concluding 5000 km fully electric from Kigali, Rwanda to Beira, Mozambique
Why Spiro was ready for institutional capital
Ahead of their fireside chat at the Nordic–Africa EV Summit, Impact Fund Denmark and Spiro explain what supported the investment decision, how the capital will be deployed and what African e-mobility companies must demonstrate to attract institutional capital.
This article summarises written responses provided by Impact Fund Denmark (IFDK) and Spiro. All figures, assessments and projections are attributed to the organisation that supplied them.
Why Spiro was ready for institutional capital
Impact Fund Denmark said several factors supported its decision to invest USD 40 million in Spiro.
The first was the scale of the opportunity. IFDK noted that more than 25 million two-wheelers are already operating in sub-Saharan Africa. It also pointed to Spiro’s position in markets including Kenya and Rwanda, the experience of its operational team and the financial support and infrastructure track record of its sponsor, Equitane.
IFDK commissioned an experienced consultancy to assess the addressable market and the unit economics of Spiro’s business model. The results of this due diligence were incorporated into its base-case investment model and contributed to the final decision.
The investor also identified the potential climate and social impact. According to IFDK, Spiro’s scale could contribute to emissions reductions while helping more commercial riders enter the formal economy through asset-financing arrangements.
“The unit economics of battery swapping versus traditional ICE bikes are very attractive, creating a win-win situation for both boda riders and Spiro as the operator of the charging network.”
— Impact Fund Denmark
IFDK said the economic benefits available to commercial riders mean that adoption can be supported by market fundamentals as well as public policy.
“We are convinced that the underlying economics will continue to drive this change, not just government policies.”
— Impact Fund Denmark
What the investment means for Spiro
Spiro described the investment as both a source of growth capital and an important external validation of its business model.
“Receiving capital from a recognised DFI like Impact Fund Denmark acts as a high-value validation mark for Spiro towards international private investors.”
— Spiro
According to Spiro, the investment demonstrates that its model can combine environmental and social benefits with economic scalability and financial viability. The company also regards it as recognition of its environmental, social and governance standards and its progress towards manufacturing more of its products in Africa.
The capital will support increased production of electric two-wheelers, additional battery infrastructure, expansion within Spiro’s seven existing markets and entry into new markets. Spiro said it will also invest in local manufacturing, engineering and new product development.
Building infrastructure for commercial riders
Spiro said its growth followed several years of work to optimise its motorcycles, technologies and wider energy ecosystem. The company reports that it has now deployed more than 130,000 electric vehicles and 2,500 battery-swapping stations across seven countries, completing more than 50 million battery swaps.
Spiro considers the battery-swapping network a central part of its business model. Swapping allows commercial riders to exchange a depleted battery for a charged one within minutes, reducing the time during which the motorcycle cannot generate income.
“Building a battery-swapping network is capital-intensive, but we view it as long-term infrastructure. Offering easy charging directly supports the conversion of riders and helps overcome range anxiety.”
— Spiro
The company said its decisions about where to deploy vehicles and infrastructure are based on rider density, utilisation rates, fuel economics and the readiness of each market.
“Our priority is not expansion for the sake of expansion, but building sustainable markets with strong utilisation and clear economics.”
— Spiro
Spiro’s Battery-as-a-Service model separates access to the battery from ownership of the motorcycle. According to the company, this creates recurring revenue and gives the swapping network characteristics associated with an infrastructure business.
The economics of switching to electric
Both organisations identified operating-cost savings as an important driver of electric-motorcycle adoption. Spiro estimates that a commercial rider completing approximately 20 trips per day can reduce total ownership costs by around 35% by switching from a petrol motorcycle to an electric motorcycle.
The company said riders can save between USD 2 and USD 3 per day by avoiding volatile fuel costs and expensive conventional vehicle-financing arrangements. Impact Fund Denmark similarly identified the difference between electricity and petrol costs as an important component of the investment case.
“If a rider can save USD 2–3 per day where electrons are cheaper than carbon, it is a clear economic reason for the user to switch. It is really a bottom-up movement.”
