Chinese fund fuels Spiro’s $270m Africa EV push
A Chinese investment fund participated in a $270 million equity funding round for Spiro, Africa’s largest electric vehicle company, providing a notable entry of Chinese capital into the continent’s clean transport sector.
The Dubai-based operator of electric motorcycles and battery-swap stations received $55 million from NewTrails Capital, a Shanghai-based growth-stage fund with offices in Shenzhen and Nigeria. The rest of the round included European and African institutional investors like Impact Fund Denmark, Equitane, and FEDA. Earlier in the year, Nithio and the Africa Go Green Fund contributed $50 million in debt financing.
NewTrails’ involvement supports China’s Belt and Road Initiative, which has expanded its focus to green technology in emerging markets. The fund targets Africa, the Middle East, Southeast Asia, and Latin America, positioning Spiro as a key player in Africa’s energy transition.
“As a Chinese fund dedicated to Africa’s energy transition and green technology, we welcome the growing role of Chinese supply chains and financing,” said Yufan Zhang, founding partner of NewTrails Capital. He called the deal an opportunity to develop infrastructure with commercial, social, and environmental advantages.
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Zhang indicated the fund’s commitment as a long-term investor, reflecting confidence in Spiro’s expansion. The agreement highlights a broader trend: African economies aim to reduce reliance on imported fuel, while China strengthens its presence in the continent’s EV sector.
Spiro operates in seven African markets. The fresh capital will fund expansion into the Democratic Republic of Congo, along with deeper partnerships with Chinese suppliers for local manufacturing.
African governments are promoting cleaner urban transport. Spiro’s battery-swap system solves a major hurdle—limited charging infrastructure—by offering a quicker option than overnight charging.
Still, the dependence on Chinese capital and supply chains creates new ties. The arrangement benefits both sides: Spiro accesses affordable Chinese components, while China extends its influence in Africa’s green economy.
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NewTrails’ participation may indicate a change in how Chinese investors engage with African startups. Traditionally, Chinese funding in Africa has focused on large infrastructure projects, but this deal suggests rising interest in early-stage clean energy and mobility ventures.
The funding round stands as one of the largest for an African EV company. Success could encourage similar investments, transforming the continent’s transport sector. Spiro’s expansion plans remain bold—and increasingly connected to China’s global economic strategy.
Local manufacturing partnerships will be essential.
