Entrepreneurship Zone: 02 June 2023 :: The rise of electric motorcycles in Africa: Interview with Spiro CEO

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Entrepreneurship Zone: 02 June 2023 ::  The rise of electric motorcycles in
Africa: Interview with Spiro CEO

 




 


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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. 

How we made it in Africa interviewed Spiro CEO, Jules Samain, to learn more
about the business. Below are slightly edited excerpts.


How does Spiro’s business model work, particularly in terms of battery
swapping stations and the electric motorcycle exchange programme?


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

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

We offer 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, we significantly reduce their
operational costs mainly on the maintenance part and also daily fuel
consumption fees. Additionally, our battery swapping system eliminates the
need for drivers to invest in expensive charging infrastructure.

To further support the economics, we collaborate 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. Our model is attractive to governments for a number of reasons,
including the safety of our 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.


What was the rationale behind choosing the initial markets of Benin, Togo,
Rwanda and Uganda?


When selecting our initial markets, we considered several key factors.
Firstly, we assessed the demand for affordable and sustainable
transportation solutions in each country. We looked for markets where the
need for efficient urban mobility was high, and where the potential impact
of our electric mobility solutions would be significant. We 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, we took into account the existing infrastructure and the
readiness of the market for electric mobility. We aimed to select markets
where the charging infrastructure could be developed and scaled efficiently
– and of course it is important for us to consider the availability of green
energy sources. We want to work in an environment where we have access to
solar and hydroelectricity sources, rather than those that burn fossil
fuels. Where these are not immediately available, we will look at options to
enter partnerships to encourage the development of green power sources.

As we expand into new markets, we 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.


What are the key lessons you have learned so far?


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 our
initiatives.

We have also realised the significance of providing comprehensive training
and support to the drivers during the transition to electric motorcycles.
Ensuring that the drivers are equipped with the necessary knowledge and
skills to operate and maintain electric motorcycles optimally is crucial for
their long-term success.

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

Another vital lesson is the need for continuous innovation and adaptation.
Each market presents unique challenges and opportunities, and we must remain
agile in tailoring our solutions to specific local contexts.


In light of increasing competition in the electric mobility sector across
various African countries, what is Spiro’s approach to maintaining its
market position?


We invest significantly in research and development to enhance our electric
motorcycle technology, improve battery efficiency, and extend the range of
our vehicles. We expect our assembly plant in Benin to come on line in Q4 of
this year, allowing us to manufacture and assemble more of our motorbikes on
African soil. Similar factories are planned for Togo and Uganda, where we
have pledged to introduce 140,000 electric motorbikes into the market in the
next five years.

Furthermore, we foster collaborations with local and international
partners, including governments, NGOs, and industry players, to leverage
their expertise and resources. By joining forces, we can collectively
address the challenges and accelerate the adoption of electric mobility
across the continent. We also prioritise customer experience and
satisfaction. Providing reliable and convenient transportation solutions,
supported by a robust network of charging and battery swapping stations, is
essential to maintaining our competitive advantage. Lastly, we keep a close
eye on market trends and emerging technologies, allowing us to stay ahead of
the curve and adapt to evolving customer needs and preferences. By staying
innovative, collaborative, and customer-centric, Spiro aims to remain at the
forefront of the electric mobility market in Africa.



- howwemadeitinafrica

 

 

 


 


 


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