Connect with us

Business

New report shines spotlight on e-mobility innovators unlocking access to the US$3.65bn motorcycle market

Published

1 year ago

on

motorcycle market

More than 90% of electric motorcycles sold in sub-Saharan Africa are imported from China and India and are not built for African conditions

JOHANNESBURG, South Africa, March 29, 2023/APO Group/ — 

Electric motorcycles are set to be a dominant force in sub-Saharan Africa’s sustainable mobility transformation, but continued investment in start-ups tackling barriers across the value chain will be critical to maximise the full potential, says a report recently released by the Powering Renewable Energy Opportunities (PREO) (https://www.PREO.org) programme.

Two-wheelers are quicker and more easily manoeuvrable than four-wheeled vehicles, especially across sub-Saharan Africa, where countries often have poor-quality roads. Motorcycles also provide stable income opportunities. The Charging Ahead – Accelerating e-mobility in Africa (https://apo-opa.info/40Es1zQ) report from PREO outlines the market opportunity for e-motorcycles to become a driving force in the African e-mobility sector as, according to analysis by Mordor Intelligence, the market for motorcycles in Africa was worth US$3.65bn in 2021, and is projected to grow to US$5.07bn by 2027.

However, to accelerate progress in the e-mobility sector and meet the demands of a rapidly expanding customer base for two-wheelers, there are a number of challenges that need to be addressed. These include improving the availability of durable hardware, reliable charging infrastructure and access to high-quality battery solutions.

According to industry estimates, more than 90% of electric motorcycles sold in sub-Saharan Africa are imported from China and India and are not built for African conditions. Poor grid infrastructure means baseline electricity access is not reliable enough to support renewable battery recharge networks, and the electricity supply is weak. In addition, high-quality battery suppliers prioritise global buyers able to order at volume, which leaves small start-ups out of the picture.

The report examines how three PREO-supported companies – Roam (previously Opibus), Mobile Power and Zembo – are successfully addressing each of these barriers, and together are providing the solutions needed to support an enabling ecosystem to accelerate progress across the entire e-mobility sector.

Durable hardware – Roam is a Swedish-Kenyan company that manufactures robust electric motorcycles in Kenya. The company is demonstrating that with the support of local manufacturing and assembly, the final price of electric motorcycles can be lowered to compete with ICE (internal combustion engine) vehicles while also customising the product to local conditions. Roam has now acquired the capacity to fully design the vehicles and manufacture 35% of them in-house with a goal to reach 70% in the next three to five years.

The company plans to expand beyond Kenya to other African markets through strategic partnerships, raise US$17.5 million in equity and debt for working capital and hopes to supply Uber with 3,000 electric motorcycles for its delivery services across sub-Saharan Africa.

Reliable charging infrastructure – Ugandan company Zembo has developed a solution to enable the roll-out of e-motorcycles in areas with weak and unreliable access to electricity by using solar energy to charge the batteries.

Investing in e-motorcycles provides a path to more sustainable and equitable growth across African communities and addresses the urgent issue of climate change

In Uganda, Zembo operates 27 battery-swap stations for electric motorcycles, considered one of the largest networks in the region. It sells motorcycles to taxi operators on a pay-as-you-go basis and provides batteries-as-a-service through its battery-swap network. 73% (personnel cost – 55%, rent – 18%) of the monthly cost of operating a swap station is fixed cost in nature, delaying profitability and slowing down expansion.

Zembo’s scale-up strategy involves expanding its network using risk-sharing mechanisms such as franchisee models, and reducing personnel costs by deploying automatic swap cabinets. The company is also installing solar power solutions for off-grid areas and hybrid power for on-grid areas with weak or unreliable grids. This will enable batteries to be charged even in areas that are not on the grid and during grid blackouts. Zembo plans to expand its fleet to more than 2 000 motorcycles and 60 swap stations by 2025.

High-quality battery solutions – Mobile Power operates in Sierra Leone, Liberia, the Democratic Republic of Congo and Nigeria and is tackling the scarcity of high-quality battery technologies for small-scale businesses. The company has developed clean energy storage products (lithium-ion batteries) that it offers to businesses and individuals through a rental model. Since 2017, Mobile Power has grown its rental business to 500,000 rentals every month and is gaining 2,000 new customers every week at its peak growth periods.

