African Export-Import Bank (Afreximbank), through its Development Equity Impact Investment Division, the Fund for Export Development in Africa (FEDA), has announced a $75 million strategic investment in Spiro, Africa’s top electric two-wheeler company and the fastest-growing provider of battery-swapping infrastructure.
- African Export-Import Bank (Afreximbank), through its Development Equity Impact Investment Division, the Fund for Export Development in Africa (FEDA), has...
- “This investment is fully aligned with Afreximbank’s broader automotive strategy, to develop integrated manufacturing ecosystems by fostering strategic partnerships across...
- Dr George Elombi, the chairman of the Afreximbank and FEDA boards of directors and president of Afreximbank, commented on the...
- “We are proud to welcome FEDA as a strategic investor as we accelerate the growth of Spiro’s mission to transform...
Keep reading for the full breakdown on Afreximbank — everything you need to know is covered below.
“This investment is fully aligned with Afreximbank’s broader automotive strategy, to develop integrated manufacturing ecosystems by fostering strategic partnerships across the entire value chain, from technology providers to local industrial champions,” a statement on Afreximbank’s website on Monday stated.
Pro-electric vehicle (EV) policies across several African countries
According to the statement, this collaboration aligns with the implementation of pro-electric vehicle (EV) policies in several African countries, including Ghana, Kenya, Rwanda, Ethiopia, and Nigeria.
Recall that the Nigerian Senate approved a bill on November 5th in its second reading to accelerate and promote the transition to electric vehicles (EVs) and promote green mobility.
Dr George Elombi, the chairman of the Afreximbank and FEDA boards of directors and president of Afreximbank, commented on the investment, saying it is a significant step in strengthening Africa’s industrial base and fostering intra-African trade.
“I am delighted that the partnership between FEDA and Spiro has now been consummated. With this partnership, the Bank is laying the groundwork for a new era of intra-African trade and industrialisation by stimulating local vehicle manufacturing, strengthening regional integration, and enhancing trade flows. Importantly, it fosters skills and technology transfer as well as creates employment opportunities and reduces the continent’s reliance on imported second-hand vehicles,” Elombi noted.
Afreximbank’s investment to accelerate Spiro’s goal to revolutionise green mobility across Africa
According to Spiro founder Gagan Gupta, the investment will accelerate the company’s goal to revolutionise energy distribution and mobility across the continent.
“We are proud to welcome FEDA as a strategic investor as we accelerate the growth of Spiro’s mission to transform mobility, energy storage, and distribution across Africa. Spiro’s rapid expansion into new markets reflects the continent’s strong appetite for clean, affordable, and efficient transportation. As we expand our battery swapping infrastructure and integrate renewable energy sources into our energy mix, we are positioned to unlock substantial upside in Spiro’s energy distribution,” Gupta stated.
Spiro’s success demonstrates how African innovation can yield both financial gains and social impact, according to Marlene Ngoyi, CEO of FEDA.
Ngoyi said, “Spiro’s success to date is a clear demonstration of the strength and scalability of its business model. The company’s rapid growth and strong market adoption underscore the significant demand for affordable, sustainable mobility solutions across Africa. With its integrated approach, Spiro has built a platform that is both commercially viable and socially impactful.”
Nigeria’s effort to promote green mobility
In an attempt to reposition Nigeria’s automotive sector and hasten the nation’s clean energy transition, the Federal Government introduced new National Occupational Standards (NOS) for compressed natural gas (CNG) and electric vehicles (EVs) in July.
According to its website, FEDA makes investments in various industries, including manufacturing, financial services, agribusiness, technology, infrastructure, and ancillary infrastructure that facilitates trade, such as industrial parks.
With more than 60,000 electric motorcycles and 1,200 charging stations spread across multiple nations, Spiro, founded in 2022, operates Africa’s largest battery-swapping network.