Debt drought? Zembo secures $1m loan

July 13, 2025

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Zembo, a Uganda-based electric motorcycle company, has received a loan of $1 million from Dutch development bank FMO. Zembo sells electric motorcycles to drivers directly and through third parties. It operates a battery-as-a-service model through a network of 29 battery-swap stations. The FMO loan will finance the acquisition of batteries and chargers.

  • African electric motorcycle startups have raised nearly $20 million in funding this year, mainly to scale their operations. They include Ghana’s Kofa ($8.2 million), Kenya’s ARC Ride ($5 million), Uganda’s Gogo Electric ($3 million) and South Africa’s Scoothero ($0.2 million).  

  • Most mobility funding has been in the form of equity. Zembo is the first to raise debt since Kofa’s $4.3 million in April, and Gozem’s $15 million and South Africa’s Everlectric’s $0.2 million in February.  

  • Our take: Most funding for mobility startups in Africa has been equity-based but… Read more (2 min)

Electric cars are uncommon in Africa, and the majority of Africans have never seen nor driven one. That was the case for Olatona Olatomiwa, a Nigerian software developer, who knew little about EVs, until one day he saw a US-based friend post a picture of himself in a Tesla car. Since then, he has been enthralled by electric cars and hopes to own one soon. 

  • Nigeria's EV market is in its nascency but growing fast as rising fuel prices push Nigerians to look for cheaper alternatives. The country has less than 20,000 EVs, including two- and three-wheelers. 

  • Some Nigerians like Mr Olatomiwa have dreams of buying electric cars, but face stumbling blocks, especially high prices. Erratic power supply does not help, while Nigeria still has only a few public fast charging stations. 

  • Read Mr Olatomiwa’s full view here… (2 min)

Morocco already has a strong automotive base, with European manufacturers operating there for years. This has fostered local expertise and developed robust supply chains, which can now be redirected towards electric vehicle (EV) assembly, says Tony Tiyou, CEO of Renewables In Africa. The electric two-wheeler segment alone grew by over 70% in the first half of the year.

  • There are concerns around geopolitical trade dynamics. If companies use Morocco to bypass trade barriers into EU or US markets, the country could face new tariffs. However, Tesla believes that the market has huge potential.

  • Morocco is also leading in battery manufacturing. From cathodes and anodes to full battery systems, the country is producing at scale, mainly for export. This serves as a blueprint for other African countries.

  • Click here to read the full conversation… Read more (2 min)

eWaka Mobility’s Managing Director Celeste Vogel (first from left) meets the company’s team

 

Events

🗓️ Register for public transport electrification in Africa webinar (July 23)

🗓️ Join the battery circularity webinar (July 23)

🗓️ Attend youth EV training programme webinar (July 28)

Jobs

💼 Become a Business Transformation Manager at Zembo (Uganda)

👨🏻‍💼 Join Dodai as Junior Sales Team Lead (Ethiopia)

📊 Manage regional sales at Chery (South Africa)

Various 

🏍 Spiro selected for the 2025 Regional Platforms for Climate Projects (RPCP) Pipeline

💰 Plug-in hybrids are selling better than BEVs in South Africa

🛠️ Zambia urges international EV companies to build plants near copper mines

Seen on LinkedIn 

Vijeta Jangra, Program Manager at ClimateWorks Foundation, says, “For Kenya, EVs are now more than a climate solution. They have become a driving force behind Kenya’s energy security, affordable transport, local innovation and green jobs.”