With the support of Chinese companies, fuel-powered motorcycles that can be seen everywhere on African streets are undergoing a revolution in energy technology.
According to a report by The South China Morning Post on July 12th, as Chinese investors increase their investment in the industry, the billion-dollar electric scooter market in Africa is rapidly shifting from fuel-powered to electric-powered vehicles. Chinese companies not only supply key components such as batteries and motors, but also participate in the construction of infrastructure such as battery swapping networks, promoting the rapid adoption of electric motorcycles in the African market.
In East Africa, motorcycles for taxi services are called "boda-boda", while in West African regions like Nigeria, they are referred to as "okada". These motorcycles are the main mode of transportation for millions of people in Africa. Due to the relatively inadequate public transportation system, motorcycles have long played an important role in urban commuting and commercial transport, thus forming a large two-wheeled vehicle market.
Today, this market is becoming a new growth point for the new energy industry.
Reports indicate that Shanghai investment firm Zengtu Capital recently invested $55 million in Spiro, Africa's largest electric two-wheeled vehicle company. This investment is part of a total financing of $270 million for Spiro. Spiro plans to use the funds to expand its electric motorcycle business, replacing traditional fuel-powered motorcycles with electric ones, and to build battery swapping networks that cover more areas.
Currently, the company has launched over 100,000 electric motorcycles in 7 African countries, and has built more than 2,500 charging stations.
Africa's Largest Electric Two-Wheel Vehicle Provider Spiro's Founder Gupta, Reported by The South China Morning Post
Spiro Founder Gu Puta (Gagan Gupta) said that the company hopes to further improve local production levels, achieving 90% of production value in Africa by next year. Spiro is currently negotiating with two Chinese suppliers on the African continent to manufacture batteries locally. Additionally, key components such as tires, batteries and IoT components are planned for gradual localization manufacturing.
Tires will be produced locally, batteries will be assembled locally, and parts will also be manufactured locally. Guptu said.
According to reports, as the industrial chain becomes more localized, Africa has the potential to shift from mainly exporting raw materials such as lithium and copper in the past to producing products related to new energy technologies.
Gupta believes that Chinese electric vehicle and hardware companies are looking for new areas of growth. As competition in China and Southeast Asia intensifies, Africa is becoming a new focus for their expansion.
He stated that the e-bike market in Africa currently spans between 16 million and 20 million units. It is estimated that this number will grow to between 50 million and 60 million units by 2030, making it one of the most promising markets for the electrification of commercial transportation globally.
"China's strengths lie in its supply chain." Gu Puta said, "Chinese companies are able to provide mature technology and complete industrial chains, while the African market is precisely in need of such capabilities."
Zhang Yufan, co-founder of Zengtu Capital, said that the reason Spiro was chosen for investment is the huge potential of the African electric vehicle market. He believes that there are similarities between the development of Africa's new energy industry and the rise of China's new energy vehicles. The key lies not only in manufacturing vehicles, but also in infrastructure construction such as factories and charging stations.
Currently, more and more Chinese companies are entering the African electric vehicle market. Chinese electric two-wheeled vehicle company Yadea recently launched an electric vehicle brand in Kenya; Tycorun has already provided electric motorcycles and battery swapping technology in several African countries. In addition, companies like Tieling and Kollter are also expanding their business through local partners.
According to reports, for Africa, the development of electric vehicle industry not only means a change in transportation methods, but also provides an opportunity to promote the upgrading of manufacturing industries. With the support of technology, capital, and supply chains provided by Chinese companies, Africa is trying to move away from the model of simply exporting resources and expand into the manufacturing of new energy products.
For Chinese enterprises, Africa's enormous transportation needs are becoming a new growth opportunity, following domestic and Southeast Asian markets.
