Across Africa, informal movement and public transport form the backbone of daily life. In Africa, “public transport” doesn’t just mean government-run buses or trains, but an ever-evolving ecosystem of minibuses, okadas, shared taxis, informal stops, and circuits that millions rely on daily.
Most Africans don’t own cars. They navigate commutes with whatever options are available and affordable, frequently walking long distances or patching together several legs of informal transit, especially as fuel or fare hikes force adjustments in daily behaviour.
The last decade saw the rise of ride-hailing and ride-sharing startups, including Uber, Bolt, Shuttlers, and numerous local upstarts, eager to “disrupt” these informal networks. But the scalability challenges have proved daunting. While companies like Uber and Bolt established early footprints, thousands of smaller ride-hailing and ride-sharing platforms have fizzled. In Nigeria, for instance, over the last decade, an estimated 2,500 local ride-hailing alternatives have launched and closed shop due to a lack of network effect, a lack of demand, low barriers to entry, high competition, and an unregulated market.
The case for E-Mobility in meeting Africa’s growing transport needs
While Africa’s urban mobility is defined by informal transit, patchwork public systems, and a persistent struggle against high costs and poor infrastructure, experts believe the electric vehicle (EV) segment could be a practical, transformative alternative for the continent.
Node inline-image-caption
As Briter data shows, mobility has drawn more than $1.4 billion in funding between 2015 and 2024, and EV-focused businesses consistently rise to the top of funding charts. While consistent power access and charging infrastructure continue to weigh on EV rollout, momentum is building across some key African markets. Kenya, Rwanda, and Ethiopia, for instance, have shown how progressive taxation, cash incentives, and outright bans on new internal combustion engine (ICE) vehicle imports can catalyse a rapid shift toward green mobility.
Today, Africa’s EV market is valued at $17.4 billion and expected to surpass $28 billion by 2030, propelled by a doubling of electric car sales in key markets last year. Still, adoption is led by two- and three-wheelers, along with fleet buses, reflecting demand for affordable, flexible transit.
Node inline-image-caption
Startups such as Spiro, BasiGo, Roam, Ampersand, and Max lead the charge, deploying thousands of electric two and three-wheelers, rolling out bus fleets, and building battery-swapping networks that tackle range anxiety, one of Africa’s biggest mobility hurdles.
“Ownership and operation of vehicles (especially two and three-wheelers) create micro-entrepreneurs and employment, according to Omogui. He believes asset financing can boost this segment, especially as EVs enable faster break-even via lower running costs,” said Eghosa Omogui, Principal at EchoVC, a VC firm that backed Nigerian ride-sharing platform, Shuttlers. “Long-range trucks, four-wheelers and consumer vehicles are not attractive until infrastructure improves; you need geographically dispersed infrastructure networks, which just aren’t there yet.”
The preference for electric two and three-wheelers is not limited to passenger and commercial transport; even business-to-business logistics operations opt for smaller EVs, as their lower running costs and the rise of asset-financing models make them economically attractive in environments where charging infrastructure remains sparse. Logistics services, especially last-mile delivery startups like Fez Delivery, are increasingly favouring electric two-wheelers for their fleets, mirroring the broader trend among everyday consumers and micro-entrepreneurs who find these vehicles more affordable and adaptable to Africa’s urban landscape.
While last-mile delivery startups like Oxdelivers are testing four-wheeler EVs, adoption remains slow due to infrastructure gaps. Two-and three-wheelers continue to drive Africa’s green mobility transition across both consumer and logistics markets.
EVs in Africa are new, but Government policy could unlock mass adoption
For all the optimism, Africa’s EV sector is at an early stage, and hurdles are aplenty. Only a handful of countries — e.g., Rwanda with its gasoline bike ban in Kigali — are legislating for mass EV adoption on the continent. There is also a lack of reliable grid energy, which makes building charging and swap infrastructure slow and costly. In fact, Africa has fewer than 2,000 public charging stations, a stark contrast to regions like China, which has over 3.2 million public charge points as of July 2024 and India, which has installed about 29,000 public charging stations nationwide.
Building each charging site on the continent also takes substantial effort. For example, BasiGo’s CTO confirms that establishing a new charging site takes 6 to 9 months, with the company currently running three operational sites and planning to expand to as many as 16 chargers in Nairobi. This stark difference highlights both the rapid EV infrastructure rollout in Asian giants and the urgent need for faster development in Africa
Even with falling EV costs, mass market adoption depends on asset financing, pay-per-use models, and creative credit options. Drivers and operators need vehicles to be cheaper not just than new gasoline vehicles, but often even cheaper than second-hand ones. And then there is the chicken-and-egg dilemma where investors hesitate to build infrastructure without enough EVs, and customers hesitate to buy EVs without infrastructure.
