FLYWHEEL was born out of a collaborative effort of many ecosystem players. Some of the major problems it was created to solve include the scarcity of early-stage investment opportunities, lack of inclusive opportunities for other Tunisian regions and women, the lack of support structures that intervene at all different levels, and a fund-gap to reach the scaleup stage & series A/B/C, among others.

FLYWHEEL relies on the grant and reimbursable subsidy. In our complimentary conversation with Ms. Salma Baghdadi, she stated that FLYWHEEL aims to provide financial support to startups and startup support organizations. The program has designed the financial instruments categorized as Proof of Concept (PoC) that grant USD$10,000 (approx. UGX36.9 million, TND31,000) to startups. The seed stage grants up to USD$60,000 (approx. UGX221.6 million, TND186,240) 60% of this is a subsidy, and 40% is a repayable subsidy.

On the other hand, DEAL is one of the other grants provided to Startup Support Organisations to launch new startup support programs that demonstrate added value in terms of expertise, positioning, or access to opportunities with gender and regional lenses.

On the contrary, FLYWHEEL has already funded over 103 startups at the prototype level, especially in AgriTech, DeepTech, and HealthTech, with 25 startups supported to raise their Series Rounds such as; Wattnow which raised USD$1.3 (approx. UGX4.8 billion, TND4.03 million), GoMyCode which raised USD$8M (approx. UGX29.5 billion, TND24.8 million) and GalacTech that exited with USD$15M (approx. UGX55.4 billion, TND46.5 million). 19 new support programs have been launched, 64 Startup Support Organisations have partnered with Flywheel and 52 tickets have been issued to Startup Support organizations valued at USD$130,000 (approx. UGX480.2 million, TND403,520).

SEE ALSO: UGANDA STARTUP POLICY DELEGATION BENCHMARKS WITH TUNISIA

The unique support system Tunisia has today originated from the Startup Act to 1,043 labeled startups and 2,340 committed founders that have created over 4,200 jobs, with welcoming innovation hubs. More to this, they have 9 active Business Angel Networks, over 500 investment operators, and 53 Startup Support Organisations that collaborate with ecosystem programs like FLYWHEEL (a financial support program), Halo (a business Angel activation program), and Invest’i (an investor matching program).

Tunisia has a lot more programs that support startups. We learned they have investment vehicles such as; ANAVA-Funds of Funds, Halo Program, the business Angels activation program, and Innovatech.

The ANAVA program is a fund dedicated to boosting Tunisia’s Venture capital ecosystem. This is part of the national strategy targeting to raise £100 million (approx. UGX477 billion, TND400.9 million) to drive a robust venture capital (VC) industry by launching 12+ VC firms dedicated to startups. Some of the programs under ANAVA include; The Funds of Funds that shall cover all stages of a startup up to maturity, The GP incubator — VC LAB, and the Guarantee program.

Already the ANAVA fund of funds portfolio today is composed of 216 Capital worth £6 million (approx. UGX28.6 billion, TND24 million), Silicon Badla worth £5.2 million (approx. UGX24.8 billion, TND20.8 million), Flat6Labs and Medin VC worth £5 million (approx. UGX23.8 billion, TND20 million), Janngo worth £4 million (approx. UGX19.08 billion, TND16.03 million) and GoBig worth £4.5 million (approx. UGX21.4 billion, TND18 million).

The Halo program, a business Angels Activation Program that is supported by SPARK and the European Union, supports business angles in four (4) verticals;

1. Initiation: Where they do an angel investment training program in collaboration with Efino.
2. Connection: This vertical relates to connecting Business Angels with Key players in the ecosystem.
3. Assistance: This relates to the provision of technical and legal support and a toolbox.
4. Co-financing: This vertical is concerned with awarding grants to startups that have raised funds from business angels.

The Halo program aspires to train over 30 aspiring business angels, support 10 investment operators, multiply angel investment in startups by three (3), and create a database of business angels.

The InnovaTech program is a fund dedicated to SMEs. This is a specialized investment fund that embraces a collective vehicle under the supervision of the Financial Markets Authority. The target size of this fund is $40M. It was learned that Smart Capital is the general partner, sponsored by Caisse des Depots et Consignations (CDC) which acts like the Uganda Development Cooperation (UDC) of Uganda. This fund runs for 10 years and targets 50 SMEs who explicitly have a technology approach to their operations.

Innovatech is embracing the power of entrepreneurship, technology, and digital transformation into Tunisian SMEs to transform its economy. It was mentioned that “InnovaTech is backed by the World Bank to support Innovative SMEs and also received a $75 million loan to fuel this vision and objectives.

Beyond startups, InnovaTech recognizes the transformative power of digitalization and innovation for all sectors. It emphasizes the importance of adaptation for businesses to remain competitive and sustainable in this dynamic landscape.

