<h1>Why We Invested in Sawa Energy: Creating Accessible Clean Energy for East Africa</h1><figure class="image"><img src="/uploads/SAWA_ENERGY_TEAM_52_6d614f76bd.JPG" alt="Founders of Sawa Energy providing solar solutions for businesses in Rwanda and Uganda."></figure>Africa holds enormous potential for clean energy, especially solar, yet struggles with<a href="https://www.brookings.edu/articles/addressing-africas-dual-challenges-climate-change-and-electricity-access/"> electricity access</a>. The continent receives minimal&nbsp;<a href="https://climatepromise.undp.org/news-and-stories/west-africa-has-great-potential-solar-energy-its-time-release-it#:~:text=It%20seems%20the%20problem%20is%20widespread%20across%20the%20continent.%20In%202021%2C%20only%200.6%20percent%20of%20the%20%24434%20billion%20dollars%20invested%20globally%20in%20renewable%20energy%20production%20went%20to%20African%20countries%2C%20the%20lowest%20investment%20since%202011.">renewable energy investment</a>—only 0.6% of the $434B global investment in 2021, the lowest since 2011. This lack of funding impacts business productivity across Africa, which faces ongoing energy reliability issues.<a href="https://www.sawaenergy.com/ourstory">Sawa Energy</a>, based in Uganda and Rwanda, builds and finances solar systems tailored for commercial businesses. Their model enables small and medium-sized enterprises to access solar without upfront costs, saving 10% to 30% on electricity bills and gaining reliable energy access.Renew Capital invested in Sawa Energy to support its vision of a sustainable energy future in Africa.<h2>Strong Founders</h2>Sawa Energy, launched in 2021, has founders with more than a decade of renewable energy experience.&nbsp;<a href="https://www.linkedin.com/in/samuel-kaufman-cpa-a6387835/">Samuel Kaufman</a>, the Chief Executive Officer (CEO), along with co-founders&nbsp;<a href="https://www.linkedin.com/in/jordan-zipkin/">Jordan Zipkin</a>, Chief Investment Officer(CIO) and&nbsp;<a href="https://ca.linkedin.com/in/guillaumecharpenel">Guillaume Charpenel</a>, board member and former Managing Partner, lead the company’s mission of empowering local partners, reducing emissions and delivering investor returns.<h2>Demonstrated Traction</h2>As one of the largest solar suppliers in Rwanda, Sawa Energy has developed&nbsp;<a href="https://www.duurzaaminvesteren.nl/projecten/sei-24-solar-u-ltd">32 projects&nbsp;</a>totaling 2.6 MWp and 1 MWh across Rwanda and Uganda. Their clients include data centers, banks, schools and nonprofits.&nbsp;<h2>Orientation Toward Growth</h2>Sawa Energy aims to become East Africa’s largest private solar provider by 2030, addressing energy needs with reliable and affordable clean energy solutions.“Sawa Energy's approach to financing solar is a game-changer in the region. By facilitating the transition to clean and renewable energy sources, Sawa Energy is addressing immediate electricity needs while paving the way for a greener and more resilient energy landscape across the continent.” — Laura Davis, Managing Partner and Co-CEO of Renew Capital.

