Spiro, a subsidiary of the Equitane Group, aims to lead Africa’s transition to sustainable transportation. Its efforts have earned it a spot on TIME’s 100 Most Influential Companies of 2024. Currently, Spiro operates 21,000 electric motorbikes across seven African countries, making it a Contact online >>
Spiro, a subsidiary of the Equitane Group, aims to lead Africa’s transition to sustainable transportation. Its efforts have earned it a spot on TIME’s 100 Most Influential Companies of 2024. Currently, Spiro operates 21,000 electric motorbikes across seven African countries, making it a key player in the continent''s e-mobility space.
Africa, with its 54 countries and a population of 1.4 billion, presents a unique and diverse market for e-mobility. Despite having a population size comparable to India, the continent’s 2W ownership is significantly lower. Annual two-wheeler sales in Africa are around 2 million units, compared to 20 million in India, with a total stock of just 20 million compared to India''s 250-300 million. This disparity reflects both a challenge and an immense opportunity for growth in the mobility sector.
The adoption of EVs varies across Africa, with East Africa showing higher uptake due to better purchasing power and GDP levels. Countries like Kenya, Uganda, Rwanda, and Ethiopia are leading the charge. West Africa, including Nigeria, faces challenges such as unreliable electricity supply. South Africa and the Democratic Republic of the Congo (DRC) experience similar issues, highlighting the importance of infrastructure development to support e-mobility.
2Ws, particularly motorcycles, are the backbone of Africa''s transport system. Motorcycles are mainstream in Africa for their ability to handle rough terrains and heavy loads. This preference is driven by the continent''s unique transport needs, such as bike taxis and cargo transport. 3Ws are also dominant, especially for passenger and goods transport in West and East Africa.
The shift to electric 2Ws offers substantial economic and environmental advantages. Operators, such as bike taxi owners, can save 15-30% on running costs compared to petrol vehicles. These savings stem from lower energy costs and reduced maintenance.
Additionally, EVs help reduce emissions, addressing health concerns related to air pollution from petrol bikes. This transition supports Africa’s broader sustainability goals and reduces its dependence on imported fuel.
Spiro has developed an extensive battery-swapping network to overcome the challenges of limited electricity infrastructure. This model allows riders to quickly replace depleted batteries, offering convenience comparable to refuelling at gas stations. Burman emphasized that battery swapping is not the sole solution; it must be complemented by fast charging infrastructure to alleviate range anxiety and provide flexibility for users.
African governments are playing a crucial role in promoting e-mobility. Some have introduced bold mandates, such as Rwanda banning the registration of gas-powered motorbikes by 2025 and Ethiopia banning the import of all gas-powered passenger vehicles. These policies signal a commitment to clean transportation and encourage the private sector to invest in the necessary infrastructure. While African governments may not have substantial subsidies like India''s FAME program, they are fostering an environment conducive to e-mobility growth.
Renewable energy, particularly solar, will be pivotal in addressing Africa''s energy challenges. While renewable energy will play a crucial role, Burman acknowledges that the base load will still rely on hydrocarbons like natural gas and coal for stability.
Burman envisions a phased growth of e-mobility in Africa, starting with two-wheelers and expanding to three- and four-wheelers. Public transport electrification, such as buses, is still in its infancy but has significant potential. Companies like Basigo in Kenya are already making strides in this space. As the infrastructure and energy supply improve, the e-mobility ecosystem will continue to expand, driven by both public and private sector efforts.
There is vast potential and unique challenges to Africa''s transition to electric mobility, which requires strategic investments, strong government support, and a focus on local talent and infrastructure. There are significant opportunities for Indian and global companies to engage in Africa''s growing e-mobility market. Collaboration will be essential, with partnerships between OEMs, energy providers, and local businesses. For businesses looking to enter the African market, long-term partnerships and a commitment to localization will be key to success.
Spiro is investing heavily in local talent and infrastructure. The company has established an Africa Center of Excellence and Innovation in Nigeria and launched manufacturing facilities in Kenya and Nigeria. The company also trains and upskills local professionals.
electric vehicle (EV)s are the key technology to decarbonise road transport, a sector that accounts for over 15% of global energy-related emissions. Recent years have seen strong growth in the sale of electric vehicles together with improved range, wider model availability and increased performance. Passenger electric cars are surging in popularity – we estimate that 18% of new cars sold in 2023 will be electric.
If the growth experienced in the past twoyears is sustained, CO2 emissions from cars can by 2030 be put on a pathway aligned with the Net Zero Emissions by 2050 (NZE) Scenario. However, electric vehicles are not yet a global phenomenon. Sales in some countries, especially developing and emerging countries, have been slow due to typically higher purchase costs compared to conventional vehicles and a lack of charging infrastructure.
Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. This is more than six times higher than in 2018, just 5 years earlier. In 2023, there were over 250 000 new registrations per week, which is more than the annual total in 2013, ten years earlier. Electric cars accounted for around 18% of all cars sold in 2023, up from 14% in 2022 and only 2% 5 years earlier, in 2018.
In the NZE Scenario, electric car sales reach around 65% of total car sales in 2030. To get on track with this scenario, electric car sales must increase by an average of 23% per year from 2024 to 2030. For comparison, electric car sales increased by almost 35% in 2023 compared to 2022.
The global EV fleet consumed about 130TWh of electricity in 2023, which accounted for about 0.5% of current total final electricity consumption worldwide. The use of EVs displaced around 0.9Mb/d (2 EJ) of oil in 2023.
Battery production has been ramping up quickly in the past few years to keep pace with increasing demand. In 2023, battery manufacturing reached 2.5 TWh, adding 780 GWh of capacity relative to 2022. The capacity added in 2023 was over 25% higher than in 2022.
Global battery manufacturing capacity by 2030, if announcements are completed in full and on time, could exceed 9 TWh by 2030, of which about 70% is already operational or otherwise committed. When assuming a maximum utilisation rate of 85%, this translates to the potential for almost 8 TWh of batteries to be produced in 2030, of which over 5.5 TWh is from plants already operational today and those with committed announcements. This level of production would be sufficient to meet global deployment needs in the APS and over 90% of the deployment needs in the NZE Scenario by 2030.
Supply chains for sodium-ion batteries – currently the only viable lithium-free battery alternative – are also being established. If manufactured at scale, sodium-ion batteries could cost up to 20% less than lithium-ion batteries, however, the current energy density of these batteries is lower.
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