BD Insider: Ampersand revs up EV production in Kenya

Jesutofunmi Adedoyin -

In this letter, we explore:

  • Ampersand opens larger EV production facility in Kenya
  • SpaceX’s Starlink aims for Gigabit speeds
  • Ethiopia’s central bank introduces new FX policy

We also curated updates on startup funding in Africa, weekend reads, and several opportunities.

The big three! 

Ampersand opens larger EV production facility in Kenya

Ampersand is revving up its electric motorcycle production in a big way with the opening of a massive new factory in Kenya. Spanning 21,000 square metres, this facility is over three times the size of their previous one and will employ more than 100 staff. 

The new factory is set to assemble up to 60 electric motorcycles per day, or 1,440 per month, significantly boosting Ampersand’s capacity to meet the rising demand for e-motos. This expansion also supports their battery swap network, further solidifying their footprint in Kenya's electric vehicle market.

Ampersand already has a fleet of over 1,100 electric motorcycles on the roads, covering more than 4.5 million kilometres weekly between Kigali and Nairobi. With ambitious plans to deploy 5 million electric motorcycles by 2033, the company is playing a key role in driving transportation electrification across East Africa.

Zoom in: This move marks a major milestone for Ampersand and the EV industry in Kenya, highlighting their commitment to sustainable transportation and scaling to meet market demand. They're not alone, though—companies like BasiGo, M-KOPA, and Bolt are also making strides in the Kenyan electric vehicle space. This growing competition is pushing innovation and helping lower costs for consumers.

The Kenyan government is also backing the industry, with the release of its draft National E-mobility Policy aimed at creating a supportive environment for the production and adoption of electric vehicles.

SpaceX has long promised to deliver 1 Gbps download speeds via Starlink, and it now seems closer to achieving this goal. The company has applied to the US Federal Communications Commission (FCC) to modify its Starlink system, with the aim of boosting internet speeds from 100 Mbps to 1 Gbps. This upgrade is part of SpaceX's broader mission to provide high-speed broadband to underserved areas worldwide.

To make this a reality, SpaceX plans to lower the altitude of its Gen2 satellites and use its Starship rocket for launches. This would significantly increase bandwidth and reduce latency, bringing gigabit speeds closer to Starlink users.

Context: Starlink has already expanded into several African countries, including Kenya, Nigeria, and Zimbabwe, despite initial regulatory hurdles. Mali is the latest country to temporarily lift its ban on Starlink for six months. Starlink’s arrival is creating competition for existing internet service providers (ISPs) in these regions. 

In Kenya, for example, Starlink has quickly become the tenth-largest ISP, gaining over 8,000 users and capturing 0.5% of the market just a year after its launch as of June 30, 2024. Starlink has also introduced a more affordable plan in the country.

In response, Kenyan ISP Safaricom has boosted its fibre internet speeds in a competitive move against Starlink. Safaricom also plans to launch its own satellite internet services to rival SpaceX's offering. 

In Zimbabwe, telecom company NetOne has rolled out 5G base stations to enhance internet speeds and meet the growing demand for reliable, high-speed connectivity following Starlink’s entry into the market.

To obtain this approval from the FCC, SpaceX will have to demonstrate that these changes won’t negatively affect other spectrum users and satellite operators.

Ethiopia’s central bank introduces new FX policy

Ethiopia's National Bank has implemented a new policy regarding foreign exchange (FX) spreads and fees. The primary aim of this policy is to enhance transparency in the country's FX market.

Under the new regulations, banks are now required to separately disclose their FX trading spreads in their daily posted rates. This means that customers can easily see the difference between the buying and selling rates for foreign currencies.

Previously, banks were allowed to include all FX-related fees and commissions within their trading spreads. The new policy mandates that these fees and commissions be disclosed separately and charged to customers.

The National Bank has emphasised that banks should adjust their buying and selling rates based on market conditions and through transparent negotiations with customers. However, these adjustments should generally not exceed 2% of the banks' posted rates.

Context: In July 2024, the National Bank introduced a major overhaul of its foreign exchange regulations, giving private authorised foreign exchange dealers a greater role in determining exchange rates alongside banks.

On October 2, 2024, the bank announced the approval of five companies that applied for licences and met the necessary requirements to operate as Independent Foreign Exchange Bureaus.

This new policy also allows independent foreign exchange bureaus to operate in Ethiopia. These bureaus will play a role in deepening the country's foreign exchange market and providing additional options for customers.

💰 State of Funding in Africa

Here’s a roundup of African startups that secured funding last week:

  • African crypto startup Yellowcard has raised $33 million in Series C funding. Blockchain Capital led the round, which also included Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital.
  • Nigerian fintech Klasha has secured an additional $2 million in funding. Expert Dojo, Alumni Ventures, Practical VC, Breega, My Asia VC, Resilience17, and Magic Fund all participated in this round.
  • Sistema.bio, a Nairobi-based biogas technology company, has raised $15 million in fresh funding. The funding round was led by ElectriFI, managed by EDFI Management Company, and saw participation from a coalition of existing investors including Chroma Impact Investment, KawiSafi Ventures, and AXA IM Alts, among others.
  • Kenya’s cleantech startup Octavia Carbon has secured a $3.9 million Seed funding round co-led by Lateral Frontiers and E4E Africa, with participation from Catalyst Fund, Launch Africa, Fondation Botnar, and Renew Capital.
  • Egypt-based micro-mobility startup Rabbit Mobility has raised $1.3 million in a funding round led by 500 Global and Untapped Global.

🍿 Weekend binge

💼 Opportunities

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