Rwanda

Uganda

SAWA ENERGY TEAM-52.JPG

Why We Invested in Sawa Energy: Creating Accessible Clean Energy for East Africa

<h1>Why We Invested in Octavia Carbon: A Climate Game-Changer</h1><figure class="image"><img src="/uploads/Linkedin_Templates_10_fd0f99e3ea.png" alt="A photo of the Octavia Carbon team demonstrating their direct air carbon capture technology in the Nairobi, Kenya lab and factory."></figure>Octavia Carbon, Kenya-based and the first Direct Air Capture (DAC) startup in the Global South, is leveraging the country’s geothermal energy, favorable geology and local talent to pioneer carbon capture solutions. Their mission: to pull CO₂ from the air, fight climate change and create carbon credits that offset emissions affordably.<h2>Why Kenya?</h2><ul><li>Geothermal power provides over 85% of the energy needed for DAC, making carbon capture more affordable and greener.</li><li>The Rift Valley's basaltic rock can safely store CO₂ for millennia, offering a long-term carbon solution.</li></ul><h2>Innovation and Traction</h2><ul><li>Octavia’s Project Hummingbird: Africa’s first DAC plant will capture 1,000 tons of CO₂ annually​ (<a href="https://vc4a.com/ventures/octavia-carbon/">VC4A</a>).</li><li>Five large-scale DAC machines have been built by Octavia and the company plans to move to mass production soon.</li><li>Carbon credits are already offered by Octavia, aligning with global climate goals ​(<a href="https://fsdafrica.org/blog/using-direct-air-carbon-capture-technology-to-address-emissions/">FSD Africa</a>).</li></ul><h2>Growth Potential</h2>Octavia Carbon partners with global platforms like Cella, Klimate.co and Tomorrow’s Air to scale DAC technology. Their model will hopefully help Kenya and Africa emerge as a carbon credit leader, building resilience through technology and sustainable economic growth​ (<a href="https://nextbillion.net/news/kenyan-climate-tech-startup-octavia-carbon-secures-funding-for-carbon-capture-technology/">NextBillion</a>).<a href="https://www.wri.org/blog/2020/03/to-unlock-the-potential-of-direct-air-capture-we-must-invest-now">Investing in DAC</a> now is critical to reducing future costs. This, based on the current pace of climate change, will be ever more important as carbon dioxide removal becomes even more necessary (<a href="https://www.wri.org/insights/direct-air-capture-resource-considerations-and-costs-carbon-removal">WRI</a>).&nbsp;<h2>Quote from Renew Capital</h2>"Octavia Carbon is redefining climate action by leveraging Kenya’s strengths. This investment reflects our belief in Africa’s ability to lead in this space." – Lucas Robinson, Principal - Consulting, Renew Capital.

Learn why we invested in Octavia Carbon, an early-stage startup using Direct Air Capture (DAC) technology to extract CO₂ from the atmosphere and deliver innovative climate solutions.

Linkedin Templates (17).png

Why We Invested in Octavia Carbon: A Climate Game-Changer

<h1>Why We Invested In Opareta: Building Digital Infrastructure For Mobile Money Agent Networks</h1><figure class="image"><img src="/uploads/Whats_App_Image_2024_01_09_at_08_30_28_2_b96ab2f0ce.jpeg" alt="The Opareta founder and team visiting one of their mobile money operator shop in Kampala, Uganda."></figure>Mobile money transfers have increased access to financial services for unbanked and underbanked populations globally. Mobile money adoption in Africa is the highest in the world and is growing rapidly. In 2023, mobile money transactions in Africa totaled $919B, facilitated by 8.3 million active agents across the globe, according to the&nbsp;<a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">GSMA</a> report. There are 237 million active mobile money accounts and 856 million registered accounts across the continent. Amid this booming landscape,&nbsp;<a href="https://opareta.com/">Opareta</a> stands out.&nbsp;Opareta automates commercial operations across agent networks with a suite of tools designed to boost operational efficiency, manage liquidity, mitigate fraud and drive growth. Their innovative approach integrates agent management SaaS, performance analytics, field team management, Know Your Customer (KYC) and customer relationship management (CRM) services, financial process facilitation and loan management tools. By building an intuitive mobile app, Opareta enhances the digital transformation of the industry from analog methods to a seamless digital experience. These features streamline processes and enhance the efficiency and reliability of mobile money services, which are pivotal in the digital transformation of financial services in Africa.Renew Capital invested in Operata to help transform the mobile money ecosystem by digitizing the agent networks.&nbsp;"We tackle this issue directly with our digital operating system, which enhances liquidity management, performance analytics and digital identity creation for agents. This change not only boosts operational efficiency but also advances financial inclusivity." — Mike Schwartz, co-founder of Opareta.<h2>Demonstrated Traction</h2>Since launching in Uganda, Opareta has supported mobile money agents to secure float and earn higher commissions. Opareta has expanded its strategic partnerships with mobile money operators in several countries, including Uganda, Gambia, Sierra Leone, DRC, Angola and Zambia.&nbsp;<h2>Orientation Towards Growth</h2>Opareta has made several strategic moves that position it for significant growth. These early steps highlight Opareta's commitment to innovation and its potential to transform the mobile money sector."We are thrilled to back growth-oriented companies like Opareta. Their approach aligns with the needs of an evolving financial landscape, driving efficiency and providing mobile money operators with tools that offer transparency, autonomy and insightful data," —&nbsp; Laura Davis, Managing Partner and co-CEO of Renew Capital.