Mobile Power is now replicating its rental model in the mobility sector and generator replacement sector by leveraging the same technology components: batteries, battery management systems and battery charging hubs. The company has now reached a stage whereby it can manufacture robust batteries tailored to African conditions at scale for its in-house use and satisfy the demand of its electric mobility peers. Mobile Power’s pay-per-use battery-swap model enables customers to access the service based on their needs.

Jon Lane, PREO Programme Director, comments: “Investing in e-motorcycles provides a path to more sustainable and equitable growth across African communities and addresses the urgent issue of climate change. Through our work with several start-ups, we have identified opportunities for a full ecosystem of solutions that address challenges across the value chain. We hope this report demonstrates the impressive progress being made by companies in the e-mobility sector and will act as a call for investors, policymakers and partners to engage and collaborate to help meet the scale of the challenge.”

PREO (https://www.PREO.org) is funded by the IKEA Foundation (https://IKEAFoundation.org) and UK aid (https://TEA.CarbonTrust.com) (via the Transforming Energy Access platform), and is delivered by the Carbon Trust (https://www.CarbonTrust.com) and Energy 4 Impact (https://Energy4Impact.org). To date, it has supported 27 productive-use-of-energy enterprises across 11 countries in sub-Saharan Africa, four of which are in the e-mobility sector.

Click here to download PREO’s Charging Ahead – Accelerating e-mobility in Africa report: https://apo-opa.info/40Es1zQ

Jono West, co-founder and Chair of Mobile Power: “PREO’s support has been incredibly valuable to us for de-risking our battery technology and business model. It has enabled us to grow and increase the rate of scale for the e-mobility business and capture learnings that now form the basis of future technology solutions we have in the pipeline, even beyond e-mobility. As a result of this PREO project, we are now in discussions with several new partners across the value chain, which will be announced in due course.”

Étienne Saint-Sernin, co-founder of Zembo: “We’ve already proved that our business model is profitable in urban on-grid areas. Now, this PREO-co-funded project will give us the opportunity to prove that our solar-powered solution is viable and replicable in off-grid areas as well. We’ll then be in a strong position to unlock private investments to expand to other African countries.”

Filip Lövström, co-founder and Chief Executive Officer of Roam: “With the support from PREO we were able to accelerate and validate our product-market fit, refine our business models and design our next-generation electric motorcycle that is now ready to scale. PREO’s grant subsidised our early-stage production costs for pilots, and ultimately helped us reach commercialisation of a product that puts more earnings into end-users’ pockets and creates a positive environmental impact.”

Distributed by APO Group on behalf of Powering Renewable Energy Opportunities (PREO).

Related Topics:
Continue Reading
Advertisement

Business

African Energy Week (AEW) 2024 to Navigate the Future of Oil & Gas Financing Amid Energy Transition

Published

15 hours ago

on

September 9, 2024

By

Kinetiko Energy

The African Energy Week: Invest in African Energy conference will gather industry leaders to explore oil and gas financing tools and strategies in the age of the energy transition

CAPE TOWN, South Africa, September 9, 2024/APO Group/ — 

As the global energy landscape shifts towards cleaner and more sustainable sources, Africa’s oil and gas sector faces challenges in securing financing for upstream projects. Nearly $3 billion was mobilized toward African energy projects in 2023 – with a significant portion directed towards natural gas – according to the African Development Bank (AfDB). As global markets evolve, African financing strategies must adapt to support both economic growth and long-term sustainability.

The Financing Upstream Oil & Gas in the Age of Transition session at African Energy Week (AEW): Invest in African Energy will explore how African oil and gas projects are securing financing in a rapidly changing landscape. The session will unpack evolving regulatory frameworks, innovative financing models and the balance between traditional fossil fuel and renewable energy investments. Moderated by Laura Sima, Director of S&P Global Commodity Insights, the panel will feature Trafigura Group Head of Upstream Finance Matthieu Milandri; Africa Finance Corporation Vice President Taiwo Okwor; and Project & Export Finance Africa Managing Director & Regional Head Fathima Hussain.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

To address shifting investment priorities, a dedicated Africa Energy Bank (AEB) has been launched by the African Petroleum Producers Organization and African Export-Import Bank. To be based in Abuja, the AEB aims to bridge Africa’s infrastructure funding gap and accelerate the development of energy projects across the continent. As a supranational institution, the AEB will provide critical funds for emerging oil and gas projects across Africa, supporting the sector amid the global energy transition, and is currently open for signature by prospective member states.