Most local EV manufacturers also often focus too much on selling vehicles, with not enough investment in after-sales support and trained technicians for EVs. This gap, according to Ayodeji Audu, a startup consultant and founder of Reown, could set back the market. Audu also calls for governments to set standards so any EV owner can charge or service their vehicle at any station, akin to buying fuel anywhere. Without standardisation, early adopters face poor experiences, which could set the market back.
Node inline-image-caption
For startups that have been first movers in Africa’s E-mobility sector, raising funding has been challenging, primarily due to the high capital requirements associated with electric vehicles. “Raising capital is tough; impact alone isn’t enough. You must show strong unit economics. A viable business model and supportive regulation are prerequisites,” said Jonathan Green, CFO of BasiGo.
Most founders, investors, and industry stakeholders agree, however, that government policy has the potential to unlock mass adoption. The ability of electric vehicle businesses to scale in Africa is closely tied to policy decisions, particularly fiscal measures, taxation, and fuel subsidy reforms that create a level playing field, Green notes. “Africa needs policies similar to India and Indonesia: direct cash incentives for buyers, scrappage incentives, production-linked manufacturing incentives, and mandates like Rwanda’s ban on new gasoline bikes in Kigali. Without demand-centric and supply-side incentives, EVs will stay niche,” said Kaushik Burman, Spiro’s CEO.
For African e-mobility, full-stack solutions offer realistic gains
While broader government policy could accelerate the adoption of electric vehicles across Africa, some startups and early adopters are already making significant strides. Business models that combine manufacturing, financing, and charging, exemplified by startups like Spiro and BasiGo, are currently seen as solutions that work on the continent. Their vertical integration and battery-swapping networks address range anxiety and inspire investor interest.
“To have EVs adopted at scale, you need to solve all pain points at once, from vehicle financing to servicing, and charging. Neither Original Equipment Manufacturers (OEMs), banks, nor oil companies can offer that alone. In early markets, someone must take on all three. That’s our approach,” says Jonathan Green, BasiGo’s CFO.
BasiGo: Launched in 2021, BasiGo targets a different market niche: urban and intercity public transport with electric buses. Its unique value proposition lies in its Pay-As-You-Drive (PAYD) subscription model, allowing operators to bypass prohibitive upfront costs. Under this scheme, clients pay per kilometre for the bus, battery, charging, maintenance, insurance, and roadside assistance, all bundled into a transparent fee structure. BasiGo has sold 35 buses to 11 cooperatives in Nairobi. The company plans to assemble 1,000 vehicles in three years; so far, it has assembled fewer than 10. By removing capex barriers, they accelerate electric bus adoption for fleet managers who may otherwise struggle with financing and infrastructure. The company’s model relies on close operational partnerships, sophisticated digital tracking tools, and local assembly supported by imported battery technology, largely from CATL, another Chinese market leader in LFP cell technology.
Spiro: With over 27 million gasoline motorbikes across Africa, Spiro (with operations across six African countries) is betting that it can improve mobility across the continent, especially in the two- and three-wheeler segment by exchanging old bikes for electric models. The startup distinguishes itself through a high-volume, pan-African expansion of electric motorcycle fleets backed by subscription and asset financing. Riders pay a fixed daily fee that covers motorcycle use, battery swapping, maintenance, and insurance, making capital access simple and daily operations predictable for micro-entrepreneurs. Spiro’s aggressive market entry is enabled by strong government partnerships and significant venture backing (the startup has raised $178 million since it launched), allowing it to quickly establish swap stations and assembly plants. Its model is designed for driver inclusiveness, leveraging partnerships with asset financiers and mobile money networks to democratize access, especially vital for regions with low banking penetration. The company’s business approach prioritises scalability through regional manufacturing hubs, broadening its presence to countries like Nigeria, Benin, Kenya, and Togo. The startup claims to have deployed over 40,000 bikes, 650 battery swap stations, and 100,000 batteries, supporting more than 21 million swaps and 600 million kilometres travelled to date. Spiro partners with Ace Green Recycling for battery recycling and circularity, with most battery components sourced in collaboration with international (mainly Asian) suppliers. Its swap batteries are predominantly LFP chemistry.
