The fund targets investments in renewable energy, climate and digitalization in developing countries in sub-Saharan Africa, including Kenya, South Africa, Ghana and Nigeria.
GuarantCo and Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution to finance Spiro’s fleet of electric motorbikes in Benin and Togo
GuarantCo, part of the Private Infrastructure Development Group (PIDG), in partnership with Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution, with a first tranche of XOF 21 billion (c. USD 35 million), to support the financing of Spiro’s fleet of electric motorbikes as well as the associated batteries and swap stations in Benin and Togo. The funding comprises a 70 percent partial credit guarantee from GuarantCo and a borrowing base facility provided by Societe Generale. Through this funding, the financiers will take a significant stride towards supporting e-mobility in Africa.
GuarantCo, part of the Private Infrastructure Development Group (PIDG), in partnership with Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution, with a first tranche of XOF 21 billion (c. USD 35 million), to support the financing of Spiro’s fleet of electric motorbikes as well as the associated batteries and swap stations in Benin and Togo. The funding comprises a 70 percent partial credit guarantee from GuarantCo and a borrowing base facility provided by Societe Generale. Through this funding, the financiers will take a significant stride towards supporting e-mobility in Africa.
E-mobility in Benin and Togo, and Africa in general, is still in its nascency but will offer huge benefits once the electric motorbike model has scaled up. This transaction will directly contribute to addressing the challenge of providing affordable, clean vehicles in Benin and Togo, and is expected to transform the market through wider demonstration and replication effects. The Spiro project is specifically targeted at motorbike taxi drivers of which there are an estimated 400,000 in Benin and Togo.
Spiro is looking to deploy at least 15,700 clean electric motorbikes with 31,400 electric batteries and more than 1,000 swap stations in addition to their existing operational fleet of 5,706 vehicles and around 130 swap stations. Through the project, up to 100 jobs will be created for the installation of charging stations and technical support, while an additional 3,710 operations and maintenance jobs are expected. Spiro is aiming to have a minimum of 30 percent women in their workforce including engineers, managers and technicians whilst providing technical and leadership programmes to enhance their skills. It is estimated to deliver a 96kt C02 equivalent reduction of greenhouse gas emissions so urban communities in particular will benefit from reduced air pollution as internal combustion engines are replaced.
The transaction will make a direct contribution to Sustainability Development Goal (SDG) 11.6: Reduce the environmental impact on cities and SDG 13: Limit and adapt to climate change.
Layth Al-Falaki, CEO of GuarantCo, said:
“We are delighted to have signed this transaction with Spiro, and to have further cemented our strong relationship with Societe Generale. This landmark electric mobility project will contribute to improving the environment to the benefit of the people of Benin and Togo and will directly contribute to addressing the challenge of providing affordable, clean vehicles in the two countries. In addition, it will help transform the market through wider demonstration and replication effects.”
Mohamed Fadel Kane, MD Structured Finance of Societe Generale Group, said:
“Consistent with our “raison d’être” at Societe Generale—to co-create with our clients a more sustainable and prosperous future by delivering innovative, responsible financial solutions—we are proud to propel the evolution of sustainable mobility in Africa. With the successful backing of Spiro’s significant initiative, we are demonstrating our steadfast commitment to shaping the future of finance in alignment with global sustainability goals. These clean electric motorcycles are not just a stride towards reducing our environmental impact; they promise to stimulate economic growth in Togo and Benin and to fulfil the pressing mobility needs of Africa. The project’s financing was significantly strengthened by our partner GuarantCo. This successful partnership testifies to our ability to forge robust alliance, reinforcing our commitment to deliver sustainable, high-impact transformation”.
Jules Samain, CEO of Spiro, said:
“This pivotal partnership with Societe Generale and GuarantCo has accelerated our mission to tackle climate change, enhance public health, and empower Africa’s economies. By expanding our e-mobility footprint in Benin and Togo, we’re making significant strides in reducing greenhouse gases. This isn’t just about electric motorbikes; it is about envisioning a sustainable future for Africa and stimulating socio-economic growth through job creation and gender-inclusive employment. This alliance brings us a step closer to our goals, signalling transformative changes for Benin, Togo and beyond.”
Abdoul Aziz Ba CEO of ATIF, said:
“This transaction is an important milestone for Spiro and as a sponsor and main shareholder of Spiro, we strive to channel global private capital and expertise to companies operating in Africa. It is very important also to provide growth capital to our investment portfolios via innovative structures with local and international financial investors. As such the financing close with Societe Generale and GuarantCo is a great partnership to promote clean energy and sustainable growth in Africa.”
In this article
Overview
| Organization | Societe Generale Group, GuarantCo, Spiro |
| Source | GuarantCo and Societe Generale will provide an up to XOF 37.8 billion (c. USD 63 million) financing solution to finance Spiro’s fleet of electric motorbikes in Benin and Togo |
Updates
Spiro Lending Facility (Organization)
| Name | Role | Amount | Financing Instrument | Status |
| Societe Generale Group, GuarantCo | Investor | 63.000.000 USD | Debt | New |
Japan’s Toyota Tsusho wins contract for the 2nd Illoulofin solar power plant
Japanese company Toyota Tsusho has signed a public-private partnership (PPP) with the new Société béninoise de production d’électricité (SBPE) to develop the second phase of the Illoulofin photovoltaic solar power plant in the council of of Pobè in south-east Benin.
Toyota Tsusho is continuing its expansion in sub-Saharan Africa. The Tokyo, Japan-based company has just signed an agreement with Société béninoise de production d’électricité (SBPE) to develop the second phase of the Illoulofin photovoltaic solar power plant in the council of Pobè in south-east Benin.
The first phase of the project was completed in July 2022 with the commissioning of a power plant equipped with 47,212 solar modules, 113 inverters, six 3,515 kVA transformer substations, computer-assisted automatic control of the power plant and anti-intrusion surveillance and security systems. This first 25 MWp phase required an investment of 39.7 billion CFA francs (60.5 million euros) financed by the State of Benin with the support of the European Union (EU) and the French Development Agency (AFD).
RMT’s participation
SBPE is therefore turning to a public-private partnership (PPP) for the second phase. “The construction of this large-scale solar power plant will be presented as a Japanese PPP project that provides a stable source of low-cost electricity,” says Toyota Tsusho. The company, headed by Ichiro Kashitani, will be working with RMT, a German EPC (engineering, procurement and construction) company, a subsidiary of the French group Eiffage, which built the first phase of the Illoulofin solar power plant.
The second phase, with a capacity of 25 MW, is due to come on stream in 2024. This is “the first large-scale renewable energy plant construction project in West Africa by a Japanese company”, says Toyota Tsusho. But the company is also well established in other countries on the continent, notably in Egypt, where it has joined forces with French energy company Engie and Egyptian flagship Orascom Construction to install a 500 MW wind farm in Ras Ghareb, on the Gulf of Suez.
In this article
Overview
| Organization | Toyota Tsusho Corporation, Société béninoise de production d’électricité (SBPE), RMT |
| Project | Illoulofin Solar Power Plant: Phase II |
| Source | BENIN: Japan’s Toyota Tsusho wins contract for the 2nd Illoulofin solar power plant |
Updates
Illoulofin Solar Power Plant: Phase II (Project)
| Name | Role | Amount | Financing Instrument | Status |
| Toyota Tsusho Corporation | EPC | – | – | New |
| RMT | EPC | – | – | New |
| State of Benin, European Union (EU), French Development Agency (AFD) | Investor | 60.500.000 EUR | Debt | New |