African natural gas projects have been a leading destination for foreign investment, as gas is considered a cleaner alternative and even labeled as “green energy” in the EU. Projects like Senegal and Mauritania’s Greater Tortue Ahmeyim LNG – led by bp and Kosmos Energy – have secured $4.8 billion in investment from a mix of equity from the IOCs and debt financing supported by multilateral banks. Blended finance – combining both public and private sector capital – has emerged as a critical solution to mobilizing large-scale financing in Africa’s energy sector. The TotalEnergies-led Mozambique LNG project represents a total post-FID investment of $20 billion, of which $14.9 billion comes from senior debt financing including a blend of loans from export credit agencies, multilateral finance agencies like the International Finance Corporation and the AfDB, and commercial banks.

Significant capital is also flowing to high-potential hydrocarbon basins with strong exploration prospects. In Namibia, multinationals TotalEnergies and Shell are continuing to explore the deepwater Orange Basin, with TotalEnergies allocating 30% of its one-billion-dollar exploration budget to the country in 2024 alone. Namibia’s government has been active in courting global financiers, emphasizing the need for sustainable energy development alongside oil and gas exploration and production. In Angola, TotalEnergies, Petronas and state-owned Sonangol secured a $6-billion FID for the Kaminho deepwater project in Block 20 that will develop the Cameia and Golfinho ultra-deepwater fields. The project will employ an all-electric FPSO unit, designed to minimize greenhouse gas emissions and eliminate routine flaring. Independent upstream company Invictus Energy also recently secured $10 million from local institutional investors for its Cabora Bassa project in Zimbabwe to develop the country’s first major oil and gas field.

The upcoming finance session will also position public-private partnerships as a mechanism for financing large-scale energy infrastructure projects, as well as de-risking investments. The Republic of Congo has advanced the development of its Banga Kayo block through an amended PSC with China’s Wing Wah Oil Company, enabling the commercialization of the block’s gas resources. In Nigeria, the $2.6-billion Ajaokuta–Kaduna–Kano gas pipeline is being financed through both public and private funds, with the Nigerian National Petroleum Company as the main financier and international lenders including the Industrial and Commercial Bank of China and Bank of China involved. Nigeria’s Federal Government has provided a sovereign guarantee covering 85% of the project’s costs, securing crucial financing and building investor confidence.

Distributed by APO Group on behalf of African Energy Chamber.

Continue Reading

Business

The Islamic Development Bank Institute (IsDBI) Completes Pilot Implementation of Islamic Finance Strategic Mapping Framework in Kazakhstan

Published

22 hours ago

on

September 9, 2024

By

IsDBI

This comprehensive assessment, conducted in collaboration with the Astana International Financial Centre (AIFC), aimed to identify key opportunities and challenges within the country’s Islamic finance sector

ASTANA, Kazakhstan, September 8, 2024/APO Group/ — 

The Islamic Development Bank Institute (IsDBI) (https://ISDBInstitute.org/) is pleased to announce the successful completion of its flagship Islamic Finance Strategic Mapping Framework (IF-MAP, formerly IF-CAF) (https://apo-opa.co/4cXPwti) pilot exercise in the Republic of Kazakhstan. This comprehensive assessment, conducted in collaboration with the Astana International Financial Centre (AIFC), aimed to identify key opportunities and challenges within the country’s Islamic finance sector.

The pilot initiative of IF-MAP was launched (https://apo-opa.co/3MyooGO) in June 2023, and involved extensive consultations with key stakeholders, including government agencies, financial institutions, and industry experts. The resulting tailored policy recommendations report, which outlines the sector’s progress and provides recommendations for future development, has been submitted to the AIFC.

AIFC’s commitment to promoting Islamic finance is evident through favorable conditions offered to Islamic financial companies to operate in both the retail and corporate sectors

As one of the key outcomes of the exercise, IsDBI and AIFC jointly developed the Kazakhstan Islamic Finance Country Report 2024 (https://apo-opa.co/3B4GwFv) which H.E. the Governor of AIFC, H.E. Mr. Renat Bekturov, launched on 6 September during the Astana Finance Days. The report highlights the immense potential of Islamic finance in supporting Kazakhstan’s economic growth and development.