Ampersand: Founded in 2016, Ampersand started as an EV infrastructure company that built a network of 27 battery-swap stations around Kigali in its early years. What sets the company apart from other players is its razor focus on the commercial motorcycle taxi segment in East Africa, particularly in Rwanda and Kenya. Ampersand’s bikes make up roughly 70% of all registered electric motorcycle taxis in Rwanda, one of Africa’s smallest countries. So far, the company has sold over 2,200 bikes in Rwanda. Its business model is centred on operational efficiency for motorcycle taxi drivers, providing electric bikes and proprietary battery-swapping infrastructure. By enabling rapid battery swaps, Ampersand drastically reduces driver downtime. The company’s “fuel-and-go” convenience, enabled by dense swap station networks and custom battery technology, is further complemented by retail partnerships and financial products for vehicle financing. This customer-centric, vertically integrated model provides strong competitive differentiation and creates high switching costs for incumbent gasoline fleets. Ampersand sources prismatic LFP battery cells from BYD, a Chinese global leader. The company purchases these cells and assembles motorcycles locally, aiming to deploy 40,000 units by 2026 in both Rwanda and Kenya.
What do investors look for in Africa’s e-mobility startups?
As Ampersand, BasiGo, Spiro, and other EV startups across the continent lead the way for investments, investors are looking to make more E-mobility bets across the continent. “Mobility in Africa is less crowded when compared to fintech. B2B /B2B2C EV adoption, logistics, last-mile delivery, and cross-border asset financing have the most upside,” said Uwemedimo Uwemakpan, Head of Investment at Launch Africa, one of the VC firms that backed Gozem, a pan-African super app that offers transportation, logistics, and ride-hailing services.
Asset-financed models: Investors who spoke to Briter have a preference for well-understood, credit-backed models that banks and DFIs can fund and de-risk. Asset-financed models for vehicles (especially two/three wheelers and fleet buses) are prized because their cash flows are predictable, allowing for easier syndication and collateralization. “Lenders and banks understand credit-backed models better. They can measure and predict risk. Compared to informal fleet managers or rural logistics, asset-financing platforms are easier to regulate, get approvals, and attract international investors,” notes Uwemakpan.
Pan-African scalability and local context adaptation: Models must show clear paths to cross-border scale (not just deep penetration in a single market) and demonstrate understanding and adaptation to local regulatory, economic, and seasonal realities. “We're not just investing because we want you to go very deep, which is good, but there has to be that potential of Pan African expansion, or to be a potential acquisition target for some of the bigger folks. Obviously, it has to be B2B2C in terms of how you are serving customers. Because for us, that's very important,” Uwemakpan notes.
Africa’s e-mobility market: learning from India, chasing China
While Africa’s e-mobility market continues to grow (the e-mobility market is expected to expand to $28 billion by 2030), it remains small compared to other emerging markets. Electric cars make up about 3% of new sales on the continent. In stark contrast, China dominates globally, with 44% of new light-duty vehicle sales being electric in 2024, while current EV penetration in India is estimated at 3–6%, led by two- and three-wheelers. (India’s EV production is up 140% year-over-year, and the government has a target of 30% market share by 2030.)
Africa’s leading players also remain reliant on imported components for key battery and drivetrain technology, usually from China’s BYD, CATL, and other Asian giants. While some local assembly is scaling up (e.g., Spiro’s Nigeria plant, Ampersand’s Nairobi expansion), the battery is often produced overseas. Regional EV companies have innovated primarily around service, infrastructure, financial inclusion, and operating models rather than manufacturing or raw material supply chains. For instance, pay-as-you-drive and subscription-led schemes (pioneered by Basigo and Spiro) have few parallels in Indian or ASEAN bus and two-wheeler fleets, where asset leasing, outright purchase, or direct battery ownership models dominate.
While Africa remains far behind China in both scale and infrastructure, its market dynamics and challenges more closely mirror India’s, particularly in the areas of affordability, battery production, and the critical need for supportive government policy. Globally, EVs are now capturing a quarter of light-vehicle sales outside China, with the gap narrowing each year as regions—from Latin America to Southeast Asia—pursue their own green mobility ambitions shaped by tailored policies, industrial strategies, and the need for wide-reaching infrastructure upgrades.
One persistent advantage for Africa’s e-mobility startups lies in their creative response to infrastructure challenges and fragmented market demand, using battery swaps, digital fleet management, and mobile money integration to sidestep the limitations faced by more asset-heavy Asian or LatAm players.
Node inline-image-caption
