The Fund for Export Development in Africa (FEDA), the development equity impact investment arm of the African Export-Import Bank (Afreximbank), has announced a strategic investment of $75 million in Spiro, a company focused on electric vehicle growth in Africa. This investment aligns with Afreximbank’s broader automotive strategy to develop integrated manufacturing ecosystems across the continent.
In recent months, Nigeria has taken significant steps to promote the adoption of electric vehicles (EVs) and compressed natural gas (CNG) as part of its efforts to transition to clean energy. The Federal Government launched new National Occupational Standards for CNG and EVs in July, and the Nigerian Senate passed a bill aimed at facilitating the country’s transition to EVs in November.
According to Afreximbank’s President, Dr. George Elombi, the partnership between FEDA and Spiro marks a major step toward deepening Africa’s industrial base and promoting intra-African trade. The investment is expected to stimulate local vehicle manufacturing, strengthen regional integration, and enhance trade flows, while also fostering skills and technology transfer, creating employment opportunities, and reducing the continent’s reliance on imported second-hand vehicles.
Spiro’s Founder, Gagan Gupta, welcomed the investment, stating that it will help accelerate the company’s mission to transform mobility and energy distribution across Africa. The company plans to expand its battery swapping infrastructure and integrate renewable energy sources into its energy mix, unlocking substantial upside in energy distribution.
Marlene Ngoyi, CEO of FEDA, noted that Spiro’s success demonstrates the strength and scalability of its business model, which has achieved rapid growth and strong market adoption. The company’s integrated approach has built a platform that is both commercially viable and socially impactful, delivering affordable and sustainable mobility solutions across Africa.
The investment by FEDA is a significant step towards promoting electric vehicle growth and clean energy transition in Africa. As the continent continues to develop its automotive industry, partnerships like this one will play a crucial role in shaping the future of transportation and energy distribution. With the backing of Afreximbank, Spiro is well-positioned to drive innovation and growth in the sector, creating a more sustainable and connected Africa.
