On December 4, 2024, OX Delivers unveiled a significant $163 million agreement to enhance its electric vehicle operations in East Africa.
This partnership marks a significant step for the UK-based e-mobility startup, as it aims to enhance trade across the Global South by establishing its first franchise in the region.
Transforming trade in East Africa
The agreement will enable OX Delivers to deliver a fleet of all-electric trucks and provide a subscription to its technology platform and maintenance services.
CEO and Co-Founder Simon Davis stated, “Today’s exciting agreement represents a significant milestone for the team at OX Delivers… This deal enables us to significantly accelerate our business model”.
The new franchise, OX East Africa, will initially focus on Rwanda and subsequently expand into Uganda, Kenya, Tanzania, and Burundi.
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Empowering local economies
Colin Tebbett, who will lead the franchise, highlighted the positive impact on local businesses: “Over the last three years, OX Delivers has made a significant positive impact on the lives of our 5000 customers in Rwanda… This new franchise will allow us to strengthen our commitment to Rwanda”.
The service drastically reduces transportation time for goods, allowing traders to reach markets faster and increase sales.
Since its inception in Rwanda in 2021, OX Delivers has assisted more than 5,000 clients, predominantly smallholder farmers and merchants.
The company has reported generating over $920,000 in revenue during the fiscal year. Given that transport expenses in developing countries are considerably greater than those in established nations, OX Delivers seeks to offer a cost-effective solution that promotes economic development and social transformation.