ENERGY TRANSITION
Ahoko is an African-founded vehicle sharing company based out of Abidjan, Ivory Coast.
Click to access the company web site
Over last 3 years, Ahoko has grown 30% per annum to over US$1M annual income, in midst of post-COVID inflation crisis in West Africa.
ESG angle: Ahoko allow vehicle owners to share spare usage time
-> enhances environmental awareness and induces behavioural change in society.
-> contribute to improving owner financials
-> contributes to reducing cost of vehicles, directly contributing to reducing inflation as logistics is the 2nd largest cost in goods and services after material purchase
Strategy Summary
Seeks to generate risk-adjusted returns by fulfilling financing gap in the African region by banks and directly repay by vehicle rental income
Focused on long term value investments into sustainable logistics practices in Africa
To capture market opportunities from both sustainability business model and emerging markets
Investment Rationale
By 2020, Africa will have an adult (aged 15+) population of around 800 million, according to UN estimates. By 2050, this number is projected to increase to almost 1.7 billion. However, the number of cars (Personal Vehicles) on African roads is, relative to the population size, tiny, at just 30.8 million in 2015, according to an OICA estimate, or around 44 cars per 1,000 adults. Unsurprisingly, Africa is also severely underrepresented on the global stage in terms of new car sales, which we forecast to be just over one million across the continent in 2019 – only 1.2% of the global total, despite Africa containing 13.8% of the world’s adult population. - United Nations -
It is highly possible that the traditional car ownership model could be superseded by shared mobility, particularly ride-hailing apps, before it has even taken root in a widespread manner.
A quicker rebound after COVID-19 in Africa compared to developed countries and other developing countries
Large venture capital funding potential
« It’s quite an extraordinary achievement: the African Tech ecosystem has continued to grow in 2022, despite a global economic crisis and a dramatic slowdown in the venture capital landscape. Funding for the African sector grew +8% to US$6.5B, through 764 rounds, with debt funding doubling in the year (+102% to US$1.5B in 71 rounds) to compensate for a slight decline in equity rounds (-6% to US$4.9B in 693 rounds). Clearly, the deep forces driving growth of the African Tech ecosystem have prevailed against the headwinds.« - Partech Africa 2022 report