Also read:

• • Innovate Africa launches with $2.5M angel fund to back 20 startups
  • Martin Tumusiime’s ‘Uber for Waste’ app receives $19K grant from RAE
  • MTN invests UGX4.5bn in the second phase of the MTN ACE Program
  • AfriLabs, KAF sign MoU to foster cross-continental startup growth

Our brief chat with Mr. Talak Tilik, Interim Head of Smart Capital and Head of InnovaTech

How much does the startup ecosystem contribute towards the state annual?

The startup space currently contributes about 2% of Tunisian GDP.

The element of employment leave, what phenomenal advantage has this done for the Tunisian Startup ecosystem?

More than 100 out of 3,000 took leave to start a startup. If by completion of two years, you cannot stand the test of time, you would be free to go back and receive the benefits of your previous employment.

What do you mean by Good Bankruptcy, Good Failure?

The system guarantee took into account the situation in a country where we had the bankruptcy system that was created in 1993. And the procedure was very complex and would almost spoil even the personal brand of the entrepreneur. By good bankruptcy was to accept soon and move fast to another. Fortunately, they did not do that.

Why do you call it child funds? What are some of the sources you look out for funds to grant funds?

We call them child funds because they invest in other funds just so as not to create confusion, that is why they are called child funds. The government injects the same amount of funds as KFW. They have a certain ratio that they can fund so that the startups can also look for funds

What is the structure of Smart Capital for a country like Uganda that does not have any systems?

It is a fund management capital: For investments and development of the startup ecosystem as guided by the Startup Act.

I was in the DOT and two people I spoke with said they were in Europe and had to come back. Would you say the Startup Act was the reason for many of the talent returning to Tunisia?

Tradition culture in Tunisia of going to study in France, Harbototy tradition, and coming back to work in Tunisia. They basically can still headquarters in Tunisia. Tunisia has access to affordable labor and that makes us attractive to companies and increases opportunities for the human capital of Tunisians to return to Uganda.

What would you say is the biggest success factor of the startup policy?

1. Equilibrium between public investment and private investment, is me to invest. The government allows private individuals to be the ones to give the private individuals, whereas the downside, is not clear for me.
2. The majority of startups are developing software —and on the other hand, we need SMEs that would install this software.
3. For Tunisia, we also started from scratch.
4. Few ago with almost nothing working with other systems that had de-stabilised for decades.
5. There was no way to calculate the reliable numbers without a Startup Act, and now we can track them.

Editor’s Note: The article is written by Keneth Twesigye; Policy Lead at Startup Uganda, and CEO of TechBuzz Hub

The post Investment Vehicles, Programs the Tunisia Startup Act Has Successfully Created appeared first on PC Tech Magazine.

A visit to Smart Capital was another enriching experience of the Tunisia startup ecosystem where you get to hear about everything relating to the Startup Act and its performance. We received a warm reception and a comprehensive presentation from their team.

Prior to the Startup Act, it is important to acknowledge that the team leading Smart Capital had a vision to create, develop, and grow startups in Tunisia. During that time, they accumulated a wealth of experience in creating and building funds. We have mentioned several cases where they started by creating depreciation funds in 2006. Despite the limited fund operators, they started working together using the bottom-up approach to make Tunisia a startup-friendly country.

It was denoted that before the Startup Act, the major challenge for investors was to get a good number of startups to invest in; thus, there was a need to recognize and identify more startups. Other interests that investors had include;

1. Labeling of startups.
2. Public and private investments for development to strike a balance.
3. Successful investor networks continue with their success in the ecosystem.
4. Open to our natural environment of the Mediterranean environment.
5. There was a synergy that had to be created between different elements. These components include; legal, financial, guarantees/warrantees, and new investors/operators to deal with new investments.

During this time, the challenge was to identify who startups were. This led to a lot of failure with the investors and many other funds —which led to great learnings especially since the actors stayed in Tunisia.

In 2019, the Startup Act was enacted following its voting in 2018.

The Act has three Pillars,

1. The Act: An innovative legal framework to promote startups that launch in Tunisia or settle there. The Startup Act is based on a label of merit and a series of benefits and incentives for entrepreneurs, startups, and investors.
2. Startup Invest: A financing framework to create an ecosystem of VC funds with high added value for startups and emphasizes e-instruments; a VC Fund of Funds, an Incubator of Management Companies, and a guarantee program.
3. Startup Ecosystem: Premised on three objectives; to serve the actors of the ecosystem, provide financial support to startups and startup support organizations while building bridges between ecosystems through improving connectivity and promoting Tunisian startups and the local ecosystem

The Act offers several advantages or incentives to the three different groups;

1. For Entrepreneurs: They receive grants, patents, one year leave to create the startup, SIVP, employment programs, and the good failure.
2. For startups: They receive a startup portal, corporate income tax, employer & employee charges, a technology card, a special foreign currency account, homologation, and an authorized economic operator.
3. For Investors: They receive a tax rebate, contributions in kind, exemption from capital gains tax, startup guarantee fund, and other financial instruments.

