Global Markets
Home›Global Markets›Emerging Markets›Chinese investors fund Africa's shift from petrol bike…
Chinese investors fund Africa's shift from petrol bikes to electric
The financing round totals US$270 million and is backed by Impact Fund Denmark, Equitane, and the Fund for Export Development in Africa.
Motorcycle taxis remain a key way millions get around across Africa, with vehicles commonly called boda-bodas in East Africa and okadas in Nigeria and parts of West Africa. Now, Chinese investors are backing the continent's two-wheeler market as it moves away from petrol toward electric power, according to SCMP Economy.
The funding provides essential components and batteries to support local assembly, while also helping build infrastructure such as battery-swapping networks to reduce friction in adopting electric bikes. The effort is part of a US$270 million financing round backed by Impact Fund Denmark, Equitane, and the Fund for Export Development in Africa.
Spiro, the company using the capital, plans to scale its mission to replace petrol-powered motorcycles with electric bikes and to develop a continent-wide battery-swapping network. SCMP Economy says the deal is also intended to bring in Chinese suppliers with manufacturing capacity and technology.
The article adds that access to Chinese sourcing and manufacturing is meant to help the industry grow quickly while avoiding supply chain bottlenecks.