Revolutionizing Africa's Roads: The Electrifying Battery Swap Scheme

Spiro, a startup aiming to replace fuel-dependent motorcycles and scooters with electric two-wheelers, is now expanding their operations to Kenya. The announcement was made by the host government of the Africa Climate Summit, which began in Nairobi, Kenya's capital, today. According to the announcement, Spiro will be introducing their largest deployment to date in the East African country, consisting of 1.2 million electric vehicles.

This marks a significant achievement for the company established in the West African nation of Benin in 2022, asserts CEO Jules Samain - extensively expanding its fleet from the current 10,000 bicycles in use throughout Benin, Togo, and Rwanda. Additionally, this autumn, the company will commence its phased introduction of 140,000 bicycles in Uganda.

Crushing polluters

Spiros' goal, as stated by Samain in an interview with CNN, is not just to reduce pollution sources, but to completely eliminate them. After an old bike is traded in, its parts will be recycled and repurposed. To achieve this, the company has organized "crushing events" in Benin and Togo, where motorized vehicles are publicly flattened so that the material can be reused.

The process for drivers varies between countries. In Kenya, they will be offered 50,000 Kenyan shillings (approximately $344), which is around a third of the cost of a new electric bike, in exchange for their current bike. They will also have the option to pay a daily subscription of about 255 Kenyan shillings (roughly $2). This subscription fee will cover the outstanding balance and grant drivers access to battery-swap stations. At these stations, they can quickly exchange depleted batteries for fully charged ones.

The company claims that the scheme not only decreases the amount of petrol and diesel vehicles on the road and reduces air pollution, but it also saves drivers money in terms of fuel and maintenance costs. According to the startup, some of its motorbike taxi drivers have experienced an increase in profits, going from approximately $6 to $11 per day after becoming part of the scheme.

Spiro operates hundreds of battery-swap and maintenance stations across the countries it serves, allowing drivers to easily exchange depleted batteries for fully charged ones.

According to a 2022 report by the FIA Foundation, an international charity focused on transport and road safety, electric motorcycles currently have a higher purchase price than petrol-powered motorcycles. However, the report highlights that operating costs for electric motorcycles are cheaper. In numerous African countries, one kilowatt-hour of electricity can power a bike for a similar distance as one liter of petrol, but at a significantly lower cost - approximately five to 10 times less.

The report also emphasizes the importance of battery-swapping initiatives in making electric two-wheelers more affordable. By selling electric motorcycles without the battery, the initial purchase price is significantly reduced.

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For battery-swapping to be effective, a reliable and easily accessible charging infrastructure is crucial, according to Samain. Prior to the distribution of the first bike, a network of swapping stations is established. These stations are strategically positioned after a thorough analysis of the terrain, ensuring comprehensive coverage in both urban and rural areas.

Spiro has made a commitment to construct 3,000 such stations throughout Kenya. This initiative aims to not only alleviate drivers' concerns regarding range, but also contribute to the development of the country's electric vehicle infrastructure. Additionally, the company, which presently produces the majority of its bikes and scooters in China, has agreed to establish a local manufacturing facility in Kenya, creating employment opportunities within the nation.

Speaking at the initiative's launch in Mombasa, Kenyas president, William Ruto, emphasized the sustainable way in which it creates employment opportunities and facilitates the transfer of knowledge, technology, and skills to our market.

President William Ruto drives a Spiro electric motorcycle during the national launch of the initiative in Mombasa, Kenya.

AFP via Getty Images

Charging forward

The number of registered motorbikes in sub-Saharan Africa has increased significantly over the years. According to the FIA Foundation, there were only 5 million motorbikes registered in 2010. However, as of 2022, this number has soared to 27 million. Interestingly, around 80% of these motorbikes are utilized in the motorcycle taxi industry. This sector is thriving with immense potential for growth. In fact, a report by management consulting firm McKinsey suggests that by 2040, electric and petrol motorbikes will account for more than 45% of the overall vehicle fleet in sub-Saharan Africa.

courtesy Roam

To prevent Africa from becoming a dumping ground for unwanted polluting vehicles, McKinsey emphasizes the importance of enabling affordable and reliable electrification. This is particularly crucial considering the potential influx of second-hand motorized vehicles that fail to meet emission standards in other countries.

Spiro, formerly known as M-Auto, is just one of the startups driving this transition. Roam, a Swedish-Kenyan startup formerly named Opibus, recently inaugurated the largest electric motorcycle assembly plant in East Africa. Meanwhile, Ampersand boasts a fleet of approximately 1,000 bikes and a small network of battery-swap stations in Kenya and Rwanda. Uber also joined the movement by launching an electric motorbike service in Kenya, with plans to introduce 3,000 bikes within six months.

However, Spiro's expansion in Kenya is on an unprecedented scale. The startup is on track to surpass the milestone of one million electric bikes under a government agreement, which holds great significance. Samain, CEO of Spiro, expressed optimism for the future, aiming to operate in at least 10 African countries by 2030.