Two-wheel solutions turbocharges Africa’s green mobility push

By Alida ban Pavlovic, BSA

From four wheels to two wheels, Africa’s pursuit of cost-effective transportation is spurring the adoption of electric bikes and vehicles as gas prices soar.

According to Astute Analytica, the Middle East and Africa e-bike market, valued at $822.22 million in 2021, is projected to reach $1.7 billion by 2029.

This growth is transforming the continent’s mobility landscape, driven by financial, environmental, and social imperatives.

Kenya-based ARC Ride and Roam are leading this green revolution. ARC Ride launched an electric motorcycle-based service for Uber Eats deliveries in Nairobi and plans to expand its fleet to over 2,000 electric bikes and three-wheelers by the end of 2022.

Roam, in partnership with Uber, aims to deploy thousands of electric bikes across Kenya and other African cities, leveraging Uber’s extensive market presence to accelerate adoption.

Investment in Africa’s electric mobility market is gaining momentum. Startups such as Ampersand and Ecobodaa are attracting significant attention.

Ampersand plans to scale up its fleet from 56 to several thousand electric motorcycles, aiming to expand in the Kenyan market.

Ecobodaa is implementing a rent-to-own business model to increase uptake and is expanding its battery swap stations across Kenya, enhancing the convenience and feasibility of electric two-wheelers for long-distance travel.

E-commerce giant Jumia is also joining the green mobility revolution. The company is replacing fuel-based delivery bikes with electric ones in partnership with eBee Africa, aligning with Jumia’s commitment to environmental sustainability and positioning it as an early adopter in the African EV market.

The low entry cost barrier makes electric bikes particularly attractive for entrepreneurs looking to tap into the growing demand for eco-friendly transportation. However, electric vehicles (EVs) are also becoming more accessible.

Massive investments by Chinese carmakers are driving down the costs of EVs, making them a viable option for a broader range of consumers in Africa.

Additionally, the conversion of gas-powered cars to EVs is gradually gaining traction, especially in the tourism industry on the continent.

This shift allows existing vehicles to be retrofitted with electric powertrains, offering a sustainable alternative without needing entirely new cars.

Investors, particularly from Asia and Europe, are increasingly recognizing the potential of Africa’s EV market.

Indian EV maker One Electric has begun delivering its Kridn motorcycle in Kenya, with plans to expand to four more African countries. Similarly, Japan’s Yamaha Corporation has invested in Nigeria’s MAX.NG, which is set to launch 1,000 EVs by the end of 2021.

The shift to electric mobility promises substantial climate benefits. According to the United Nations Environment Program (UNEP), a global transition to electric motorcycles and vehicles could prevent 11 billion tons of CO2 emissions.

In Kenya alone, UNEP projects that motorcycles will triple to five million this decade, significantly reducing the carbon footprint of daily commutes.

Companies like ARC Ride are building in-city charging networks to facilitate the adoption of electric bikes, crucial for supporting this transition.

Despite the promising outlook, several challenges remain. Regulatory frameworks in many African countries are still evolving to accommodate electric vehicles.

Policymakers are urged to create supportive environments that encourage investment in EV infrastructure and incentivise consumers to switch to electric bikes and vehicles. Market acceptance is another critical factor.

While there is growing awareness of the benefits of electric mobility, widespread adoption requires robust education and marketing efforts.

Companies must address consumer concerns regarding battery life, charging infrastructure, and overall cost-effectiveness.

The adoption of electric mobility in Africa thus represents a significant leap toward sustainable urban transportation. The financial and strategic benefits for startups, investors, and multinational corporations are substantial, with the potential for high returns on investment and significant climate impact.