Besides the above, the interesting aspect of the Act was the opportunity for them to be able to measure and track the performance and success of their startup ecosystem. As seen below (the infographic), even when the Startup Act targeted to reach 1,000 startups labeled, five years later, the Act has already surpassed the 1,000 mark with 1,043 startups labeled, 2,200+ applications processed, 63 sessions hosted, expanded to 40+ markets, 70+ foreign startups attracted to set up in Tunisia and a 120% annual growth rate in reviews by startups.

As a result of the Act, Tunisia’s wave of fundraising has been growing year on year. In 2020, USD$11 million (approx. UGX40.5 billion, TND34 million) was raised through nextProtein —which grew to USD$20 million (approx. UGX73.8 billion, TND61.8 million) in 2021 majorly through Expensya. In 2022 there was an exponential growth of USD$100 million (approx. UGX369 billion, TND309.2 million) mainly through InstaDeep and USD$15 million (approx. UGX55.3 billion, TND46.3 million) through GB Arena. In 2023, while other countries saw a decline in funding because of the impact of the COVID-19 pandemic, Tunisia raised, USD$682 million (approx. UGX2.5 trillion, TND2.1 billion) through InstaDeep and another USD$100 million (approx. UGX369 billion, TND309.2 million) through Expensya.

SEE ALSO: AFRICAN TECH STARTUP INVESTMENT FELL BY 28% TO $2.4BN IN 2023 AS GLOBAL “FUNDING WINTER” BEGINS TO BITE

In the second part of this article, I will cover the different investment vehicles and programs that the Startup Act has been able to successfully create and lead to such an enabling startup ecosystem in Tunisia.

Editor’s Note: The article is written by Keneth Twesigye; Policy Lead at Startup Uganda, and CEO of TechBuzz Hub

The post Exploring the Impact of Tunisia’s Startup Act at Smart Capital appeared first on PC Tech Magazine.

In our previous article update, we discussed the insights that the ICT Ministry of Tunisian shared with the Ugandan delegation regarding the state of growth of their Startup Ecosystem. The delegation was made up of the Technical Working Group on the startup policy interventions with representatives from the Ministry of Trade, Industry & cooperatives, Ministry of ICT & National Guidance, Ministry of Finance, JICA Uganda, and Startup Uganda as the private sector and startup ecosystem represented by Keneth Twesigye, Policy Lead at Startup Uganda, and CEO of TechBuzz Hub.

In this article (part 2), I discuss the insights that were made by GIZ, the development partner that has tremendously supported the startup ecosystem of Tunisia. I will also share insights from The DOT, which is an accelerator that provides startups with support including incubation, coworking space, and other great programs.

The GIZ—Digital Transformation Centre works in collaboration with the ICT and Industrialisation Ministry to establish a center for startup and innovation support which today is called “The DOT”. The DOT was created after the visit of French President H.E Emmanuel Macron to Tunisia where he launched the digital transformation center which goes by the name The DOT.

Three Components that GIZ focuses on include;

1. Industry 4.0: Match-make startups that provide solutions for industries like the pharmaceutical sector.
2. Competences and Skills Centre: It was also to ensure coaching and mentorship of potential startups, starting up activities, and outsourcing HR and IT services through assisting with hiring.
3. Ecosystem in-take where they support startups on entrepreneurship through working with Smart Capital under the FLYWHEEL program.

One of the biggest projects is; The Digital Transformational Center program is a country-level project. However, there is a women’s angle as part of it that works with an American organization (Open Minds Projects) run by Tunisian women living in America creating a no-minds community open to everyone.

The Managing Director of The DOT, Ms. Zeineb Messaoud acknowledged that they work on activities like the Cowork-up project which targets support structures for startups targeting different regions.

“One of the phenomenal supports that the project provides to startups is small amounts as funding of £10,000 (approx. UGX48 million, TND40,200) through the FYWHEEL program managed by Smart Capital,” said Messaoud. The phenomenality is because, such grants help startups in many things such as; experience of utilization of external investment/money, proof of concept, assistance to purchase/access basic infrastructure/ equipment/ resources/ materials needed at the pre-seed level.”

From experience of building and running a startup, the former is one thing I would emphasize to institutions that want to build the capacity of entrepreneurs in a country. Whereas we know that the success rate will be low, say, 10% or more if the program is well managed, and Tunisia manages to get very good results is because they provide a strict criterion for selection, this is why I say, when well.

Therefore, every potential startup needs this kind of grant assistance except for a few who might have started with enough of their saving or with prior reliable and relatable experience of building a startup, thus having the ease to get the trust of financing from investors.

GIZ has a keen interest in supporting women’s entrepreneurship through the ELEVATE Program — which they just finished the call for the fourth edition. The program provides training in positioning its participants.