Learn why Renew Capital invested in Opareta, an African startup building digital infrastructure for mobile money agent networks in Kampala, Uganda.

WhatsApp Image 2024-01-09 at 08.30.28 (2).jpeg

Why We Invested In Opareta: Building Digital Infrastructure For Mobile Money Agent Networks

<h1>Why We Invested in MPost: Facilitating Universal Access to Postal Addresses in Africa</h1><figure class="image"><img src="/uploads/Mpost_1_e6a08f59c4.png" alt="A customer using MPost mobile service to receive a package."></figure>Reports indicate that billions of people worldwide lack a physical address. In Africa, where the population is expected to reach&nbsp;<a href="https://www.afdb.org/en/knowledge/publications/tracking-africa%E2%80%99s-progress-in-figures/human-development#:~:text=By%202050%2C%20the%20African%20population,by%20more%20than%20fertility%20rates.">2.4 billion people by 2050</a> and with two-thirds concentrated in&nbsp;<a href="https://amalicities.africa/the-latest-trends-the-urban-governance-implications-of-african-urbanisation/#:~:text=Africa's%20urban%20population%20is%20projected,be%20concentrated%20within%20urban%20areas.">urban areas</a>, the need for accessible postal services has never been more urgent. Inadequate infrastructure leaves a significant portion of the population without access to essential services such as government services notifications, banking and e-commerce. Traditional solutions like shared Post Office (P.O.) boxes often fall short, plagued by challenges such as identity verification, document loss and privacy concerns.MPost is changing this by converting phone numbers into functional addresses. The company is making it easier than ever to receive mail by leveraging Africa's extensive mobile connectivity, where, as of 2022,&nbsp;<a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-economy/wp-content/uploads/2024/05/ME-SSA-2023.pdf">980 million</a> people in sub Saharan Africa have access to a SIM card.MPost is transforming how individuals send and receive mail and parcels by allowing users to register for their service by linking their mobile phone number to a postal address via SMS, USSD code or online platform. Besides mail delivery, MPost’s solution also addresses a critical market gap by enabling fintechs, banks and governments to conduct Know Your Customer (KYC) checks on individuals without traditional postal addresses.The investment from Renew Capital underscores MPost's role in bridging the postal infrastructure gap and propelling Africa's postal services toward greater accessibility and efficiency.<figure class="image"><img src="/uploads/Mpost_2_c28b88dca6.png" alt="A photo of the MPost team in Nairobi, Kenya"></figure><h2>Strong Founder</h2><a href="https://ke.linkedin.com/in/twahirmohamed">Twahir Mohamed</a>, co-founder and CEO of MPost, launched the company in 2016 to address the inefficiencies of postal systems, starting in Kenya. He has extensive expertise in digital technology, holding a postgraduate degree in Artificial Intelligence and Machine Learning from The University of Texas at Austin, alongside a bachelor’s degree in Information Technology from Jomo Kenyatta University of Agriculture and Technology, Kenya. Twahir's grit, leadership and technical acumen have been pivotal in MPost's pioneering efforts to modernize postal services and enhance accessibility across Africa.<h2>Demonstrated Traction</h2>Some of MPost’s key milestones:&nbsp;<div class="raw-html-embed">
 <link rel="stylesheet" href="styles.css">

