In a continent where second-hand combustion engine vehicles dominate the roads and charging infrastructure remains scarce, a $1.3bn investment fund is placing a substantial bet on electric two-wheelers.
The Fund for Export Development in Africa (FEDA), the equity arm of the African Export-Import Bank (Afreximbank), recently committed $75m to Spiro, an electric motorcycle company that has quietly built Africa’s largest battery-swapping network since its 2022 founding.
The investment represents one of the largest single deployments of capital into African electric mobility to date, and underscores a growing institutional appetite for clean transport solutions in emerging markets where traditional EV infrastructure faces significant barriers.
The Infrastructure Play
Unlike conventional electric vehicle models that rely on individual ownership and home charging, Spiro has adopted a battery-swapping approach more commonly seen in Asian markets. The company operates over 1,200 swap stations across six African countries, serving a fleet of more than 60,000 electric motorcycles.
The model addresses a critical challenge in African markets: the lack of reliable electricity infrastructure and the high upfront cost of battery ownership. Riders can exchange depleted batteries for charged ones at swap stations in minutes, paying only for the energy consumed rather than owning the battery outright.
“This is fundamentally an energy distribution business wrapped in a mobility solution,” said Gagan Gupta, Spiro’s founder. “As we expand our battery swapping infrastructure and integrate renewable energy sources into our energy mix, we are positioned to unlock substantial upside in Spiro’s energy distribution.”
The company claims to have facilitated over 26 million battery swaps and eliminated approximately 800 million kilometres of fossil fuel-based travel since launch.
The Billion-Dollar Backer
FEDA operates with a mandate distinct from traditional venture capital or private equity funds. As the impact investment subsidiary of Afreximbank, it focuses explicitly on trade development, intra-African commerce, and manufacturing value chains.
The fund has deployed over $1.3bn across various sectors including manufacturing, agro-processing, financial services, and healthcare. Its parent institution, Afreximbank, manages assets exceeding $40bn and holds investment-grade ratings from multiple agencies.
“Spiro’s success to date is a clear demonstration of the strength and scalability of its business model,” said Marlene Ngoyi, FEDA’s CEO. “The company’s rapid growth and strong market adoption underscore the significant demand for affordable, sustainable mobility solutions across Africa.”
The investment aligns with Afreximbank’s broader automotive strategy, which aims to reduce African dependence on imported vehicles while building local manufacturing capacity. According to Dr. George Elombi, President of Afreximbank and Chairman of FEDA’s board, the partnership represents “laying the groundwork for a new era of intra-African trade and industrialisation.”
Local Manufacturing Push
Spiro operates assembly facilities in Uganda, Kenya, Nigeria, and Rwanda — a multi-country production strategy that reflects both market diversification and a response to varying regulatory environments across the continent.
The approach mirrors broader trends in African industrialisation, where manufacturers increasingly establish regional production hubs rather than centralising operations in a single country. This strategy can help navigate complex import regulations, reduce logistics costs, and satisfy local content requirements.
Professor Benedict Oramah, former President of Afreximbank, emphasised the technology transfer dimension: “It fosters skills and technology transfer as well as creates employment opportunities and reduces the continent’s reliance on imported second-hand vehicles.”
The investment arrives as several African governments implement policies favourable to electric vehicles. Rwanda, Kenya, and other markets have introduced tax incentives, reduced import duties on EV components, and established emissions standards that favour clean mobility solutions.
However, challenges remain substantial. Grid reliability varies significantly across markets, disposable income levels constrain adoption rates, and the total cost of ownership for electric motorcycles — while competitive over time — requires riders to trust a relatively new company and technology.
The motorcycle and three-wheeler segment may offer advantages over passenger cars in African markets. Lower price points, established use in commercial transportation (delivery riders, taxi services), and shorter range requirements make two-wheelers more immediately viable for electrification.
The Scale Question
Spiro’s growth trajectory since 2022 has been rapid, but the company now faces the challenge of scaling from 60,000 vehicles to numbers that would significantly impact continental emissions and mobility patterns.
The company has not disclosed revenue figures, profitability metrics, or detailed unit economics. Questions around battery lifecycle management, residual values of electric motorcycles, and the capital intensity of expanding swap station networks will prove crucial as the business matures.
FEDA’s investment provides both capital and institutional credibility, potentially easing Spiro’s path to additional financing rounds. The fund’s focus on trade development and regional integration suggests patience for longer investment horizons than typical venture capital.
For African electric mobility, the Spiro-FEDA partnership represents a test case: can development finance institutions and commercial operators collaborate to build sustainable, scaled alternatives to combustion engines in markets where traditional EV playbooks don’t apply?
Afreximbank is headquartered in Cairo, Egypt, and holds investment-grade ratings from GCR (A), Moody’s (Baa2), CCXI (AAA), JCR (A-), and Fitch (BBB-).