Kofa Technologiesa Ghanaian startup specializing in clean and portable battery solutions has partnered with PASH Global, an impact investor, to expand its battery exchange network in Ghana. The initiative plans to deploy 6,000 batteries and set up up to 100 exchange stations across the country, boosting reliable energy access and promoting the use of clean energy, while encouraging the adoption of electric vehicles across Africa.
This expansion, facilitated through a special purpose vehicle (SPV), is supported by a £2.35 million ($3.13 million) investment from the Shell Foundation, with additional co-funding from the UK government through the Transforming Energy Access platform (TEA).
The Shell Foundation and TEA are also contributing an additional £1.4 million ($1.8 million) to support Kofa’s e-bike asset funding, research into the impact of Kofa’s multi-use battery technology and cover operational expenses.
This initiative, spearheaded by Kofa and PASH, aims to provide reliable, affordable and clean energy for electric two-wheelers. It also seeks to provide power to small businesses and homes that currently rely on small gasoline generators, helping to replace these generators and significantly reduce reliance on fossil fuels.
Kofa will oversee battery network management and SPV operations, which includes the infrastructure required for battery switching, ensuring customers have access to fully charged batteries.
PASH will focus on the operational maintenance, development and management of battery exchange stations. The agency also plans to transition these stations entirely to solar power, further enhancing their environmental impact.
Jonathan Berman, CEO of the Shell Foundation, emphasized that providing transporters and small businesses with access to clean energy not only boosts incomes but also helps reduce emissions. He emphasized that this partnership is key to scaling electrification and clean energy solutions across Africa, with the potential to reach millions of customers worldwide.
Reports said the startup was set to expand to Kenya and Togo by June 2024, aiming to provide a cost-effective and sustainable energy solution for West Africa, while continuing to develop its motorcycle electronics in Ghana.
Ghana, which has about 17,000 registered electric vehicles, including two-wheelers and three-wheelers, now has one of the largest fleets of four-wheeled electric vehicles in Africa.
The African EV market is projected to reach $204.8 million in revenue by 2024. By 2029, the market is projected to reach $313.3 million, with a compound annual growth rate (CAGR) of 8.87% from 2024 until 2029.
Zenoa startup founded by Tesla alumnus Michael Spencer, recently entered the fast-growing sector. The company has raised $9.5 million to accelerate its plans to introduce swappable battery technology in East Africa, with the launch of its first electric motorcycles expected in early 2025.
Other competitors include Rwanda-based Ampersand, which recently raised an additional $2 million in equity capital in preparation for a Series B round to further expand the rollout of EV energy technology. BasiGo also secured $225,000 to improve its charging infrastructure.