</div><ul><li>In 2019, MPost raised&nbsp;<a href="https://afrikanheroes.com/tag/twahir-mohamed/">$1.9M</a> in its Series A funding round led by Cape Town-based VC firm HAVAÍC, along with new investors from South Africa, Australia, Japan, the U.S., Canada and Nigeria, including blue-chip institutions, VC funds and high-net-worth individuals.</li><li>MPost has partnered with Kenya’s state-owned Postal Corporation (Posta) and mobile network operator, Safaricom, to offer digitized postal office boxes.</li><li>MPost was selected to be part of the 10 startups from Africa in the 2023 Techstars cohort, a renowned accelerator program supporting promising startups.</li><li>MPost currently has 80,000 active users and 300,000 registered users across Kenya, Rwanda and Burundi.</li><li>In 2024, MPost launched e-P.O.Box in Rwanda in partnership with the national postal service i-Posita.</li><li>In 2024, MPost was featured in&nbsp;<a href="https://www.linkedin.com/posts/renew-capital_mpost-renewcapitalportfolio-globalstage-activity-7164248351763369984-MgL0?utm_source=share&amp;utm_medium=member_desktop">Times Square</a>.</li></ul><div class="raw-html-embed"></div><h2>Orientation Towards Growth</h2>In 2023 MPost relocated its headquarters from Nairobi, Kenya to Kigali, Rwanda, as part of its expansion strategy. Alongside its existing operations in Rwanda, Kenya and Burundi,&nbsp;<a href="https://kenyanwallstreet.com/mpost-partners-with-yobante-for-deliveries/">MPost forged a partnership</a> with Yobante Express, a delivery company, to extend its services into Zambia and other African nations. Additionally, MPost is actively exploring opportunities in North America to facilitate smoother e-commerce transactions between Africa and the continent.“MPost is addressing critical infrastructural gaps in Africa's postal services. This innovation not only enhances accessibility to essential services but also supports the e-commerce sector by enabling secure and reliable deliveries. As Africa continues to urbanize and digitalize, solutions like those which MPost offers are groundbreaking.” – Laura Davis, Managing Partner and co-CEO of Renew Capital.

Discover how MPost is transforming postal access in Africa by turning phone numbers into addresses.

Mpost 1.png

Why We Invested in MPost: Facilitating Universal Access to Postal Addresses in Africa

