The President of the African Development Bank Group, Dr. Akinwumi Adesina, has reaffirmed the Bank’s strong commitment to supporting African entrepreneurs and driving industrial innovation. During a visit to Saglev, a Nigerian electric vehicle assembly and distribution company in Lagos, he emphasised the Bank’s role in championing entrepreneurship on the continent.
Saglev Electromobility Nigeria Limited, located in Ikorodu, Lagos, manufactures electric vehicles from semi-knocked-down components through a technical partnership with a Chinese automobile group. The plant targets both Nigerian and emerging markets, with an annual capacity of 2,500 vehicles on a single shift, expandable to 10,000 on multiple shifts.
Welcoming Dr. Adesina to the facility, Saglev’s Chairman and CEO, Dr. Sam Faleye, recalled the commitment Adesina made during the 2024 Africa Investment Forum in Rabat, Morocco, to visit the company. Adesina was joined by his wife, Mrs. Grace Yemisi Adesina, along with a Bank delegation that included Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialization, and Dr. Abdul Kamara, Director General of the Nigeria Country Department. Faleye shared his personal journey from Nigeria to the United States and back, where he practiced medicine for 28 years before returning to invest in Nigeria’s electric vehicle industry.
During his tour of the facility, Adesina discussed major challenges in Nigeria’s automotive sector, such as fiscal policy, logistics, access to finance, and the absence of local manufacturing for critical vehicle components. The discussions also included topics such as battery technology, charging infrastructure, capacity development, and clean energy investments.
Adesina highlighted the importance of affordable and reliable electricity to reduce production costs for electric vehicle companies. He noted that in the past decade, the Bank has connected over 28 million people to electricity through major investments in energy. He referenced Africa’s vast renewable energy potential, with solar radiation at about 11 terawatts, hydro at 350 gigawatts, wind at 150 gigawatts, and geothermal at 15 gigawatts. According to him, this potential positions Africa as a global leader in renewable energy, critical for powering homes, businesses, and vehicles. He added that while the electric vehicle market is currently valued at \$7 trillion, it is projected to reach \$59 trillion by 2050, placing Saglev in a strategically important sector.
Adesina commended Faleye for his significant personal investment in the company, especially in light of the high cost of borrowing in Africa, which he said is three to five times higher than in other regions. He stated that the African Development Bank offers facilities to de-risk lending and provides lines of credit to Nigerian commercial banks that could support ventures like Saglev.
He also praised the company’s team of young engineers and technicians, noting the quality of technical education in Nigeria and the company’s commitment to gender inclusion among its technical staff.Finally, Adesina acknowledged the vital role of the African diaspora in the continent’s development. He applauded Faleye’s return to Nigeria and his commitment to local investment, highlighting that while Africa receives about \$91 billion in annual remittances, the most powerful contribution from the diaspora lies in their knowledge, expertise, and dedication to the continent.
Source : https://afdb.africa-newsroom.com/
