OPIC Loan to Support Manufacture of Affordable, Durable Cars in Africa
April 17, 2018
(OPIC)
WASHINGTON, D.C. - The Overseas Private Investment Corporation (OPIC), the U.S.
Government’s development finance institution, has disbursed a $5 million loan
to Mobius Motors Kenya Limited, which manufactures vehicles in Africa designed
for Africa’s roads and drivers.
Mobius, the only company manufacturing cars in Kenya, will use the OPIC loan to
expand production. The company, which has manufactured and sold 50 vehicles to
date, will apply the loan proceeds to the development of a new manufacturing
facility near Nairobi. Mobius aims to produce an additional 1,900 vehicles by
2019.
“Mobius has developed an innovative solution to the shortage of affordable
transportation in Africa, which is one of the biggest hurdles to economic
growth,” said Ray W. Washburne, OPIC president and CEO. “By making
transportation more affordable and convenient, these vehicles will improve
overall mobility in East Africa, and expand access to education, healthcare, and
employment.”
Mobius describes its vehicle as a car Designed for Africa and Built in Africa.
Only about five percent of the population in Africa owns a car, many of the cars
on the road are imported used cars that are not suitable for the challenging
road conditions. Public transportation in many regions is also limited and
unreliable.
The Mobius vehicles add performance-critical features like rugged suspension,
while eliminating nonessentials like parking sensors and automatic windows to
keep prices low. The vehicles rides well on unpaved roads and costs about half
the price of a five-year-old SUV.
Several of the company’s early customers have been small businesses including
a baker who needed a more durable vehicle to complete product deliveries to
remote communities, and a tourism company operator who drives visitors through
the Nairobi National Park.
OPIC’s $5 million loan is part of an $11 million financing, which also
includes investment from the New York-based PanAfrican Investment Co.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.
The Export Practitioner
Providing readers with expert reports on changes to U.S. export licensing rules, enforcement policies and regulations for defense and dual-use products and technology.
Washington Tariff & Trade Letter
Providing exclusive, behind-the-scenes news and analysis every week of U.S. trade policies, regulations and legislation, export controls, trade sanctions, and enforcement of antidumping and countervailing duty laws.
Mastering Deemed Exports
An invaluable video training tool that helps exporters, universities and research laboratories alert all employees to the potential fines and legal sanctions that can come from violating EAR and ITAR restrictions on giving certain foreign nationals access to controlled U.S. technology.