In his welcome address, H.E. Mr. Renat Bekturov noted: “This report not only provides a comprehensive overview of the Islamic finance industry but also highlights our shared vision for the future.  AIFC’s commitment to promoting Islamic finance is evident through favorable conditions offered to Islamic financial companies to operate in both the retail and corporate sectors. The report is an invaluable guide for investors, policymakers, and stakeholders.”

Commenting on the successful completion of the pilot exercise, Dr. Sami Al-Suwailem, Acting Director General of IsDBI, stated, “We are delighted to have collaborated with the AIFC on this important initiative. The Kazakhstan Islamic Finance Country Report offers a valuable analysis of the sector’s current state and future prospects. We believe that the report, together with the IF-MAP policy recommendations submitted to the AIFC, will be instrumental in guiding policymakers, investors, and financial institutions as they work to harness the full potential of Islamic finance in Kazakhstan.”

The IsDB Institute remains committed to supporting the growth and development of the Islamic finance industry worldwide. Through its research, training, and capacity-building programs, the Institute seeks to contribute to the creation of a more inclusive and sustainable financial system.

The Kazakhstan Islamic Finance Country Report 2024 is accessible on IsDBI website here: https://apo-opa.co/4ge7jQ1

Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI).

Continue Reading

Business

ST Telemedia Global Data Centres Reinforces Commitment to Digital India, Invests US$3.2 billion to add 550MW Data Centre Capacity

Published

22 hours ago

on

September 9, 2024

By

ST Telemedia Global

SINGAPORE – Media OutReach Newswire – 6 September 2024 – ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest-growing data centre colocation services provider headquartered in Singapore, today announced a significant investment of US$3.2 billion (INR 26,000 crores) to expand its data centre capacity in India by a substantial 550MW, nearly tripling the company’s IT load capacity to meet the demands of India’s thriving digital economy, over the next 5-6 years.

This strategic investment reflects STT GDC’s confidence in India and the growth of its digital economy, as well as aligning with the burgeoning demand for digital infrastructure, driven by the surge in data consumption, cloud computing, digital transformation, and growing adoption of AI applications. This investment also further solidifies our market leadership in India, where we already command about 28% of market share by revenue.

STT GDC India is majority-owned by STT GDC in partnership with Tata Communications Ltd, which holds a minority stake in the company. STT GDC India’s portfolio consists of 28 data centres across 10 cities throughout India. Today, its data centre portfolio has a total combined capacity of over 318MW of IT load, with a well-diversified portfolio of about 1,000 enterprise customers that include many Fortune 500 companies. More recently, STT GDC India was recognised as a Great Place to Work for the fifth consecutive year, as well as one of the Best Places to Work in Asia.

“As we celebrate STT GDC’s 10th anniversary this year, embarking on this ambitious expansion is a sign of our confidence in Digital India and the future of one of STT GDC’s strategic and fastest growing markets globally. Prime Minister Modi’s vision for Digital India has paved the way for opportunity; today the India digital economy’s growth rate of almost three times overall GDP growth is putting the country on pace to achieve a US$1 trillion digital economy by 2027-20281. At STT GDC, we want to play an active role in co-investing and contributing to India’s long-term success by investing in the foundational digital infrastructure that will help further accelerate Digital India. We are excited about the opportunities ahead and are confident in our ability to contribute significantly to India’s digital transformation,” said Bruno Lopez, President and Group Chief Executive Officer, ST Telemedia Global Data Centres.

STT GDC, along with several other Singapore business leaders, participated in a Business Roundtable with Prime Minister Narendra Modi hosted by the Singapore Business Federation on 5 September 2024.

—–
1India digital economy: India to be $1 trillion digital economy by FY28: IT minister Rajeev Chandrasekhar – The Economic Times (indiatimes.com)

About ST Telemedia Global Data Centres
ST Telemedia Global Data Centres (STT GDC) is one of the fastest-growing data centre providers with a global platform serving as a cornerstone of the digital ecosystem that helps the world to connect. Powering a sustainable digital future, STT GDC operates across Singapore, the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, providing businesses an exceptional foundation that is built for their growth anywhere. For more information, visit https://www.sttelemediagdc.com/.

Continue Reading

Trending