🎬Automobile exits

Happy Friday! Today is also National Tell a Joke Day so we decided nothing could quench your excitement for the weekend faster than a dry dad joke. We sampled jokes from 13 volunteers and we’ve decided to raise you the corniest of them all.

“What do sea monsters eat? Fish and ships.”

— Chibuike Uzor, Edna Akanni.

MANUFACTURING

KENYAN CAR MAKER, MOBIUS FINALLY LIQUIDATES

Mobius Motors, a Kenya-based automaker has entered voluntary liquidation after efforts to turn the company profitable and rescue the company failed. The company had struggled to settle suppliers and pay salaries for over a year.

The company’s hard 180 comes after it’d raised $56 million over five rounds of funding to manufacture sturdy vehicles serving SMEs in agriculture and infrastructure.

Faulty business model or low demand?

Mobius opted for a stripped-down SUV model ‘built for the African rough roads’ in 2014. Their initial prototype would cost $10,000 with the intent of easing its entry into the market. Mobius III, their latest prototype came in at a list price of $43,000, still a far cry from the Jeep Wranglers and Toyota Prados which though locally assembled, cost a hefty $65,000 on average.

The company didn’t specify a reason for its liquidation. That being said, analysts suspect the real culprit to be the average Kenyan’s preference for low-cost second-hand vehicles. With the Kenyan shilling fighting harder than a man whose rent is due against the dollar, prices of used vehicles have dropped by double digits to an average of $8000 per car.

Same old story? Across Africa, a consistent storyline is easy to discern. Local automotive manufacturers are hell-bent on producing expensive vehicles, in a very market, with zero export potential. All while ditching automation to employ as many people as possible. With 720,000 cars bought on average yearly, Nigeria only produces 1/5th of that number locally, making it the 3rd highest importer of used vehicles globally.

Looking ahead. Mobius has since been acquired by an undisclosed buyer looking to utilize its factory setup to revamp the embattled entity. EA.

AFRICA

Headline Quickie

Electric Mobility Revolution. African countries, particularly Kenya and Uganda, are seeing a surge in the adoption of electric motorcycles, driven by environmental concerns and rising fuel prices. With the continent's largest motorcycle taxi market, Kenya is leading the way, transitioning rapidly towards green transport solutions. This shift is expected to reduce pollution, cut costs, and create numerous green jobs across the region.

Manufacturing Growth. Africa is emerging as a global manufacturing powerhouse, with countries like South Africa, Nigeria, and Egypt leading the charge. Special Economic Zones (SEZs) are playing a crucial role in attracting investment and driving industrialization. However, challenges such as insufficient infrastructure and political instability continue to impede growth. The continent's youthful population and strategic trade agreements are creating a promising environment for further expansion in this sector.

Talent Exodus Concerns. Nigerian President Bola Tinubu urged African leaders to address the ongoing exodus of skilled professionals from the continent. Speaking in Equatorial Guinea, he emphasized the need for Africa to invest in research and development to retain talent and drive local solutions to the continent's challenges.