The DOT is an innovation hub established by three partners (EU, Founder of Tunisie) with GIZ as a co-founder to provide facilities for coworking, develop and implement capacity-building programs such as accelerator programs, host events relating to the ecosystem, support startups with coaching and mentorship among others. Relative to The DOT, 19 government cyber parks provide facilities to Tunisian startups for a limited number of years. There are also what they call Techno Poles.

The DOT started in 2021 and since then, it has been able to host more than 1,500 conferences, had more than 400 startup beneficiaries, and more than 40,000 participants.

Some of the programs run by the dot include;

1. The DOT camp: A full year in residence program that takes on startup entrepreneurs. This program has so far hosted 100 of them and provided technical support to them.
2. A two (2) week mentorship Program. This program challenges participants against their ideas and bridges connections for prospective collaborations and partnerships. The program has engaged 82 executives in about 300 sessions with entrepreneurs.
3. The diaspora program: This is a touch point program for Tunisians in the diaspora wishing to invest back in Tunisian startups. It also serves as a recruitment center for talent returning to work in Tunisian startups or rather the diaspora persons wishing to launch startups themselves.
4. DOT community services: This program is an exchange for others or give back. After receiving support from the DOT, you are obligated to give back. We had a case of a startup called “Sinoya” that had to build a platform for The DOT that tracks the community of staff, startups and their teams, startup accelerators, associations, student clubs, etc., and fab-skills that created the digital signature.
5. Bridge-up for Startup Support Organisation (SSO). This is a program that supports the needs of SSO like huge conferences. They said this with an example where they hosted 20 countries for a two-day exchange workshop with countries like Palestine, Jordan, Senegal, etc.
6. DOT camp-plus: This is a pre-seed and seed program for startups—providing small grants to startups to build their prototypes, test their value proposition, or establish product market fit.
7. Soft landing program: This is one of the other great programs that The DOT has, this program assists startups with moving into new markets for a smooth transition.

While concluding the discussion, the delegation asked some critical questions to GIZ and The DOT with major two that I can highlight below;

(1) When asked about the success rate of The DOT, the Director of GIZ denoted that it is not easy to measure but they have so far hosted 75 startup events, startups doubled their employees, and been able to raise about £25 million (approx. UGX120.04 billion, TND100.5 million) and already have another batch of 24 startups.

(2) When asked about the shortfalls of the current startup act of Tunisia, it was interesting to learn that internationalization, fundraising from external investors, and Tunisian startups to establish their businesses abroad yet we have a very small market in Tunisia.

Editor’s Note: The article is written by Keneth Twesigye; Policy Lead at Startup Uganda, and CEO of TechBuzz Hub

The post Uganda Startup Policy Delegation Benchmarks with Tunisia appeared first on PC Tech Magazine.

Battery swapping is a revolutionary concept in the world of electric vehicles. It allows riders to exchange their depleted batteries for fully charged ones at designated stations, much like refueling a traditional vehicle. This technology has the potential to transform the electric motorcycle industry by making it more convenient, efficient, and cost-effective.

Like we have mentioned over the past few weeks in this series, the battery is the key(est) to the entire ecosystem of electric mobility, and its management is crucial for the success of electric motorcycles.

In this three-part article, we spoke to three electric motorcycle company top executives —from GOGO Electric, Zembo Motorcycles, and Spiro Uganda — who are at the forefront of innovation, visited a number of swap stations, and interacted with riders on the value of the battery, how it works, how swapping is done, the economics involved, and the bike customer sentiments.

Each electric motorcycle company has mastered the business model centered around selling electric motorcycles on a pay-as-you-go basis and providing battery-as-a-service (BaaS) through a network of swap stations.

At a brick-and-mortar swap station, the process involves the rider arriving at the station, where an agent captures the vehicle number to identify the rider. The agent then scans the battery to determine its state of charge (SoC) and assigns a new battery.

The rider is prompted to confirm the payment based on the SoC difference between the old and new batteries. The process takes about two minutes, making it as convenient as refueling a traditional vehicle.

The cost of battery swapping in Uganda

The economics of battery swapping are crucial for the success of electric motorcycles. By using a battery-swapping system, riders can save significantly on maintenance and fuel costs compared to traditional internal combustion engine (ICE) motorcycles.

At Zembo, every battery swap costs the rider approximately UGX6,000, which is comparable to the cost of refueling a traditional motorcycle. This cost is based on the energy consumed during the swap, ensuring that riders only pay for the amount of energy they use.

The company’s strategy is to build and own a pan-national network of swapping stations, aiming to expand its fleet to over 2,000 motorcycles and 60 swap stations by 2025.

Spiro, which operates 22 brick-and-mortar battery swap stations and numerous automated smart swap stations across Kampala, estimates that riders can save around 28-30% more than they would on fuel costs alone, resulting in a total savings of 40% or more.

