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A Nigerian e-mobility platform and electric vehicle assembler, with support from the UK-funded Manufacturing Africa programme, has raised $31 million to expand the assembly of electric two- and three-wheelers.

Metro Africa Xpress Inc. (MAX) was founded in 2015 to connect drivers in the two, three and four-wheel categories to credit customers and Original Equipment Manufacturers (OEM) services.

The company started out as a motorcycle-based logistics service before adding passenger transportation services in 2017.

MAX is gearing up for a third capital raise, to fund its expansion to become a regional e-mobility player. MAX Nigeria has empowered over 21,000 drivers operating in eight cities within Nigeria and has contributed to cutting 52 metric tons of CO2 emissions from the environment.

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Manufacturing Africa’s team of McKinsey consultants conducted a market assessment of the electric vehicle value chain for MAX, contributing to their electric vehicle (EV) scale-up strategy.

British funds continue to support game-changing entrepreneurs and companies in Africa, said the UK Foreign, Commonwealth and Development Office.

It said that British International Investment manages a $4.7 billion investment portfolio in Africa, including 86 companies and 43 funds in Nigeria alone.

Other funding sources include:

“Importantly, the UK also provides support for companies to access investment, whether from the UK or elsewhere,” the UK Foreign, Commonwealth and Development Office said.

“The Manufacturing Africa programme is supporting 22 manufacturers to land investments in Nigeria, with a pipeline of $664m+ foreign direct investment (FDI).

“The programme supports over 120 companies across five countries in Africa, which are mitigating 239,000 tonnes of carbon dioxide, while creating 14,000 new jobs.”

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Chief Executive Officer and Co-Founder of MAX Nigeria, Adetayo Bamiduro said: “Our mission at MAX is to continue scaling the impact of our vehicle subscription platform across Africa.

“(And) to deliver on our commitment to provide sustainable income to millions of mobility entrepreneurs by enabling them to access income-generating, energy-efficient, and electric vehicles that meet the essential needs of Africans.”

Bamiduro, as quoted by the News Agency of Nigeria, said the economic benefits of shifting from petrol to electric were overwhelming. Bamiduro noted that users would save as much as 40% in operating costs a month by shifting from gas-powered two-wheelers to electric-powered ones.

“There is a compelling argument beyond the environmental impact, but also, the economic impact. So, there’s absolutely no reason not to do the transition to EV right now.

“We have been doing this for the past five years, supported and powered extensively by close partners including the UK government and UK government-funded institutions.”

He said the company was working with energy companies and the government at the state and federal levels to scale up access to charging stations and infrastructure.

“A switch to electric will lead to a reduction in energy cost by at least 50%, and in some cases, up to 70%.”

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