<h1>Why We Invested in BuuPass: Easing Intercity Travel Across Africa</h1><figure class="image"><img src="/uploads/IMG_2464_15e39b05ec.jpeg" alt="A photo of Renew Capital Angel investors posing alongside BuuPass founders at their office in Nairobi, Kenya."></figure>Over 30 million Africans rely on buses for inter-city and cross-border transportation daily, contributing to a $40B domestic transport industry annually. However, transportation systems in the region are underfunded and lack the necessary technology to operate efficiently. Historically, bus operators have relied on unreliable paper ticketing, which requires customers to appear in person and wait in long lines to purchase bus tickets. Furthermore, companies often oversell bus tickets because they lack a digital system to track the number of tickets sold, resulting in customers arriving on the day of their travel with a paid-for ticket in hand, but no seat available on the bus.&nbsp;<a href="https://buupass.com/">BuuPass</a> provides millions of travelers with ease and convenience through digital schedules, online bookings and streamlined intercity travel. BuuPass, operating on a B2B2C model, partners with transport companies by providing a platform that digitizes their ticketing and bus management to minimize overselling, increase asset utilization and increase convenience for their customers.Renew Capital invested in BuuPass because of its growth potential, strong founders and significant impact on easing transport challenges in Africa. Other investors in BuuPass include Founders Factory Africa, FrontEnd Ventures and Google for Startups Black Founders Fund.&nbsp;<figure class="image"><img src="/uploads/Whats_App_Image_2022_09_28_at_09_52_18_6ccec1449c.jpeg" alt="A photo of BuuPass founders being congratulated at a startup event."></figure>Photo courtesy of BuuPass<h2>Strong Founders</h2>BuuPass was founded in 2016 by&nbsp;<a href="https://ke.linkedin.com/in/soniakabra">Sonia Kabra</a> and&nbsp;<a href="https://ke.linkedin.com/in/wyclife-omondi-86054064">Wyclife Omondi</a>. Sonia, from India, and Wyclife, from Kenya, met during college in the U.S. They identified transportation as a significant challenge in their home countries and envisioned improving the sector through digitalization. Their innovative idea gained traction when they secured $1M in funding to bring their concept to the market through the Hult Prize award supported by President Bill Clinton. With visionary leadership, they are quickly establishing BuuPass as a key player in Africa’s transportation sector.<h2>Demonstrated Traction</h2>BuuPass’ key milestones include:<ul><li>Since launching first in Kenya and offering both domestic and international routes, BuuPass has sold over&nbsp;<a href="https://techcabal.com/2024/04/30/buupass-acquires-quickbus/#:~:text=Since%20launching%20in%202016%2C%20Buupass%20has%20sold%20over%206%20million%20travel%20tickets%20and%20generated%20over%20%24100%20million%20in%20ticket%20sales.%20The%20platform%20%E2%80%9Ccovers%20national%20and%20cross%2Dborder%20routes%20in%20East%20and%20Southern%20Africa%20and%20has%20served%20over%2016%20million%20passengers%2C%E2%80%9D%20the%20company%20said.">6 million travel tickets</a> and generated more than $100M in ticket sales.</li><li>BuuPass has strategic partnerships with African telcos and super apps like M-PESA. Through its partnership with the M-PESA app, a financial super app, it provides booking services to around 10 million Kenyans who use the mobile money app.</li><li>As of 2024, BuuPass has raised a pre-seed funding round of&nbsp;<a href="https://techcrunch.com/2023/02/13/buupass-raises-1-3m-to-scale-mobility-sector-digitization-in-africa/">$1.3M</a> from investors including&nbsp;<a href="https://www.renewcapital.com/newsroom/press-release-renew-capital-invests-in-buupass-a-kenyan-tech-transport-company">Renew Capital</a>, Founders Factory Africa, FrontEnd Ventures, Adaverse, Gullit, Five35, Changecom, XA Network, Ajim Capital, Artha Ventures, Daba Finance, Google Black Founders Fund and several angel investors.</li><li>In 2024, BuuPass made headlines when they announced an investment from veteran Silicon Valley investor&nbsp;<a href="https://techcabal.com/2024/02/28/buupass-secures-investment-from-silicon-valley-legend-tim-draper/">Tim Draper</a> after being selected to pitch for the African region on the show "Meet the Drapers." Tim Draper is known for funding major companies like Coinbase, Baidu, Tesla, Skype, SpaceX, Twitch and Hotmail.</li></ul><h2>Orientation Towards Growth</h2>BuuPass has expanded its presence across Africa by acquiring&nbsp;<a href="https://techcabal.com/2024/04/30/buupass-acquires-quickbus/">QuickBus</a> in 2024. This acquisition added international routes across 16 African countries, including Kenya, Tanzania, South Africa, Malawi, Nigeria, and Ghana. It also granted BuuPass access to the South African and Nigerian markets, supporting their expansion plans to&nbsp;<a href="https://disruptafrica.com/2024/05/20/kenyan-mobility-startup-buupass-plans-to-enter-8-new-african-markets-by-2025/">eight more countries</a> by 2025.&nbsp;"BuuPass is not only assisting transport operators in running more efficient businesses but also supporting a connected Africa. Efficient transportation is a crucial step in economic development, and BuuPass is an exciting part of the continent's transition." — Laura Davis, Managing Partner and co-CEO of Renew Capital.

Find out why Renew Capital invested in BuuPass and how it's enhancing intercity travel in Africa with digital ticketing solutions.

