.

Incentives and Policy Support

Rwanda is also providing fiscal incentives to support the e-mobility transition. These include tax exemptions on EVs and reduced tariffs for charging infrastructure, covering waived or reduced customs duties, import duties, VAT, and excise taxes. These incentives extend to spare parts, batteries, and charging equipment, making EV ownership more financially accessible for individuals and businesses.

Since July 1, 2025, electric vehicles have enjoyed full tax exemptions, including VAT, customs duties, excise duties, and withholding taxes. EVs, their batteries, and charging equipment remain VAT-exempt until June 2028. Additional incentives include rent-free government land for charging stations and charging tariffs offered at the lowest industrial rate. Rwanda encourages local assembly and manufacturing of EVs, offering a 15% Corporate Income Tax rate, a tax holiday, and exemption from the 5% withholding tax at customs.

Electrifying Public Transport

The government aims to electrify 20% of its bus fleet by 2030, requiring significant investment in power infrastructure, regulatory clarity, and innovative financing. Early initiatives in Kigali have seen private operators deploy e-buses and install charging stations. State Minister in Charge of Infrastructure, Jean de Dieu Uwihanganye, announced that all buses in Kigali should be electric by December 2026.

Addressing Emissions and Health Concerns

The latest National Inventory Report shows that transport contributed 57% of GHG emissions in the energy sector as of 2022, highlighting the need for accelerated transition to electric mobility. In July 2025, REMA introduced new emissions testing requirements for all diesel-powered vehicles, including motorcycles. Health Minister Dr Sabin Nsanzimana urged vehicle owners to test emissions regularly to curb rising respiratory health concerns.

Electric vehicles offer numerous benefits, including lower maintenance costs, reduced environmental impact, decreased dependency on imported fossil fuels, a 17% reduction in GHG emissions, and a 15% annual reduction in oil imports. Rwanda expects Rwf 20 billion in annual savings on oil imports.