Botswana wins exclusive rights to produce Chinese electric vehicles
Having successfully trained over 150 technicians, assembled a semi-knockdown e-mobility SUV, and three buses locally, the Botswana Institute for Technology Research and Innovation (BITRI) is set to enter the automobile market, likely before December.
Undoubtedly, this was a challenging endeavour, as BITRI faced numerous obstacles during negotiations. On several occasions, they were even forced to abandon promising deals at the final stages.
This was largely due to the fact that some of the component source countries had made it clear that they had no interest in manufacturing within the African continent.
In an interview with the Botswana Guardian, BITRI’s Chief Executive Officer, Professor Shedden Masupe, shared that the next significant step is to begin production using the ordered components for the SUVs and buses, which will then be launched into the market.
“It’s important to note that as part of the agreement, we need to start with 50 SUVs and 30 buses,' Masupe explained.
“We’ve already made payments for those components, and they are en route to Botswana, including components for the 30 buses,” he sdded.
Masupe revealed that BITRI has trained a total of 150 technicians. He added that they work with panel beaters, auto-mechanics, electricians and welders who had either done certificate or diploma.
'The training of technicians continues because we need a total of 300, but unfortunately, we will not be able to absorb them, but all the companies around will absorb them as they are bringing in the EVs.'
The launch of the electric car (e-car) on Monday received mixed reactions, with some critics stating that BITRI is merely assembling the vehicles rather than manufacturing them.
Responding to this, Masupe clarified, 'What we often overlook as a country is that all vehicles, regardless of the maker, are assembled.
“Major car manufacturers operate within an ecosystem where different components are produced separately and later brought together at an assembly line.
“Here in Botswana, while we may initially source components from a supplier, the vehicles will be assembled locally.'
Masupe also noted that shipping components from China to Botswana takes around six weeks, though unexpected delays beyond anyone's control could extend that timeframe.
'But if the parts arrive in eight weeks, we should be able to assemble them.'
When asked about the steps Botswana has taken to avoid repeating the failure of the Hyundai plant, Masupe explained that industrial espionage makes it hard to predict competitors' actions.
However, he added, 'As part of our agreements with the companies, anyone wanting to purchase this particular model will have to come to Botswana. We are confident that we have safeguarded our interests”.
Allaying fears on whether it is not risky to buy the e-vehicles with a limit travel distance of 500 kilometres and uncertainties of where they will be filled up, Masupe said parallel to assembling they had to consider the infrastructure associated with the e-mobility including charging stations more especially the fast chargers.
'Each of these vehicles is fitted with its own standard charger that can be plugged in your house and charge the entire night as they are slow if you are starting from scratch.'
He explained that they did a study of where the infrastructure will be established within the country so that they can easily be accessible.
'We have also looked at the fact that if they could be plugged in the grid, they will put in a lot of burden on the BPC grid hence we looked in the places of having them off grid.
“We have even investigated not having them as solar-charged but also as hydrogen fuel sellers technology. We have a partner in Israel who had developed hydrogen fuel to the point where it is 90 – 95 percent cheaper’’.
In discussing the historic project, Masupe explained that it was initially housed within the government enclave. The Ministry attempted to manage it internally, but due to underlying challenges, it didn’t work out. Eventually, the President decided the project needed to be moved to an agency capable of implementing it.
BITRI were tasked with delivering the project for the country with a brief to manufacture an electric vehicle - a daunting task - especially with tight timelines. Faced with such a challenge, BITRI had to think innovatively about how to execute a project of that scale.
Initially, they drafted the project into three phases: capacity building, which was already in place; design and prototyping; and finally, manufacturing. “However, we soon realised that reaching the prototype stage for the electric vehicle would take much longer than expected. So, we redefined the design concept, shifting from 'electric vehicle' to 'e-mobility,' which opened the door for a broader range of electric transport solutions, including motorbikes, boats, or other types of vehicles.'
He added that as part of this approach, they partnered with Aliboats in Maun, while still working on the electric vehicle. The e-boat project progressed quickly.
'We brought in international partners to assist with the design, and the boat was developed swiftly. There were some issues during testing, primarily related to the boat's weight and the need to adjust the motors. But a year ago, after testing in Kasane, the boat was finalised, since there was no water in Maun.'
The second phase involving the electric vehicle was much more challenging. They sought out partners already in the business who were willing to transfer their technology and work with them locally.
When working on a national project, it's crucial to involve local businesses that have relevant partnerships, as this aids in technology transfer and capacity building for the country.
An expression of interest was issued in collaboration with three sister companies: CEDA, BITC, and BITRI, but unfortunately, they didn't receive any suitable responses.
“Eventually, we received a strong proposal from a Zimbabwean company that addressed all our requirements, especially regarding technology transfer.
“However, during final negotiations, we discovered they didn’t possess the intellectual property (IP) or the authorisation to assemble vehicles—they were simply reselling vehicles they had in Zimbabwe.'
Masupe highlighted that Botswana’s Ambassador in China, Dr Batlang Serema, helped BITRI by connecting them with several companies in the e-mobility sector, as China is a global leader in this field.
The BITRI team visited China and met with nine companies. However, many were uninterested in partnering with Botswana due to its small population and limited market size. BITRI was also looking for partners who could help drive local consumption of the vehicles.
Fortunately, two companies—Skywell and CHTC—expressed interest in partnering with BITRI. Both companies produce a wide range of vehicles, from small cars to large buses.
Upon visiting China, the team found that CHTC’s buses and SUVs would likely appeal to the tastes of Batswana. As a result, BITRI decided to work with Skywell for buses and CHTC for smaller vehicles.
Initially, BITRI wanted to focus on buses, as they are easier to assemble compared to smaller vehicles with more complex components. However, the government insisted on including smaller vehicles in the project.
What stood out about these companies was their willingness to transfer their IP and negotiate terms for sharing any new IP that might be developed jointly in the future.
They were also open to sourcing components from local manufacturers in Botswana, which aligns with the government’s goals of creating value chains within the country.
The BITRI technical team had also visited the US and Germany to explore potential collaborations before ultimately choosing China as their partner. The Chinese companies promised to support BITRI in setting up operations.
Notably, CHTC had already set up a factory in Uganda, although it produced diesel buses rather than electric vehicles. This experience reassured BITRI that the company knew how to work effectively within African markets.
Currently, BITRI has entered into agreements with the Chinese partners, procured tools for vehicle assembly, and started training technicians.
In parallel, they have begun buying components in bulk to solidify their agreements in the African market. They have already imported one semi-knockdown SUV and three semi-knockdown buses.
He said recently Chinese experts arrived to train BITRI’s technicians. These technicians had previously undergone training in electric vehicle assembly using smaller electric vehicles, where they learned to disassemble and reassemble them at BITRI centres in Francistown and Kanye.
While the technicians were already familiar with the basics, the recent training provided them with specialised knowledge for this specific project.