The drive towards sustainable transportation in Africa has received a significant boost with a USD 50 million debt facility agreement aimed at accelerating the continent’s transition to greener mobility solutions. The landmark deal, signed by Spiro, a leading electric vehicle (EV) company, and the African Export-Import Bank (Afreximbank), marks a pivotal development in Africa’s e-mobility revolution.
Major milestone in sustainable transport
The agreement was formalised at the Africa CEO Forum in Kigali, Rwanda, with Spiro CEO Kaushik Burman and Afreximbank Executive Vice President Kanayo Awani leading the signing ceremony. This funding is set to enhance Spiro’s operations significantly by expanding its network of automated swap stations and introducing new electric bike models, thereby increasing the accessibility and convenience of green mobility solutions across the continent.
Burman emphasised the transformative potential of the deal: “This partnership with Afreximbank is a pivotal development for Spiro. The USD 50 million debt facility will significantly enhance our operational capabilities and help us expand our footprint to more African countries. It’s a testament to the confidence in our business model and our contribution to sustainable development in Africa.”
Expanding e-mobility infrastructure
The funds from the new agreement will be directed towards bolstering Spiro’s infrastructure. This includes the expansion of their network of automated swap stations, which are crucial for the convenience and efficiency of electric vehicles, especially in urban areas. These stations allow for quick battery swaps, reducing downtime for EV users and promoting the adoption of electric bikes as a viable mode of transport.
Spiro has already made significant strides in the region. Last August, the company secured a USD 63 million debt funding round with Société Générale, aimed at expanding its operations in Benin and Togo. The latest funding deal places Rwanda at the forefront of the growing electric vehicle sector in Africa, which is projected to grow from USD 11.94 billion in 2021 to USD 21.39 billion by 2027.
Rwanda’s commitment to e-mobility
Rwanda is positioning itself as a leader in the African e-mobility sector. Last year, the country partnered with Kenya’s BasiGo and AC Mobility to introduce electric buses in Kigali. This initiative is part of a broader government plan to scale up Kigali’s public transport fleet and convert 20% of the public bus fleet to electric by 2030. These efforts are aimed at reducing the city’s carbon footprint and enhancing the sustainability of its public transportation system.
Awani commented on the broader impact of the partnership: “This partnership affirms our commitment to fostering sustainable innovation and green technologies in Africa. This collaboration reaffirms our belief in the power of innovation to create a better world for future generations.”
A growing e-mobility ecosystem
Spiro is one of the largest electric vehicle companies in Africa, boasting a fleet of over 14,000 bikes and conducting over 9 million battery swaps across five countries. The company is committed to reducing environmental impact and enhancing urban mobility by building an integrated EV ecosystem in Africa. This includes partnering with various stakeholders to establish a comprehensive range of charging infrastructures, including battery swapping and direct charging stations.
Operating in countries such as Tanzania, Benin, Nigeria, Uganda, Togo, Morocco, Egypt, and Kenya, Spiro is at the forefront of the e-mobility revolution on the continent. The company’s efforts are aligned with the growing demand for sustainable transportation solutions, driven by the need to reduce carbon emissions and combat climate change.
Future prospects and impact
The new funding from Afreximbank is expected to catalyse further developments in Africa’s e-mobility sector. By expanding its infrastructure and introducing new electric vehicle models, Spiro aims to make green mobility solutions more accessible to a broader population. This not only addresses environmental concerns but also provides a reliable and efficient mode of transportation for urban dwellers.
The success of Spiro’s initiatives could serve as a model for other regions, demonstrating the feasibility and benefits of adopting electric vehicles on a larger scale. As Africa continues to urbanise and develop, sustainable transportation solutions will be critical in ensuring a greener and more sustainable future for the continent.
The USD 50 million debt facility agreement between Spiro and Afreximbank represents a significant step towards achieving these goals, showcasing the potential for innovation and collaboration in driving Africa’s e-mobility revolution.