— Impact Fund Denmark
IFDK said these economics are particularly attractive in countries such as Kenya, Rwanda and Ethiopia, where renewable electricity generation contributes to comparatively low grid-electricity costs.
Spiro noted that approximately 90% of Kenya’s electricity generation comes from renewable sources, primarily geothermal and hydropower. For countries with less reliable electricity systems, the company said it is developing solar-powered swapping stations and higher-capacity “Mega” stations.
What institutional investors need to see
Impact Fund Denmark described African e-mobility as a young and operationally complex sector. Companies entering the market frequently need to manage several activities within the same business, including importing or assembling vehicles, building charging infrastructure, managing batteries, providing after-sales services and coordinating with asset-finance providers.
According to IFDK, this creates significant upfront capital requirements and additional complexity for institutional investors. For African e-mobility companies seeking investment at scale, IFDK identified two principal requirements:
“First, the ability to achieve meaningful scale while executing effectively in often complex operating environments; and second, the ability to mobilise both equity and debt financing to support growth.”
— Impact Fund Denmark
IFDK acknowledged that companies often need capital to demonstrate scale, while investors frequently want to see evidence of scale before providing capital. It said strategic partnerships with financiers, technology providers, infrastructure companies and policymakers can help companies address this challenge. The investor also expects the sector to become more specialised as it matures.
“Rather than vertically integrated business models, we are likely to see dedicated players focusing exclusively on charging infrastructure, battery management, vehicle assembly or fleet operations.”
— Impact Fund Denmark
According to IFDK, this could allow companies to outsource non-core activities, improve operational efficiency and concentrate on their strongest capabilities.
Mobilising more capital for African e-mobility
Impact Fund Denmark said development-finance capital alone will not be sufficient to build the charging and energy infrastructure required across Africa.
“The magnitude of building new charging infrastructure across the continent will require billions of dollars. DFI capital alone will not bridge the gap.”
— Impact Fund Denmark
The Spiro investment combines development-finance capital with funding from Danish pension funds. IFDK also identified first-loss guarantees from the European Union as one mechanism through which development finance institutions can mobilise additional institutional capital.
Looking five years ahead, IFDK said African e-mobility could become a meaningful investment category for European institutional investors if the sector develops more specialised companies, profitable business models and a stronger performance record.
It added that further investment in electricity generation and transmission, improved management of decentralised charging networks, stable long-term policies and continued financing from local and international banks will also be important.
Local manufacturing and engineering
Spiro described electric mobility as both an energy transition and an industrialisation opportunity. The company plans to establish its first African research and development centre in Kenya following its acquisition of the design company Coexlion. It also highlighted Rwanda’s expanding production capacity and the opportunity to increase local sourcing and manufacturing in Nigeria.
“The long-term opportunity for Africa is to move beyond importing finished technology and capture more value through local engineering, vehicle manufacturing and even cell manufacturing.”
— Spiro
Spiro said the main constraints on expansion differ between markets. These can include grid reliability, regulation, import duties, manufacturing capacity and access to affordable consumer finance. The company therefore adapts its combination of vehicles, battery infrastructure, energy management, financing and local partnerships to the conditions in each country.
A signal to African e-mobility companies
Spiro said the response to the investment indicates growing interest in African e-mobility from local and international markets. The company estimates that Africa’s vehicle market is worth more than USD 30 billion annually, while electric vehicles currently represent approximately 1% of that market.
“It sends a clear signal that African e-mobility is beginning to attract serious global institutional attention.”
— Spiro
According to Spiro, the investment shows that African companies demonstrating strong execution, credible infrastructure, clear economics and locally relevant business models can compete for long-term institutional capital.
Join the conversation in Addis Ababa
A Milestone in Nordic DFI Investment: Impact Fund Denmark × Spiro
Alexander Wisse — Senior Investment Manager, Impact Fund Denmark (IFDK)
Kaushik Burman — CEO Mobility, Spiro
Moderated by Stuart Minnaar — MobilityX Africa
Tuesday, 15 September 2026
10:07–10:15
Main Hall, Science Museum, Addis Ababa
