Startups in Africa's electric mobility sector have raised $1.28 billion across 129 deals between 2019 and early June 2026, according to the TechCabal Insights Deal Tracker. The funding shift signals a move from speculative venture capital to infrastructure-style financing, with debt now accounting for 34% of total capital—up from zero in 2019. This change reflects growing confidence in the sector's revenue models, as lenders increasingly back physical assets like e-buses, electric two- and three-wheelers, battery-swap networks, and fleet financing platforms. The African Development Bank (AfDB) is advancing the Green Mobility Facility for Africa (GMFA), a blended finance initiative expected to mobilize over $300 million to support commercial lending and deploy capital through guarantees and partnerships with banks. Wale Shonibare, AfDB's director of energy financial solutions, policy and regulation, stated the bank now ties support to scalable business models, predictable revenues, and supportive regulations.
Funding has been volatile, fluctuating from $119 million in 2021 to $260 million in 2024, then dipping to $180 million in 2025 before rising to $313 million in the first half of 2026. However, $272 million of that 2026 total came from Spiro, an electric two-wheeler and battery-swap company, indicating concentration rather than broad-based growth. Since 2021, deals of $10 million or more have captured at least 75% of annual funding. Four companies control 82% of all capital, with Spiro and Moove together holding 69%. Nigeria and Benin account for 77% of total investment, though much of that is tied to Moove and Spiro respectively. Kenya stands out for deal diversity, with 39 deals totaling $143 million, positioning East Africa as a hub for experimentation. Ampersand, a Rwandan e-motorcycle firm, claims its vehicles cut operating costs by half, saving riders about $700 annually and increasing take-home pay by 45%. Moove's alternative credit scoring enables drivers to access vehicle ownership and formal credit for the first time. Dieko Ojo of Novastar Ventures noted that affordable, structured debt is critical, as high borrowing costs can slow expansion.
The electric mobility boom is being driven by a handful of companies backed by development lenders, not market-wide momentum. Spiro alone accounted for over 85% of the sector's 2026 funding, revealing how dependent the narrative of growth is on single-player scale-ups. Nigeria's dominance in funding vanishes once Moove is removed, undermining claims of broad regional strength. This concentration makes the sector vulnerable to the performance of a few firms, not the resilience of a maturing industry.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
