Denmark commits funds to boost Uganda's low-carbon transport

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Impact Fund Denmark has committed Danish pension capital to Africa's fast-growing electric mobility sector, anchoring a $215 million equity round to Uganda's Spiro.

The deal, co-led with global investment platform Equitane, signals growing appetite among international institutional investors for scalable clean-energy transport systems in emerging markets, particularly in Africa’s rapidly urbanising cities.

“We are investing in Spiro and bringing Danish pension capital into one of Africa’s most promising growth markets because we see potential for significant commercial growth in Spiro and electric mobility across Africa, as well as measurable climate impact,” said Lars Bo Bertram, chief executive of Impact Fund Denmark, in a statement released on Thursday, June 04. 

Impact Fund Denmark (formerly known as the Investment Fund for Developing Countries or IFU) is a state-owned fund under the Danish government.  It regularly co-invests in the Global South alongside Danish institutional investors (like major pension funds) and private capital.

The funding comes as Spiro moves beyond pilot deployments into large-scale commercial rollout across seven African markets.

The company said the new capital will accelerate expansion of its battery-swapping infrastructure, strengthen local assembly and manufacturing capacity, and support development of next-generation electric mobility technology.

Spiro founder and Equitane chairman Gagan Gupta said the company had already created significant economic value across its operations.

“Spiro has become a major driver of local industrialisation, value creation, and manufacturing across African markets with 6,000 sustainable direct and indirect jobs,” he said. 

“Supported by our global pool of investors, we are entering our next growth chapter to deliver clean, cost-effective energy and transport alternatives to millions of riders.”

Lower costs for riders, cleaner cities

The company says its electric motorcycles are already reducing operating costs for riders by up to 40 percent, translating into daily savings of about $2 ( about sh7,540) for users affected by volatile fuel prices.

A lifecycle assessment conducted in Kenya indicates that Spiro’s electric bikes deliver a 72 percent reduction in climate impact compared to petrol motorcycles, with emissions savings equivalent to about 19 tonnes of carbon dioxide over a vehicle’s lifetime.

The study further shows an 80 percent reduction in ozone depletion potential and a 20 percent cut in particulate matter emissions, pointing to significant public health benefits in urban areas.

Scaling a clean-energy transport network

According to Spiro, they have more than 100,000 electric motorcycles in operation, supported by 2,500 smart battery-swapping stations and over 30 million completed swaps.

High potential e-mobility market

Uganda is increasingly viewed as a high-potential e-mobility frontier market because of its large boda boda base and rising investor interest in clean transport.

With continued investment in infrastructure and financing, the sector is expected to expand beyond Kampala into regional towns. 

Despite rapid growth, the market still faces constraints, including the high upfront cost of electric bikes, limited battery-swapping infrastructure outside Kampala, and 

financing barriers for low-income riders, according to a recent report. 

The report also cited consumer trust and durability concerns, as well as need for stronger policy and regulatory support. 

As of May, there were an estimated 200,000–300,000 boda bodas in Kampala alone, with national figures running into several hundred thousand according to the National Bodaboda Union. 

This creates one of the largest two-wheel transport markets in East Africa and a strong foundation for electrification.