IMG_2464.jpeg

Why we Invested in BuuPass: Easing Intercity Travel Across Africa

<h1>Why We Invested in Badili: Charting a Sustainable Digital Future through Recommerce</h1><figure class="image"><img src="/uploads/Renew_Capital_March202024_1893_1_815d22e05f.jpg" alt="An image of Badili founder holding a refurbished smartphone with team members at the Nairobi office, showcasing the company’s sustainable technology."></figure>Africa has undergone a transformative mobile phone revolution, yet the momentum of&nbsp;<a href="https://www.trustonic.com/opinion/what-are-the-barriers-to-smartphone-expansion-across-africa/">smartphone access</a> on the continent is still catching up. Concurrently, the environmental toll of smartphone production has become a pressing global concern, with production and manufacturing accounting for a staggering 80% of a smartphone's total carbon footprint. Recognizing the urgency,&nbsp;<a href="https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/wp-content/uploads/2023/02/Strategy-Paper-Circular-Economy-Mobile-Devices.pdf">GSMA Intelligence</a> highlights that extending the lifespan of smartphones by just one year could mitigate up to 21.4 million metric tons of CO2 annually by 2030. Immediate action is imperative, and in this context, recommerce emerges as a pivotal force.To tackle this challenge the refurbished mobile device market is set to exceed $140B by 2030, experiencing a remarkable surge from $50B&nbsp; in 2020 according to GSMA. Badili, an East Africa-based company is leading the recommerce revolution in Africa by providing a platform where people can buy used and refurbished smartphones safely and affordably. Most of their devices cost less than half their original price and all come with a 12-month warranty.Renew Capital invested in Badili because of its growth potential, strong founders and significant impact.<figure class="image"><img src="/uploads/Renew_Capital_March202024_1838_8c1f592f3b.jpg" alt="An image of the Badili smartphone warranty cover details, explaining coverage and benefits for refurbished devices."></figure><h2>Strong Founders</h2>Badili, at the forefront of Africa's recommerce movement, was founded in 2022 by&nbsp;<a href="https://ke.linkedin.com/in/rishabh-lawania-15a74159">Rishabh Lawania</a> and Keshu Dubey. Initially concentrating on establishing a reliable platform for buying and selling pre-owned smartphones in Kenya, Badili has expanded its reach to Uganda and Tanzania. The inspiration behind the establishment of Badili stemmed from Lawania's witnessing a colleague facing legal consequences for inadvertently purchasing a stolen phone. As a result, the company is committed to providing safe and reliable used phones in Africa.Both founders have a wealth of experience in the technology sector. Before Badili, Rishabh and Keshu co-founded WeeMedia, a content-as-a-service platform for Africa, which operates WeeTracker.com, Gadgets-Africa.com, AfriCo and Xeler8, a deal-sourcing research platform.<h2>Demonstrated Traction</h2>Badili has established refurbishing centers in Kenya, Tanzania and Uganda, and is rapidly becoming a major player in the mobile device industry through strategic partnerships.<ul><li><a href="https://badili.ke/">In Kenya</a>, they have partnered with major ecommerce platforms including Jumia, Kilimall, Jamboshoppe and Carrefour. They also have payment partnerships with Absa and LipaLater.</li><li>In November 2023,&nbsp;<a href="https://www.techafricanews.com/2023/11/22/airtel-uganda-partners-with-badili-africa-to-offer-affordable-refurbished-smartphones-boosting-accessibility/">Airtel Uganda</a>, one of the country’s leading telecom companies, announced a collaboration with Badili to accelerate smartphone adoption and improve internet access for Ugandans.</li><li>In the same year, Badili was recognized as one of the&nbsp;<a href="https://www.linkedin.com/posts/badili-commerce_great-way-to-end-the-year-badili-was-listed-activity-7144662100068524033-wL9s?utm_source=share&amp;utm_medium=member_desktop">top 100 most innovative startups</a> by MyStartupAfrica.</li></ul><h2>Orientation Towards Growth</h2>In January 2024, Badili announced that it had raised a seed round led by E3 Capital through E3 Capital’s Low Carbon Economy Fund. This funding will enable Badili to expand into new markets beyond the East African region, ultimately contributing to the enhancement of Africa’s digital infrastructure."We invested in Badili because we see a unique opportunity and a strong founder. Badili provides refurbished consumer electronics that are in high demand and the business model is built on principles of circular economy and climate sustainability making it an exciting investment for Renew Capital. By supporting Badili, we are contributing to a sustainable digital future for Africa through recommerce." — Laura Davis, Renew Capital founder and co-CEO.

