Mauto’s expansion into the Rwandan market
The growing need to decarbonise the global economy through low-carbon means has led to a more rapid adoption of e-mobility solutions in Africa. MAuto, an e-mobility company that has been operating in Benin and Togo for little over six months is spreading its wings to the East African region. CNBC AFRICA spoke to Shegun Bakari, the CEO to understand its entry into the Rwandan market.
Tue, 28 Feb 2023 11:06:00 GMT
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AI Generated Summary
- The success of MAuto in Benin and Togo, where they have established themselves as the largest electric mobility company in Africa with over 4,000 two-wheelers and electric motorbikes deployed.
- The strategic entry of MAuto into the Rwandan market, driven by the country's supportive regulatory environment and political will for electric mobility, aligning with President Kagame's commitment to phase out gasoline bikes.
- The focus on affordability through local assembly plants, with plans to start assembling motorbikes in Rwanda to reduce acquisition costs and enhance accessibility to eco-friendly transportation options.
The growing need to decarbonise the global economy through low-carbon means has led to a more rapid adoption of e-mobility solutions in Africa. MAuto, an e-mobility company that has been operating in Benin and Togo for little over six months is spreading its wings to the East African region. CNBC AFRICA spoke to Shegun Bakari, the CEO to understand its entry into the Rwandan market. Bakari highlighted the company's successful commercial activities in Benin and Togo, where they have already deployed 4,000 two-wheelers and 4,000 electric motorbikes, with close to 200 swap stations operational. This has positioned MAuto as the largest electric mobility company in Africa. Now, the company is eyeing expansion into Eastern Africa, with Rwanda being a strategic entry point due to its supportive regulatory environment and strong political will for electric mobility. Bakari mentioned the clear commitment of Rwandan President Kagame to phase out gasoline bikes in the country, aligning with MAuto's mission to promote eco-friendly transportation.
To drive their growth trajectory, MAuto is focusing on countries with a high market for two-wheelers and a conducive environment for electric mobility adoption. The company plans to address the affordability factor by establishing local assembly plants. Bakari announced their intention to start assembling motorbikes in Rwanda by the end of the year, aiming to produce 100 bikes per day. This strategy is set to reduce the acquisition costs of e-bikes in Africa and enhance accessibility to green transportation options.
Financially, MAuto is backed by the Africa Transformation and Industrialization Fund, which has already invested 50 million equity in the company. They are in the process of raising an additional 100 million to support their expansion plans. Bakari expressed confidence in their ability to attract funding, citing the success of their deployment strategy in Benin and Togo. Despite the global economic slowdown and uncertainties, he believes that the ecological transition sector continues to attract investments due to its alignment with the global sustainability agenda.
As MAuto ventures into the Rwandan market, their emphasis on sustainable practices and local manufacturing signifies a step towards promoting green mobility solutions in Africa. The company's commitment to addressing environmental challenges while contributing to the achievement of Sustainable Development Goals demonstrates their vision for a greener and more sustainable future in the region.
