Motoring with Bob Roco ROMEO: The cost factor: How EVs compare with ICEs

By Jerry HALM

The most common question any prospective EV buyer asks is a simple one: Does it actually save me money? In Ghana, the answer is nuanced — but increasingly, it is leaning towards “yes”. To understand why, it helps to look beyond the sticker price and consider the full picture of vehicle ownership.

Purchase price: EVs cost more upfront

There is no sugarcoating the initial cost gap. According to market information on EV pricing in Ghana, electric vehicles can cost more upfront than comparable petrol vehicles — for example, one analysis notes that a typical EV in Ghana may cost about 13.5% more than a petrol equivalent like a Toyota Corolla. Entry-level EVs available in Ghana start around $21,000, while popular models from brands such as BYD and Hyundai sit in the mid-range.

The Government’s eight-year import duty waiver — introduced under the National Electric Vehicle Policy — has begun to close this gap, but a meaningful price premium persists for now. For a country where over 90% of vehicles are second-hand ICE imports, the upfront cost difference remains a significant barrier for the average buyer.

Fuel vs. Charging: Where EVs win decisively

The operational cost story is where EVs make a compelling case. Research by Ghana’s Energy Commission found that fuelling an ICE vehicle costs five times more per mile than charging an equivalent EV.

A separate academic study comparing the Hyundai Kona Electric with its petrol counterpart found that, assuming 24,000 km of annual travel, the ICE version costs roughly $2,535 in fuel annually compared to approximately $480 to charge the EV. For daily commuters and high-mileage drivers, this difference translates into substantial annual savings.

Maintenance costs add another advantage. EVs have far fewer moving parts than ICE vehicles — no oil changes, no timing belts, no exhaust systems to service. Global studies have shown that ICE maintenance costs run way higher than those of comparable EVs. For a small business owner running a fleet or a commercial driver logging tens of thousands of kilometres a year, this is not a marginal benefit — it is a transformative one.

The break-even question

The central financial question for any EV buyer in Ghana is: how long before the savings outweigh the higher purchase price? Under typical conditions (high interest rates, import duties), EVs don’t achieve total cost parity with ICE vehicles until later in ownership.

However, if financing costs for EVs are reduced (e.g., interest rate lowered from 23 % to 10 %), cost parity with comparable ICE vehicles can occur around the seventh year of ownership. With the government’s import duty waiver, that timeline shortens to around four to five years. For financing solutions that reduce borrowing costs in favour of EVs — such as those offered by Ecobank Ghana in partnership with DriveEV — parity can arrive even sooner.

There is an important caveat: rising electricity tariffs could affect these calculations. Ghana’s electricity prices are among the highest in West Africa, and any significant increase would reduce the EV charging advantage. This underscores the importance of solar-based home charging solutions as a hedge, and a growing number of EV owners are already exploring this option.

Two- and three-wheelers: Already the better deal

It is worth noting that for electric two- and three-wheelers — the segment where companies like Somoco have long operated — the economics are already unambiguous.

Research confirms that electric motorcycles and tricycles reach cost parity with their petrol counterparts by the second year of ownership, and are outright profitable to own thereafter. This existing proof point for the EV value proposition, familiar to thousands of Ghanaian traders and commuters, may smooth the path for wider four-wheel EV adoption.

The verdict

The cost comparison between EVs and ICEs in Ghana is not a simple one-line answer — it depends on how far you drive, how you finance your purchase, where you charge, and how long you plan to keep the vehicle. But the trajectory is clear.

As purchase prices fall with economies of scale and government support, as charging infrastructure expands, and as financing becomes more accessible, the financial case for EVs will only strengthen. For buyers who can absorb the upfront premium and are in it for the long term, the numbers already tell a compelling story. The future of motoring in Ghana may cost a little more at the dealership — but considerably less on the road.

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