Expanding Sri Lankan EV firm targets East Africa

From the newsletter

Rise Electrical Motors, a Sri Lankan electric vehicle manufacturer, is planning to enter the East African market via Kenya where it will establish its initial operations. The company manufactures electric motorcycles, scooters, three-wheelers and EV parts. Rise was founded in 2021 but has rapidly grown its dealer network in the South East Asian country to 29.  

• Africa is one of the world’s fastest growing markets for EVs, and this is making it a magnet for global manufacturers. The majority of EV manufacturing investment in Africa is for electric two-wheelers and three-wheelers. 

• The entry of new players into the market is a positive for consumers, as the growing competition is driving down prices. It increases choice, as new EV startups are now specialising in specific market segments. The proliferation of local manufacturing and assembly plants is also creating thousands of new jobs. 

More details

• The company plans to target the low to mid-range price category of between $1,800 and $2,300 to capture a larger market share. While it will import EVs from Sri Lanka initially, the company plans to eventually establish a local manufacturing plant to lower costs.

• In Kenya, Rise’s pricing strategy will pit it against Spiro, Africa’s largest electric motorcycle company. Spiro’s pricing strategy is also similar, with its motorcycles such as the Ekon 450M1 being the cheapest in the market, with its price less than half that of some of its competitors.

• Besides Kenya, Rise is targeting Uganda, Tanzania, Mozambique and Zambia. But it will find a market that is teeming with dozens of fairly new startups in the sector across the region such as Spiro, Roam Electric, Zembo, Gogo Electric, Ampersand, ARC Ride among others, meaning competition is stiff.

• “Sri Lanka’s status within Africa allows for import duty-free access to Africa member states. This is a significant advantage, as a 6% import duty is typically levied on e-bike imports from countries without this status,” said the company.

• The Sri Lankan company’s planned entry into the East African market highlights the growing appeal of Africa to global EV investors. Home to the world’s fastest growing population, demand for EVs is growing fast. However, the industry is still in its nascent stages, which means EV firms are navigating rapidly changing policies.  

• The Africa electric scooter and motorcycle market is experiencing significant growth, with revenue projected to increase from about $220 million in 2025 to around $620 million by 2031, with a CAGR of about 8.6%. This growth is fueled by declining prices, increasing urbanisation, and rising fuel costs. 

• Another notable trend is that investment in Africa’s EV industry is not uniform, with major markets such as South Africa, Morocco, Egypt, Ghana, Nigeria, Kenya and Ethiopia receiving significantly more electric mobility investments than other countries. 

Our take

• By targeting the low-to-mid price range, Rise is positioning itself well for mass adoption. Considering the high operational costs that the sector incurs, this pricing strategy could slim the firm’s margins, which could slow down its expansion plan without external capital injection. 

• While Kenya serves as Rise’s entry point, the broader East African market is already flooded with startups. The company will need strong differentiation—whether through product innovation or financing options—to stand out in the crowded space. 

• The rapid expansion of Africa’s EV sector, particularly in two- and three-wheelers, is fueling job creation. However, African countries should prioritise training of a skilled EV workforce to take advantage of the market’s growth.