While the electric vehicle revolution is slowly gaining momentum in Africa, another revolution is taking shape in the electric motorcycle space. This revolution matters more because there are way more motorcycles than cars in Africa, and their transformation could have a more significant impact on the continent's transportation landscape.

The Rise of Electric Motorcycles in Africa

Recent analysis by McKinsey & Company suggests that as much as 35% of the fleet in sub-Saharan Africa’s five largest vehicle markets (excluding South Africa) will be electric by 2040. Electric motorcycles are expected to lead this transition since they are most representative of the transport scenario. However, the electric motorcycle industry in sub-Saharan Africa faces three major obstacles: Over 90% of sold units are imports from China and India which are often unsuited to African conditions; the region’s 48% baseline electricity access is insufficient for a reliable charging network; and early-stage African startups lack access to high-quality storage technology.

Spiro, originally known as MAUTO, is an emerging player in the electric motorcycle industry. Founded in May 2022, the company has established a presence in Benin, Togo, Rwanda and Uganda, with a fleet of over 7,000 electric motorcycles and more than 250 battery swapping stations. A considerable proportion of Spiro’s customers are motorcycle taxi drivers.

Spiro has established a network of battery swapping stations strategically located in key cities. These stations allow customers to easily exchange their depleted electric motorcycle batteries for fully charged ones, eliminating the need for long charging times. This approach ensures that riders experience minimal downtime and can maximise the use of their electric motorcycles.

Spiro's electric motorcycle exchange programme has been instrumental in accelerating the adoption of sustainable transportation. They offer drivers of traditional motorcycles in Uganda, Benin, Togo, and Rwanda the opportunity to exchange their vehicles for electric motorcycles. Through this programme, Spiro makes electric mobility accessible and financially viable for these drivers, creating a win-win situation for both the drivers and the environment.

The Economic and Environmental Impact of Electric Motorcycles

Electric motorcycles offer several advantages over their petrol-powered counterparts. They are cheaper to run, require less maintenance, and produce zero tailpipe emissions. This makes them an attractive option for motorcycle taxi drivers, who can save money on fuel and maintenance costs while also reducing their environmental impact.

Spiro offers motorbike taxi drivers a subscription model, where they make a daily payment which combines the cost of battery swaps, insurance, and maintenance of the motorbikes. This daily payment works out more affordable than diesel costs. By providing drivers with the option to exchange their thermal motorcycles for electric motorcycles, Spiro significantly reduces their operational costs mainly on the maintenance part and also daily fuel consumption fees.

Additionally, Spiro's battery swapping system eliminates the need for drivers to invest in expensive charging infrastructure. To further support the economics, Spiro collaborates with various stakeholders, including government bodies and financial institutions, to provide favourable financing options and incentives for the drivers. These collaborations help to bridge the initial cost gap between thermal and electric motorcycles, making the transition financially feasible for the drivers.

Government Support and Market Selection

Spiro's model is attractive to governments for a number of reasons, including the safety of their modern vehicles, the positive outcomes for lowering emissions, and the benefits of providing a legal charging network to reduce the reliance of some drivers on illegal, untaxed diesel.

When selecting their initial markets, Spiro considered several key factors. Firstly, they assessed the demand for affordable and sustainable transportation solutions in each country. They looked for markets where the need for efficient urban mobility was high, and where the potential impact of their electric mobility solutions would be significant.

They also evaluated the policy environment and government support for clean transportation initiatives. Countries with favourable regulations and a commitment to sustainable development were prioritised, and this will continue to be the case. Furthermore, they took into account the existing infrastructure and the readiness of the market for electric mobility.

The Future of Electric Motorcycles in Africa

As Spiro and other companies continue to expand into new markets, they will continue to consider these factors, while also looking at factors such as population density, market size, and the receptiveness of local communities to embrace electric mobility.

One key lesson learned is the importance of collaboration with local stakeholders, including governments, regulators, and community leaders. Building strong partnerships and engaging with local communities has been instrumental in overcoming challenges and ensuring the success of their initiatives.

Spiro is now able to share knowledge between teams in different countries. So, for example, they have deployed some of their expert team from Benin to help implement their new network in Rwanda and they will do the same in Uganda. This allows them to hit the ground running and develop their charging networks at speed.

Another vital lesson is the need for continuous innovation and adaptation. Each market presents unique challenges and opportunities, and companies must remain agile in tailoring their solutions to specific local contexts. They invest significantly in research and development to enhance their electric motorcycle technology, improve battery efficiency, and extend the range of their vehicles.

Spiro expects their assembly plant in Benin to come on line in Q4 of this year, allowing them to manufacture and assemble more of their motorbikes on African soil. Similar factories are planned for Togo and Uganda, where they have pledged to introduce 140,000 electric motorbikes into the market in the next five years.

Furthermore, they foster collaborations with local and international partners, including governments, NGOs, and industry players, to leverage their expertise and resources. By joining forces, they can collectively address the challenges and accelerate the adoption of electric mobility across the continent.

The electric motorcycle revolution in Africa is a testament to the continent's resilience and innovation. Despite the challenges, companies like Spiro are making significant strides in transforming the transportation landscape in Africa. By leveraging technology, forging strategic partnerships, and prioritising customer experience, they are not only revolutionising the motorcycle industry but also contributing to a more sustainable and environmentally friendly future for Africa.