In this blog, explore why Renew Capital invested in Badili, a leader in Africa’s refurbished smartphone market.

RenewCapitalMarch202024-1893 (1).jpg

Why We Invested in Badili: Charting a Sustainable Digital Future through Recommerce

<h1>Why We Invested in Roam: Investing in Roam to Electrify Africa's Transport Sector</h1><figure class="image"><img src="/uploads/04_Roam_Charge_b552c764b5.jpg" alt="An image of a Roam electric bike owner at an EV charging station showing an electric motorcycle battery."></figure>Photo courtesy of Roam&nbsp;As a result of increasing urbanization and the subsequent reliance on fossil fuels,&nbsp;<a href="https://www.wilsoncenter.org/article/battle-earths-climate-will-be-fought-africa#:~:text=But%20Africa%E2%80%99s%20CO2%20output%20per%20person%20has%20been%20growing%20fast%E2%80%94much%20faster%20than%20its%20population.%C2%A0%C2%A0%20That%20is%20to%20be%20expected%20as%20increases%20in%20income%20and%20urbanization%20lead%20to%20higher%20per%20capita%20fuel%20and%20electric%20consumption.">Africa’s CO2 output</a> per person has been growing faster than its population. Furthermore, the risk of climate disasters disproportionately affects low-income countries. The need for clean transportation options to service Africa’s growing urban populations is therefore critical to mitigating the impact of climate change.&nbsp;Africa currently contributes&nbsp;<a href="https://tcc-gsr.com/wp-content/uploads/2023/08/2.1-Africa-Regional-Overview.pdf">less than 1%</a> to global vehicle production and heavily relies on used vehicle imports. The market for electric vehicles (EVs) on the continent has a promising growth potential. It is expected to reach&nbsp;<a href="https://www.fairplanet.org/story/africa-electric-vehicle-charging-station-startup/#:~:text=USD%2021.39%20billion%20by%202027%2C%20up%20from%20USD%2011.94%20billion%20in%202021.">$21.39B by 2027</a>, up from $11.94B in 2021 driven in part by the demand for electric buses and two and three-wheelers for public transport needs. However, the uptake of EVs has faced challenges due to underdeveloped infrastructure and electricity challenges in the region.&nbsp;To tackle these challenges, Roam Electric is building affordable and eco-friendly electric buses and motorcycles that are designed and manufactured in Africa. Furthermore, Roam Electric is building solar charging infrastructure in Kenya to address the electricity challenges.Renew Capital invested in Roam because of its strong founders, demonstrated traction and the company’s orientation towards growth.<figure class="image"><img src="/uploads/25_Roam_Rapid_1_4f43f34a83.jpg" alt="An image of a Roam Rapid electric bus that is cost-efficient and has zero tailpipe emissions."></figure>Photo courtesy of Roam&nbsp;<h2>Strong Founders</h2>Roam Electric, founded in 2017 by&nbsp;<a href="https://www.linkedin.com/in/filip-lovstrom?originalSubdomain=ke">Filip Lövström</a> and&nbsp;<a href="https://ke.linkedin.com/in/mikael-g%C3%A5nge-a7334317a">Mikael Gånge</a>, seasoned professionals in the energy industry, started as a research project at a Swedish university. Recognizing an opportunity in electric vehicles tailored for the African market, the company evolved its focus from&nbsp;<a href="https://techcrunch.com/2023/09/18/roam-move-ev-bus/#:~:text=Founded%20in%202017%20by%20Filip%20L%C3%B6vstr%C3%B6m%20and%20Mikael%20G%C3%A5nge%2C%20Roam%20previously%20specialized%20in%20auto%20conversions%2C%20before%20moving%20to%20electric%20vehicle%20production.">conversions</a>. After rigorous development, Roam Electric now produces electric