In terms of cost per unit of SoC, Spiro charges UGX84 per percentage battery unit. Therefore, a full battery (100% SoC) costs UGX8,400. This pricing structure ensures that riders only pay for the energy they consume, making the system cost-effective and environmentally friendly.

Spiro’s automated smart swap stations use NFC cards and interactive touch screens to facilitate the swap process. Riders interact with the station’s platform, which calculates the SoC difference and initiates a payment prompt. Upon successful payment, a fully charged battery is automatically dispensed, ready for the rider to continue their journey.

Benefits of battery swapping

Battery swapping offers several benefits that make it an attractive option for electric motorcycle riders.

Firstly, it eliminates the need for lengthy charging times, which can be inconvenient for riders. By swapping batteries, riders can quickly and easily recharge their vehicles, ensuring they are always ready to go. This convenience is particularly important for boda boda drivers who rely on their motorcycles for their livelihoods.

Secondly, battery swapping reduces the need for large, heavy batteries that can compromise the performance and handling of the motorcycle. By using a standardized battery system, manufacturers can design lighter, more affordable electric motorcycles that do not sacrifice performance for range. This approach also allows for the development of new batteries with improved capacity or reduced weight, further enhancing the overall efficiency of the vehicles.

Thirdly, battery swapping supports a circular economy by facilitating the reuse and repurposing of batteries. This approach aligns with the principles of sustainability, reducing waste, and promoting the efficient use of resources.

Also read:

• • • Uganda’s electric vehicle revolution: Driving towards a sustainable future
    • SPIRO, Gov’t sign MoU to deploy electric motorbikes to reduce harmful emissions
    • SPIRO secures $50M from Afreximbank to boost sustainable transportation in Africa
    • Government pledges UGX32.5bn for completion of Kiira Motors’ industrial plant
    • Karaa Africa CEO debunks some common misconceptions about electric vehicles

The impact on electric motorcycle ownership costs

James Obarowski, the CEO at Zembo Motorcycles states that one of the reasons for battery swapping is to make sure that the battery is charged properly and that “we’re able to do any maintenance if we need to on the batteries.”

He adds, “We monitor them in real-time and are able to see the health of the battery. We do analysis and if we see the battery as a health issue there’s an automatic alert that’s triggered to our battery lab, and then we will set that battery aside and bring it back to our battery lab and make some repairs or adjustments so that it can go back into the field and achieve an acceptable performance and efficiency for the end user.”

From all the stakeholders we spoke to, it became clearer through each conversation that battery swapping significantly impacts the overall cost of ownership for electric motorcycles by offering several advantages over traditional charging methods.

Battery swapping allows riders to quickly exchange depleted batteries for fully charged ones, reducing the downtime associated with lengthy charging times. This convenience is particularly beneficial for boda boda drivers who rely on their motorcycles for their livelihoods. Instead of waiting for their bikes to charge, they can simply swap out the battery and continue their journeys without interruption, maximizing their productivity and earning potential.

Additionally, battery swapping eliminates the need for riders to purchase and maintain their own batteries, further reducing the overall cost of ownership. This is because the battery swapping service providers are responsible for the upkeep and replacement of the batteries, allowing riders to focus on the operation of their vehicles without the added burden of battery maintenance.

Battery swapping stations charge riders based on the energy consumed, ensuring that they only pay for the amount of energy used. This pricing structure makes battery swapping cost-effective compared to traditional fuel-based motorcycles, where riders pay for the fuel regardless of the distance traveled. This can result in significant savings for riders, especially those who have high daily mileage requirements.

You also ought to note that battery swapping systems often include intelligent charging systems that help maintain the health and performance of the batteries. This extended battery life means that riders can use their motorcycles for longer periods without worrying about battery degradation, further reducing the overall cost of ownership.

While battery swapping stations require significant initial capital investment for hardware, software, and property rental, long-term savings and increased efficiency can offset these costs. As more riders adopt battery swapping, the accumulated cash flow for operators increases, making the service more profitable and potentially leading to lower costs for riders.

The market tends to prefer plug-in motorcycles over battery-swap motorcycles, but the share of battery-swap motorcycles gradually increases over time. As electricity prices rise, battery swap bikes become more popular, further driving the adoption of this technology. This shift in market preference can further enhance the cost-effectiveness of battery swapping for electric motorcycle owners.

Written in collaboration with Douglas Kikonyogo (X, @doug_kikonyogo)

The post Part 3/3: Battery Swapping and Costs Involved on an Electric Motorcycle appeared first on PC Tech Magazine.

The delegation comprises the Ministry of ICT & National Guidance, the Ministry of Finance, the Ministry of Trade, industry and cooperatives representatives, and myself representing startups, entrepreneurs, and the entire startup ecosystem at the private sector level, particularly as the representative of Startup Uganda.

This benchmarking activity is supported by the JICA project that shall run a Uganda capacity-building and ecosystem-strengthening project for the next 3 years targeting scaleup startups that also picked interest in supporting the startup policy process.

