Expanding Sri Lankan EV firm targets East Africa

• 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. 

• Our take: These investments can only be sustained by continued growth of Africa’s EV market, which remains tiny from a global perspective… Read more (2 min)

Chinese EV firm launches in Ethiopia

• Ethiopia is emerging as a magnet for multinational OEMs, signalling growing investor confidence. However, with players entering the market simultaneously, questions remain as to whether there is enough consumer demand so far.

• GAC’s move aligns with its stated ambition to promote local assembly in Africa. This complements the Ethiopian government’s draft policy seeking to prioritise local assembly over vehicle imports to build domestic capabilities. 

• Our take: Ethiopia’s integrated approach is attracting significant foreign investment and elevating its status as a rising EV hub in the region…. Read more (2 min)

Roam reduces staff count by 8%

• The startup, which mainly sells electric motorcycles and buses, has expanded rapidly since it was founded in 2017. Its revenue hit $2.31 million in 2023, up from just $0.41 million in 2020.   

• The electric motorcycle landscape in Kenya is more competitive than ever. Roam was one of the industry’s pioneers, but the arrival of major players like Spiro and ARC Ride has made the market tougher. 

• Our take: Well-funded startups have an advantage since their deep pockets enable them to scale faster through price undercutting… Read more (2 min)