motorcycles and buses, designed especially for emerging markets, with Kenya as its initial target.These vehicles offer significant carbon emission reductions, with electric motorcycles&nbsp;<a href="https://www.roam-electric.com/about">cutting emissions</a> by over 90% and electric buses by 80%. Roam Electric's commitment to sustainability garnered it recognition as a finalist for the prestigious&nbsp;<a href="https://earthshotprize.org/winners-finalists/roam/">Earthshot Prize</a> in 2022.The company's core mission is to provide sustainable transportation solutions for African markets, where reliance on public transportation is widespread.&nbsp;<h2>Demonstrated Traction</h2>Roam Electric has three main products designed to suit the East African market.&nbsp;<ul><li>The Roam Rapid Electric Bus has a range of over 360 kilometers (224 miles) and can seat up to 90 people. It is designed to carry passengers along major corridors and on routes such as airport transfers.&nbsp;</li><li>The Roam Move Electric Bus is a smaller bus designed to compete with the traditional&nbsp;Matatu.&nbsp;&nbsp;</li><li>The Roam Air is an electric motorcycle adapted for the local market, characterized by a dual battery with a 180 km (112 miles) range. It can be charged freely in any outlet where a phone can be charged, without infrastructure dependency. In July of 2023, Roam opened a plant in Nairobi with the capacity to produce&nbsp;<a href="https://cleantechnica.com/2023/07/25/president-of-kenya-william-ruto-inaugurates-roam-park-east-africas-largest-electric-motorcycle-assembly-plant/">50,000</a> bikes a year.</li><li>Roam Hub -&nbsp;Roam currently has&nbsp;<a href="https://cleantechnica.com/2024/04/18/roam-teams-up-with-quickmart-to-introduce-roam-hub-charging-stations-for-electric-motorcycles-in-kenya/">four active</a> Roam Hub charging stations spread out within Nairobi.</li></ul><h2>Orientation Towards Growth</h2>Roam raised $24M in a Series A round, including an up to $10 million debt commitment from the U.S. International Development Finance Corporation (DFC), to scale the production of electric motorcycles and buses. Equator, an Africa-focused climate tech venture capital fund, led the round. Other investors in the round include One Ventures, TES Ventures, The World We Want, One Small Planet and Renew Capital.Roam and County Bus Service are planning to introduce&nbsp;<a href="https://www.roam-electric.com/post/roam-and-county-bus-service-partner?s=09">10 CBS electric buses</a> by the end of 2024, and 200 CBS electric buses across Kenya by the end of 2026. Roam Electric has also partnered with various companies, including&nbsp;<a href="https://kenyanwallstreet.com/bolt-to-lease-motorbikes-from-roam-ampersand/">Bolt</a>, which offers ride-hailing, micromobility rental, food and grocery delivery, and car-sharing services. Bolt's courier riders can purchase an electric motorbike at an affordable rate through the financing company MKOPA.&nbsp;“We invested in Roam Electric because of its potential within the electric vehicle sector on the continent. Roam is focused on offering affordable EVs, but they have an eye for quality, which we found rare relative to alternatives. I, for one, love driving my Roam motorcycle around Kigali. Furthermore, the founders of Roam bring considerable experience from the energy industry to the table, and we are proud to support their vision.” — Matt Davis, founder and co-CEO of Renew Capital&nbsp;

Discover why Renew Capital invested in Roam to electrify Africa’s transport sector with affordable, eco-friendly buses and motorcycles.