Revolutionary Electric Truck Unleashes Deliveries on Rwanda's Challenging Dirt Roads

Updated on October 17, 2023, the lush hills of Rwanda are home to exceptional endurance cyclists. While not aspiring for the Tour de France, these remarkable individuals effortlessly navigate challenging mountains while balancing an astonishing 100 kilograms of fruit on their heads and shoulders.

OX Delivers, a British-Rwandan delivery startup, is aiming to transform transportation in this region. While larger vehicles struggle on the dirt roads, farmers commonly rely on bicycles and motorcycles to transport their produce to market. However, OX Delivers is introducing a solution in the form of their electric OX Trucks. These trucks, designed by former Formula One engineer Gordon Murray in 2016, are specifically built to navigate dirt roads and can transport up to two tons of goods. This capacity is approximately 20 times that of a cyclist, presenting a significant increase in efficiency. The initiative was commissioned by the non-profit organization, Global Vehicle Trust, with the objective of providing essential deliveries in developing countries.

The year 2020 saw the introduction of OX Delivers by the Global Vehicle Trust. Despite being based in Warwickshire, England, the company presents it as an African-driven endeavor. Instead of selling the vehicles, OX Delivers offers truck space for rent, primarily catering to smallholder farmers and small-scale traders.

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A fleet of two trucks was initially launched in Western Rwanda in April 2021, which has since expanded to 24 vehicles. These trucks are responsible for transporting a variety of goods, including fruit, livestock, lumber, and school equipment. Francine Uwamahoro, the managing director of Rwanda, explains that previously, clients would rely on any available means of transport, such as bikes, which often resulted in long delays lasting around two days.

The OX Truck, equipped with large tires and high ground clearance, is designed to tackle the challenges of Rwanda's terrain. The company ensures minimal breakdown time by carefully selecting parts and incorporating easily interchangeable components, which can be swiftly replaced in the event of damage caused by rocks on the dirt roads.

Customers reserve space on a truck by using a user-friendly "app" specially designed for 2G feature phones. Due to the app's current inability to handle payments, drivers personally engage with customers to establish prices and foster meaningful connections. Uwamahoro emphasizes that our drivers hold the key to our development and expansion.

Truck drivers are crucial for building relationships with customers, says OX Delivers.

OX Delivers

Connecting rural Africa

The number of paved roads per kilometer in Sub-Saharan Africa is less than a quarter of the average in all low-income regions. The absence of adequate road infrastructure can result in increased freight costs and extended transportation durations, ultimately hindering economic advancement.

"According to Simon Davis, the managing director of OX Delivers, bananas are priced 10 times higher in Kigali, the capital of Rwanda, compared to the cost in a village. He highlights that while it is feasible to obtain high-quality fruit and deliver it to Kigali, the transportation costs significantly outweigh the benefits."

"To address this issue, Davis suggests two potential solutions. Firstly, constructing additional paved roads could be considered. However, he advocates for a more sustainable approach - the availability of affordable vehicles that can navigate dirt roads."

"What occurs in the event of a flood that carries away a bridge? You are unable to afford a replacement due to lack of funds," he explains. "However, if we construct a truck designed to operate on the current road system, we generate a substantial amount of income, and eventually, a portion of that income transforms into tax revenue."

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OX Delivers claims to charge the same as cargo bicycles for transportation, which is approximately 50 cents for transporting a 100 kilogram sack over a distance of 10 kilometers (6.2 miles). However, unlike bicycles, OX Delivers can travel longer distances and offers a discount for return trips.

To maintain low costs, the company ensures control and efficiency at every stage of the supply chain. For instance, its parts are shipped in flat-pack form from Britain to Rwanda, allowing materials for six vehicles to fit into a shipping container that would typically accommodate only two complete trucks. OX states that the truck can be assembled by three individuals who possess some skill (but need not be experts) in just 12 hours, aided by an image-based guide similar to IKEA instructions.

Davis claims that the daily cost of running on electricity is 50% lower compared to using diesel engines. With a range of 170 kilometers, the trucks are equipped with private charging depots specifically designed to compensate for the limited availability of public charging infrastructure in Rwanda, taking up to six hours to fully recharge.

OX Delivers says its truck is an effective solution for areas that lack paved roads.

OX Delivers

Impacting people who have been left behind

Fransua Vytautas Rasvadauskas, a senior consultant specializing in mobility and cities at Euromonitor, a market research firm, concurs that the off-road delivery market could serve as a temporary solution for infrastructure challenges. However, he sees its potential limited to the short-to-medium term. "There is significant future growth potential in sub-Saharan Africa, which ideally will lead to improved road infrastructure," he explains. "Nevertheless, I believe that off-road vehicles will present a viable option for the region for the next 10, 20, or even 30 years."

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Other companies in Rwanda are attempting to address the gap in food delivery. Vanoma focuses on last-mile delivery from online sellers to customers' homes, while Get It primarily transports food from suppliers to hotels and restaurants. In contrast, OX Delivers specifically targets underserved rural traders seeking to bring their goods to market.

With over 100 employees, including 70 in Rwanda, the company has already assisted 1,000 clients. Its largest shareholder is Global Vehicle Trust, and it has also attracted for-profit "impact" shareholders. Additionally, OX Delivers has received £8 million ($9.6 million) in seed funding and £20 million ($24 million) in UK government grants. The company's future plans involve further enhancing their app and implementing a cold-store fitting to accommodate perishable cargo.

The model can be implemented in any rural African area where transportation is difficult. According to Uwamahoro, "It works in any rural African place where transport is a challenge. People rely on agriculture, and there is a need to transport products."

Davis reveals that the company has received offers to expand into other East African nations like Zambia, Uganda, and Kenya. However, the business model is not only a demonstration of growth, but also a way to enable and promote it.

"Its about impacting the people who have been left behind," says Uwamahoro. "OX is giving them power to grow economically."