Firstly, let me make a personal disclaimer; “the Tunisian startup ecosystem must be the most developed in Africa” which validates why it was the first to have a startup act in Africa in 2019.

The 5-day activity is an intense activity to meet and engage with key stakeholders of the Tunisia startup ecosystem.

On day one, we were able to meet with Tunisia’s Ministry of ICT, GIZ, The Dot Accelerator, and Salma Baghdadi; an Ecosystem Champion. These meetings were so magnificent that, you could see the whole picture of a functional startup ecosystem.

The Tunisia Ministry of ICT started with a national strategy that existed before the Startup Act that focused on three things; (1) Support and supervision structures/institutions, (2) Programs and Projects, and (3) Incentive support mechanisms.

By the time they implemented the Startup Act, it picked up from the existing process. That act is so exciting and articulate of what the ecosystem wanted but more importantly independent of government. The act is geared towards promoting innovation, entrepreneurship, and the creation of startups by providing a supportive regulatory framework with objectives of creating 1,000 labels, 10,000 jobs, and sales of around USD$320 million (approx. UGX1.18 trillion, TND995 million)

The ICT Ministry took us through the details of the Startup Act and you clearly could tell why an ecosystem like Tunisia could not fail to grow. Here below is a highlight of the three parts of the Act:

• Legal frameworks and incentives: (1) the startup label provides a certification that grants startups various benefits, including tax exemptions and simplified administrative procedures, and (2) the financial incentives include exemptions from corporate taxes and employer contributions to social security for up to eight years.
• Funding and support: (1) the startup fund which provides financial support for startups through grants, loans, and equity investments, and (2) the Innovation and Development Grants which aim to support research and development activities.
• Administrative and regulatory support: (1) simplified administrative procedures that help reduce bureaucracy and streamline processes for setting up and operating a startup and (2) support structures that help establish incubators, accelerators, and co-working spaces to provide startups with resources and mentorship.

What you haven’t heard about Tunisia which keeps coming from the corridors is that their next step is the realization that the Startup Acts need to revolve. The country is in the process of creating the second version of the Tunisian Startup Act to include the things that they did not take into account 5 years ago. This is so interesting to learn and I think as the Ugandan process of policy and act proposals take place, we need to take it into account.

Part 2: Insights shared by GIZ, and The DOT to the Ugandan delegation regarding the state of growth of the Tunisia Startup Ecosystem

Editor’s Note: The article is written by Keneth Twesigye; Policy Lead at Startup Uganda, and CEO of TechBuzz Hub

The post Uganda Startup Policy Delegation Benchmarks with Tunisia appeared first on PC Tech Magazine.

So, the e-bike and the battery that powers it are priced separately, something that articulates how much of an asset the battery is.

In this three-part article, we spoke to three electric motorcycle company top executives — from GOGO Electric, Zembo Motorcycles, and Spiro Uganda — who are at the forefront of innovation, visited several swap stations, and interacted with riders on the value of the battery, how it works, how swapping is done, the economics involved, and the bike customer sentiments.

If you haven’t read our first part, here it is — PART 1/3: What the manufacturers do…

Customer Perspectives

In part 2;

We look into what the e-bike customers say about the products on the market. These are the ones that can tell you the full story of the value that the battery adds to the functionality of the machine.

Fahad Kakaire, a Spiro Veo customer whose daily trade is in the boda-boda industry, says he has saved so much money since he got his e-bike. We talked to him while on a ride with him on this bike, and he fully acknowledges that there is nothing more advantageous than running a vehicle that offers a smoother ride with instant torque and power, reduced maintenance requirements, and zero direct emissions.

“People always look at fuel on the normal internal combustion engine bikes but forget about the maintenance,” says Kakaire. “The oil you need to change regularly, the valve adjustments you need to monitor, and other engine concerns always result in more expenditure at the end of every week.”

With an e-bike, all you need to ensure is that the battery is sustainable, and you are good to go as its motors run easily with minimal checks. “I don’t even wait for it to get used up,” he brags to our writer, adding, “Once I sense that I will need more battery for the next run of errands, I just visit a swap station and refill. After all, it costs much less which I can recoup in four-fold with my work.”

This is because Spiro gives its customers the flexibility to swap batteries at their convenience without worrying about being overcharged. This is especially useful for those with unpredictable travel patterns or varying daily mileage.

Kakaire states that the Veo’s battery is uniquely built to offer extended use beyond its capacity. A user can run an extra 5-6 kilometres if the charge runs out, and even after that, it is still capable of doing basic errands such as smartphone charging and bike light support.

Jimmy Lugaaju, another Spiro Veo customer, adds his voice to the benefits, stating that given the uniqueness of the battery in an e-bike, it becomes hard for theft to thrive in this era.

“If my bike gets stolen, all I need to do is to report to the manufacturer about it, and the battery will be traced in an instant,” Lugaaju states.

