EV switch gains momentum in Francophone Africa

November 22, 2024

From the newsletter

Senegal-based e-mobility solutions provider and energy startup Solarbox Africa has secured $1 million in pre-seed funding. The company designs, assembles and deploys custom-made two- and three-wheeled EVs for corporations. It plans to use the funding to expand its EV and solar charging solutions across the country and beyond.

  • The funding round was led by a mix of African and foreign ventures. Foreign investors included the Digital Energy Facility (a collaborative initiative led by Agence Française de Développement, IetP, and Gaia Impact Fund) and the JLL Foundation. African investors included the Mauritius-based Launch Africa and Senegal's Teranga Capital.

  • SolarBox was incubated by Wuri Ventures, a venture capital firm based in Senegal. The company also provides solar charging solutions, financing and fleet management solutions to support its electric vehicle offerings.

More details

  • Solarbox Africa has quickly established itself as a key player in Senegal's clean mobility transition. Since its launch in 2022, the company has formed alliances with a diverse group of organisations, ranging from international giants like FedEx and Orange Energies to local innovators such as Paps Logistics and Health in a Box. 

  • Solarbox vehicles are proving to be reliable for these corporations. Data from its deployments with Orange Energies show that each vehicle costs $2.50 for 100 km of driving, compared to up to $5.50 for petrol, representing savings of 50-60%.

  • Paul-Francois Cattier, senior venture partner at On.Capital and the first institutional investor in Solarbox, expressed optimism about the funding. He said, "In less than a year, Solarbox Africa demonstrated that it could win over big corporates with a win-win offer, while assembling and designing solutions that truly fit local realities and customers' needs. We believe this pre-seed round positions Solarbox as the fastest-growing, profitable, and well-funded electric mobility leader in Senegal."

  • Another e-mobility startup making waves in Senegal is Mbay Mobility. Primarily focused on the taxi industry, Mbay aims to deploy 33,000 EVs in the next 10 years and has started with a rollout of 10 EVs.

  • Meanwhile, in Morocco, WattsC, a Moroccan greentech company, is partnering with Teison, a Chinese EV charging solutions provider, to expand electric vehicle charging infrastructure in Morocco and French-speaking Africa. 

  • WattsC aims to build 2,000 EV charging stations by the end of 2026 to expand the EV ecosystem. This collaboration will bring advanced charging technology, innovative charging infrastructure, and user training programs to the region.

  • In Senegal, the government has invested in the Bus Rapid Transit system and has deployed 121 electric buses with a capacity of 150 passengers each as it rolls out its plan to fully decarbonise the public transport sector.

  • In Benin and Togo, the initial market for Spiro electric motorcycles is experiencing growing demand for their use in urban areas as the cheapest transport option for short-distance travel.

Our take

  • Solarbox Africa's pre-seed funding is a bet on its potential. This initial investment will fuel the company's early development, enabling it to refine its products, expand its operations, and ultimately attract larger investments that will drive its long-term success.

  • It is also important that African startups receive investments from both African-based and foreign VCs. African VCs bring a deep understanding of the local context, strong regional networks, and a commitment to local development, while foreign VCs provide access to global capital, expertise, and potential for international expansion. Increased investment from both is crucial if Africa truly wants to create the local jobs it needs.

  • Francophone Africa is an attractive emerging market for EVs. The market economics are good, but the region is faced with political instability that can scare investors away. Mali and Benin are some countries that have experienced coups before. Senegal and Morocco seem to be the most attractive markets that enjoy stable governments and are likely to lead in EV adoption.