Thursday, 19th December, 2024
Africa’s transformation is being powered by companies that are redefining the status quo. One such pioneering force is Treepz, our portfolio company, which has delved into corporate mobility across the continent with their insightful 2024/2025 report.
Urbanization Surge
By 2050, 60% of Africans are projected to live in urban areas. This significant shift demands efficient and reliable mobility solutions, making urbanization one of the driving forces behind the need for innovative transportation options.
Economic Potential
The economic potential of Africa’s public transport sector is immense. Revenues are expected to reach $8.78 billion by 2024, growing at an annual rate of 5.47% to hit $11.46 billion by 2029. This growth highlights the critical role public transport plays in Africa’s economic landscape.
Growing User Base
Public transport services are set to see a substantial increase in users, reaching 820 million by 2029, with penetration rising from 47.7% to 56.3%. This surge underscores the necessity for scalable, efficient, and accessible transport solutions.
Cost-Efficient Transportation
Outsourcing employee transportation can save companies up to 80% of costs compared to owning fleets. This cost-efficiency is transformative for businesses, optimizing operations and reducing expenses significantly.
Environmental Impact
Corporate mobility is also making strides in reducing environmental impact. By taking over 600,000 vehicles off the road, shared mobility initiatives are helping to alleviate traffic congestion and cut down on pollution in major cities.
Rising Fuel Costs
With fuel costs in Nigeria soaring by 328% between 2023 and 2024, outsourced mobility solutions present a more sustainable and cost-effective alternative to vehicle ownership.
Treepz’s Achievements
Treepz has already made a notable impact, completing over 5 million rides across Nigeria, Ghana, Uganda, and Kenya. Their success demonstrates the viability and effectiveness of innovative mobility solutions in diverse African markets.
Potential for Growth
With only 44 vehicles per 1,000 people in Africa, compared to 180 globally, there is immense potential for vehicle rentals and car-sharing services. This gap presents a significant opportunity for growth and innovation in the mobility sector.
Sustainability Efforts
Treepz’s initiatives have led to the reduction of 922,000 kg of CO2, underscoring the importance of sustainability in corporate mobility. By promoting shared mobility, Treepz is contributing to a greener and more sustainable future.
Industry Growth
The corporate mobility sector in Africa is valued at over $33 billion, driving operational efficiency and productivity for businesses across the continent. As the industry continues to grow, it will play a crucial role in supporting Africa’s economic development.
Future-Ready Solutions
Looking ahead, the integration of electric vehicles (EVs), smart systems, and green transport solutions will reshape Africa’s mobility landscape by 2030. These future-ready innovations will enhance efficiency, sustainability, and accessibility.
Conclusion
Corporate mobility is poised to solve some of Africa’s most pressing transport challenges, fostering economic growth and sustainability. As Treepz and other innovative companies lead the way, they are not only meeting the demands of a rapidly urbanizing continent but also setting the stage for a sustainable, efficient, and prosperous future for Africa.
📖 Source: Treepz – The State of Corporate Mobility in Africa Report
ODBA champion visionary founders who leverage technology to craft extraordinary success stories. Our portfolio boasts investments in 24 technology companies spanning 10 countries, generating more than 1,800 direct jobs and serving a vast community of over eight million users and customers. We take immense pride in the profound impact our portfolio companies have already achieved across the continent and eagerly anticipate future contributions to the transformative landscape of Africa.