The basic logic behind this is that each battery in an electric motorcycle is actively monitored and can only work with a trigger made at the swap station. If the battery is reported as stolen, it is easy to deactivate the bike from wherever it is and locate it instantly.

Challenges and Improvements

However, not everyone understands the battery packaging in e-bikes. While an average boda-boda rider needs to do at least 3 swaps a day to fulfill their errands, there is a section of riders that find this more than necessary.

Sam, a delivery personnel within Kampala who recently purchased an e-bike to boost his business, feels that the numerous swaps wipe out the advantages that the vehicle could have over its fuel-powered counterpart.

“I love everything about the electric bike apart from the many swaps I do every day. I feel like in my line of business, I should be able to swap once and do more — which will make me forget about fuel and its charges,” Sam laments.

What Sam forgets is that a full battery charge can only last up to 80 kilometres, which he admits he always triples and sometimes exceeds daily. Lugaaju, who also admits to running long journeys throughout his day, suggests that the battery capacity should be upgraded to accommodate up to at least 150 kilometres on a single charge.

In the first part of this conversation, James Obarowski, the CEO at Zembo, stated that it is ideal to strike a balance when making these bike batteries to ensure sufficient performance without excessive battery consumption.

“We could make the bike faster and more powerful, but then you’ll get a shorter range which means you’ll spend more money for every kilometre you drive,” said Obarowski. “We have to think about the power of the bike to make sure it can do the job but not too much consumption of the battery.”

Financing Simplified

Each of the drivers we spoke to has obtained their e-bike on loan, which has made the overall financing process simpler. With vehicle financing institutions showing increasing interest in the electric motorcycle industry, ownership of these eco-friendly vehicles is becoming more accessible and closer to the doorstep of aspiring riders and entrepreneurs.

Also read:

• • • Uganda’s electric vehicle revolution: Driving towards a sustainable future
    • SPIRO, Gov’t sign MoU to deploy electric motorbikes to reduce harmful emissions
    • SPIRO secures $50M from Afreximbank to boost sustainable transportation in Africa
    • Government pledges UGX32.5bn for completion of Kiira Motors’ industrial plant
    • Karaa Africa CEO debunks some common misconceptions about electric vehicles

One key player making a significant difference in this space is MOGO Uganda, an asset financing company that provides affordable financing options for boda boda riders, smartphone users, and car owners. By offering flexible financing solutions tailored to the needs of various customer segments, MOGO is enabling more people to access and own electric motorcycles, which is crucial for the growth and adoption of this sustainable mode of transportation.

Nicholas Akatwijuka, a Zembo motorcycle rider, attests to the life-changing impact of MOGO’s loan services. He says that the loan made his dream of starting a sustainable business a reality, as he came to Kampala with limited capital but was able to acquire an electric motorcycle through MOGO’s affordable financing options.

“The loan with MOGO Uganda made my dream come true,” Akatwijuka shares with our writer. “I came to Kampala with little hope of starting up a sustainable business with the little capital I had on me. But thanks to MOGO’s financing, I was able to obtain a Zembo electric motorcycle, which has transformed my life and business prospects.”

With the financial burden eased, Akatwijuka is now able to set aside more savings every day and envision a brighter future for himself and his family. He hopes to expand his business further and explore new opportunities made possible by the reliable and cost-effective transportation provided by his electric motorcycle.

Part 3: Battery swapping and costs involved on an electric motorcycle

Written in collaboration with Douglas Kikonyogo (X, @doug_kikonyogo)

The post Part 2/3: What Customers Say About Electric Motorcycle Batteries appeared first on PC Tech Magazine.

In Uganda, the electric vehicle (EV) revolution is on the runway and the innovation around it is very impressive. From home-grown products to new amazing imports on the market, the future of the industry is sounding bright. With numerous players exhibiting their prowess in the e-mobility space over the years, the one party that always stands to win is the customer.

In this three-part article, we spoke to three electric motorcycle company top executives — from GOGO Electric, Zembo Motorcycles, and Spiro Uganda — who are at the forefront of innovation, visited several swap stations, and interacted with riders on the value of the battery, how it works, how swapping is done, the economics involved, and the bike customer sentiments.

Part 1: We begin with how much value the manufacturers attach to the battery and how they approach the packaging of the product when putting it on the market.

Designing for efficiency and durability

Jakob Hornbach, the CEO and CFO at GOGO Electric, emphasizes the importance of educating riders on proper bike operation.

“The most important thing is to explain to riders how the electric bike is different from an ICE bike in terms of operations. All riders go through an onboarding process and we teach them how to operate them correctly,” explains Hornbach. “Operating the electric bikes wrongly leads to a high energy consumption and therefore less savings.”

GOGO Electric’s innovative battery pack design iteratively developed to suit the East African market, aims to maximize efficiency and savings for riders. Hornbach adds that their innovation lies more in the battery pack design that has been iteratively developed by them to suit the market needs.

