(Bloomberg) -- Rwanda seeks to replace gasoline-fueled bikes that are typically used as taxis in its capital with greener alternatives through a new policy that takes effect on Jan. 1.
Authorities in Kigali are set to stop registering internal combustion-engine bikes that account for 55% of the vehicles in the country, said Alfred Byiringiro, the chief technical adviser in charge of transport in the Ministry of Infrastructure. Bikes that are already plying the city’s roads won’t be affected by the policy, he said.
“Vehicles are the main cause of air pollution in cities,” Byiringiro said in an interview. “That’s the main reason for the policy.” But it also builds on tax incentives that have lowered the cost of acquiring an e-bike, he said.
Rwanda has used a mix of policy instruments to accelerate its green-energy transition. The government capped electricity tariffs for charging stations in 2021 and canceled value-added tax on electric vehicles, as well as their spare parts and batteries.
Motorbike taxis, known as boda-bodas, are the main form of last-mile transportation in Kigali and many other African cities. Rising levels of urbanization and a young population present growth opportunities for two-wheeler electric vehicles on the continent. This has caught the interest of companies including Zembo — which provides electric boda-bodas in Uganda — and Roam, a Kenyan-Swedish manufacturer.
Rwanda has a fleet of more than 100,000 bikes that predominantly run on gasoline, with 70% concentrated in Kigali, according to authorities. A shift to greener vehicles would cement demand for e-mobility startups operating in the country, such as Ampersand and Spiro.
“It certainly helps galvanize investors,” Ampersand Chief Executive Officer Josh Whale said. The company, which has more than 4,000 e-bikes in Rwanda, has raised $21.5 million since 2023 and is readying for another funding round, according to its website.
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Spiro, which has 1,300 e-bikes in Rwanda, sees its fleet growing to 20,000 by the end of 2025.
That’s provided the battery-charging infrastructure keeps pace with the fleet expansion.
“We are looking to expand our network for battery swapping stations,” said Kaushik Burman, the CEO of Spiro, which is also planning to raise up to $100 million of funding in the next few months.
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