(Ecofin Agency) - Electric motorbike manufacturer Spiro wants to expand its activities in French-speaking West Africa where it has been present for over a year. The company recently secured a loan from Société Générale to finance its expansion project.

Spiro has signed a $63 million loan agreement with the Société Générale banking group, acting through its subsidiaries in Togo and Benin. The electric mobility company, which operates in Benin, Togo, Rwanda, and Uganda, will receive an initial tranche of $35 million, 70% of which will be guaranteed by GuarantCo.

Spiro will use the funds to get new bikes and set up battery charging and swapping stations in Benin and Togo. Concretely, it will add over 15,700 additional electric motorbikes to its fleet.

According to Spiro’s Managing Director Jules Samain, the partnership with Société Générale and GuarantCo will expand the company's current electric mobility offering in Benin and Togo. The project targets nearly 400,000 taxi-bike riders in these two West African countries. While the electric mobility sector has many environmental advantages, it remains underdeveloped on the continent.

Okan Partners was Spiro’s financial advisor for the loan. The advisor helps companies that want to establish themselves on the continent. In an October 2022 report on urban mobility in Africa, Okan Partners estimated that Africa’s demand for urban mobility services was set to accelerate, spurred by strong demographic growth. At the same time, the report highlighted the fact that mass transit systems in Africa are predominantly artisanal, and account for 90% of mass mobility in major African cities.

Chamberline Moko