Sustainable Urban Mobility: Unlocking Investment Opportunities in Electric and Shared Transportation in Developing Markets

Accelerating the Transition to Sustainable Urban Mobility

Urban centers around the world are rapidly embracing sustainable transportation, propelled by climate concerns, technological advancements, and the pressing need to combat congestion and pollution in fast-growing cities. Emerging economies are at the forefront of this transformation, attracting significant investment in electric and shared mobility solutions that align with environmental objectives. From solar-powered minibuses in Africa to government-backed car-sharing programs in Asia, the intersection of innovation, infrastructure, and policy is reshaping how people move—and opening new investment opportunities.

Electric Vehicle Infrastructure: Driving Decarbonization

Developing robust electric vehicle (EV) infrastructure is central to advancing sustainable transport in emerging markets. In South Africa, the introduction of the eKamva electric minibus taxi—a 15-passenger vehicle with a 200-kilometer range—marks a significant milestone in reducing emissions from informal transit. Spearheaded by GoMetro, this initiative integrates charging stations and a digital platform for fleet management, cutting operational expenses by 40–70% compared to traditional diesel models. Ghana’s Solar Taxi project, which assembles EVs and utilizes solar-powered hubs, has grown into one of the continent’s leading EV manufacturers, showcasing the potential of solar-fueled mobility in sun-rich regions.

These advancements are bolstered by global funding trends. Major institutions like the World Bank Group and the Asian Development Bank are channeling substantial resources into EV infrastructure, recognizing its importance for reducing emissions and strengthening energy independence. By 2034, the smart transportation sector in emerging markets is expected to surge from USD 136.05 billion in 2024 to USD 456.92 billion, fueled by the push for electrification and modernized energy grids.

Shared Mobility and Car-Sharing: Transforming Urban Transportation

Shared mobility options—including car-sharing and micro-mobility—are gaining momentum as affordable, eco-friendly alternatives to private car ownership. In India, supportive government policies have accelerated EV adoption, resulting in higher consumer satisfaction than in Indonesia or Nigeria. This progress is attributed to incentives, tax breaks, and a comprehensive plan for expanding charging infrastructure, with a target of 30,000 public EV charging stations by 2030. Conversely, Indonesia’s goal of reaching 2 million electric cars by 2030 is challenged by low EV adoption rates and insufficient infrastructure.

Mobility hubs are also encouraging car-sharing uptake, as seen in southern Germany, where improved access to shared vehicles has led more residents to give up personal cars. In emerging economies, integrating car-sharing with EVs and public transit is crucial. For example, Argentina’s removal of import tariffs on affordable electric and hybrid taxis has made these vehicles more accessible, while collaborations with companies like BYD and Shenzhen DiDi are expanding electric fleets.

Policy Innovation and Systemic Change

Effective policy frameworks are essential for enabling sustainable mobility. Emerging markets are increasingly relying on public-private partnerships to speed up infrastructure development. India’s battery-as-a-service approach, for instance, lowers upfront costs for informal sector workers, addressing concerns about range and affordability. In sub-Saharan Africa, pilot projects using solar photovoltaic systems and stationary storage are helping to reduce grid strain, with one Johannesburg initiative cutting grid demand by 66% per taxi.

Regulatory measures such as carbon pricing and clean-air zones are also influencing energy consumption patterns. As of 2024, 75 carbon pricing programs worldwide affect 24% of global emissions, encouraging industries to shift to cleaner alternatives. Cities like London and Beijing have established low-emission zones, gradually phasing out conventional taxis and providing clearer regulatory guidance for operators.

Investment Prospects and Market Outlook

The shared mobility sector is forecasted to expand at a compound annual growth rate of 12.5%, reaching USD 768.2 billion by 2033, driven by urbanization and digital integration. Investments in solar-powered minibuses and car-sharing initiatives are particularly promising. Projects like South Africa’s eKamva and Ghana’s Solar Taxi demonstrate the scalability of solar-based transport, while Argentina’s policy-driven EV expansion highlights the importance of regulatory support in market development.

Development Finance Institutions (DFIs) play a crucial role in financing these transitions. The World Bank’s Climate Action Plan and the Asian Development Bank’s focus on sustainable infrastructure are directing capital toward projects that support net-zero ambitions. Additionally, declining costs for solar technology and EVs are making clean mobility solutions more viable, even in areas with less reliable electricity grids.

Overcoming Obstacles and Looking Ahead

Despite notable progress, significant challenges remain. In countries like Ghana, frequent power outages—locally known as "Dumsor"—pose obstacles to electrification. Accurate forecasting of energy needs and the deployment of decentralized solutions such as solar mini-grids are vital to bridging these gaps. Furthermore, regulatory systems must evolve to keep pace with the rapidly changing landscape of shared mobility, ensuring fair access and efficient operations.

Conclusion

Emerging markets present a dynamic frontier for sustainable urban mobility investments. Innovations such as solar-powered minibuses, policy-driven car-sharing, and data-centric traffic management are not only cutting emissions but also building resilient infrastructure for tomorrow’s cities. As development banks and private investors increasingly align with climate objectives, the coming decade is poised to witness a wave of transformative projects that will redefine mobility across the Global South—turning today’s challenges into opportunities for sustainable growth.