Electric motorbike startups jostle for advantage in Africa’s nascent EV sector | Semafor
Summary
The multimillion-dollar moves by Spiro and Roam add color to data that suggests Africas electric vehicle market, estimated to reach $21.4 billion in value by 2027 from under $12 billion two years ago, will be dominated by two-wheelers.Of the nearly 5 million EVs that will be sold in Ethiopia, Kenya, Nigeria, Uganda and Rwanda by 2040, at least 80% will be motorcycles, a 2022 Shell Foundation report analyzed by McKinsey said.Some EV providers in Africa offer other vehicle types like mass transit buses, as BasiGo does in Kenya and Roam plans to roll out there next month. Even in Lagos where the governments 2020 ban was premised on safety and security concerns, residents still depend on motorcycles to navigate thin muddy roads in difficult-to-access suburbs. Food delivery services and leading online retailer Jumia mostly use motorcycles for fulfillment.The challenge for electric bike providers, however, is to affordably sell a product that costs significantly more than what it hopes to replace. In Uganda, Spiro entered an agreement in March with the government to make 140,000 of its bikes and 3,000 battery swap stations available within five years. The company is set to formalize a similar agreement with the Kenyan government in the coming weeks, Samain told Semafor Africa.