“Operating the electric bike correctly leads to about 40% savings on energy and maintenance,” he says. “We use Lithium-Ion battery technology that has been around since 1991. All pretty standard.”

When it comes to simplicity, Zembo Motorcycles do not differ much from GOGO’s approach. James Obarowski, the CEO at Zembo, highlights this when explaining the company’s focus on battery chemistry and bike setup.

“Zembo has chosen LFP batteries as a type of chemistry that allows us to get overall a lower cost for every unit of power. So that means a lower cost per kilometer driven for the end user,” he states. “Zembo also carefully balances the bike’s power to ensure sufficient performance without excessive battery consumption.”

He continues “Of course, we could make the bike faster and more powerful, but then you’ll get a shorter range which means you’ll spend more money for every kilometer you drive. So we have to balance this out, make sure you have enough power to do the job but not more because just like a fuel bike with a big engine will consume a lot of fuel.” “So it’s the same thing for electric bikes. We have to think about the power of the bike to make sure it can do the job but not too much consumption of the battery,” Obarowski adds.

Gaurav Anand, the Country Head at Spiro Uganda, stresses the importance of rider education and continuous engagement.

“Proper riding habits can greatly extend the life and efficiency of the battery. For instance, riders are taught to avoid rapid acceleration and hard braking, which can drain the battery faster. This education is provided during onboarding and through continuous engagement to ensure riders get the maximum range and longevity from their batteries,” he notes.

Spiro’s onboarding process and ongoing support help riders adopt optimal riding styles, maximizing their battery’s range and longevity.

SEE ALSO: KARAA AFRICA CEO, MUTABAZI DEBUNKS SOME COMMON MISCONCEPTIONS ABOUT ELECTRIC VEHICLES

Monitoring and maintenance

All three companies prioritize battery monitoring and maintenance to ensure optimal performance and safety.

Zembo’s real-time monitoring system allows them to track battery health and trigger alerts for any issues.

“One of the reasons we do battery swapping is to make sure that the battery is charged properly and that we’re able to do any maintenance if we need to on the batteries. So we monitor them in real-time so every bike when it’s out on a motorcycle or whether it’s in a swapping station we’re able to see the health of the battery,” Obarowski explains.

The Zembo team does real-time analysis as well and if they see any health issue, there’s an automatic alert that’s triggered to the battery lab, for which the battery is set aside and brought back for repair or adjustments.

Spiro takes a meticulous approach to battery inspection, assessing the state of charge, internal resistance, and overall health of the battery cells.

“Every time a battery is brought back to the swap station, it undergoes a thorough inspection period to assess its ability to hold charge as expected, ensuring it meets our performance standards. This includes checking the state of charge, internal resistance, and overall health of the battery cells,” Anand states.

He adds that any signs of damage or wear and tear are addressed promptly. This meticulous approach guarantees that each battery remains safe and reliable for our customers.

Designing for the African market

One key advantage for all the models on the market, manufactured by the three companies, is the ability to fit in the Ugandan and African markets without any block.

Electric motorcycles have their batteries designed to withstand the unique challenges of the Ugandan market, such as frequent knocks, heavy rain, and high temperatures.

“We know a boda driver in Uganda, he gets knocked like once a week. We often have heavy rain and maybe it goes underwater. The bike, you have very, very high heat. We have a hot day and it gets very, very hot. All these three conditions can be difficult on a battery. So we’re always thinking about how to manage this,” Obarowski acknowledges.

Also read:

• • Uganda’s electric vehicle revolution: Driving towards a sustainable future
  • SPIRO, Gov’t sign MoU to deploy electric motorbikes to reduce harmful emissions
  • SPIRO secures $50M from Afreximbank to boost sustainable transportation in Africa
  • Government pledges UGX32.5bn for completion of Kiira Motors’ industrial plant

Zembo’s V2 battery is designed to perform well in these conditions, with a strong, watertight casing. “It was designed to perform well and not get too hot, even if it’s really hot outside. If you knock it, it will not have any bad effect,” he adds.

Spiro leverages advanced telematics and IoT technology to monitor and manage their fleet of electric motorcycles.

“The IT sensors embedded in our batteries and motorcycles provide detailed insights into temperature, voltage, and overall health of the battery. This continuous monitoring ensures that any potential issues are identified and addressed before they become critical,” Anand explains.

By analyzing this data, Spiro can offer personalized advice to riders and predict maintenance needs, ensuring optimal battery performance.

Hornbach, the CEO and CFO at GOGO Electric hints that there is a plan for them to reduce battery cost, increase battery life & safety, increase energy density, and increase re-usability/recyclability through several initiatives.

PART 2: What the customers say…

Written in collaboration with Douglas Kikonyogo (X, @doug_kikonyogo)

The post Part 1/3: Manufacturers’ Valuation of Electric Motorcycle Batteries appeared first on PC Tech Magazine.