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Globally, 3.4 billion people lack access to motorised transport – a third of them living in sub-Saharan Africa. The conventional freight model across Africa is reliant on importing end-of-life diesel trucks from other markets and does little to address this challenge. In Rwanda, challenging terrain further compounds the unreliability and high fuel costs associated with this model, limiting its accessibility and affordability, with only a fraction of farmers able to afford trucking services. In areas where farms can only be reached by bicycle, animal, or on foot, harvest can’t be moved fast enough or far enough to build prosperous market links, leading to low incomes, food waste and inefficient value chains. The startup OX Delivers is committed to providing a better solution: offering clean, accessible and affordable transport in emerging markets via on-demand, zero-emission logistics.

Starting in Rwanda, OX is revolutionising the logistics sector for smallholder farmers with its own flat-pack electric trucks designed for rugged driving and long-life, with low costs per tonne-kilometre. The EV trucks are essential pieces of the OX ecosystem: combining goods shipment with financial, trading and marketing services, all enabled by purpose-built technology. This allows OX, their team of employed DriversPlus, and local communities to access new markets, increase their income, and develop new business opportunities – creating a self-reinforcing cycle of economic growth and social impact.

Our support 

The OX team was familiar with the angel investors of the tech world but had never worked with development finance institutions (DFIs). Seeking support, they turned to the GET.invest Finance Catalyst, whose advisors worked on bringing OX closer to the principles of DFIs and emphasising impact, additionality, and sustainability.

The GET.invest Finance Catalyst has been instrumental in introducing OX to several DFIs, and since the advisors’ involvement, OX Rwanda has raised €2.15 million in risk equity, €645,000 in grants, and €286,000 in commercial debt. The advisors also developed a financial model building out the OX logistics service in Rwanda using live pilot data, clarifying the company’s financing needs. Small-scale agriculture is vital to livelihoods and economies across Africa, and OX is well-positioned to scale its logistics services across the continent. In these ongoing efforts, the GET.invest Finance Catalyst is examining OX Global’s larger operational strategy and financing needs, including for the truck manufacturing arm.

The outcome

OX began in 2021 with just three pilot trucks and is now operating 29 trucks and four hubs around Rwanda. In addition to generating zero emissions, the OX truck is 50% cheaper to run than any diesel truck currently available on the market over a 20-year lifetime. Support from the GET.invest Finance Catalyst to connect with the right investors will help to get many more of these trucks on the road.

OX is also committed to investing in their people. Through their DriversPlus programme, the company employs over 80 people in Rwanda, who are trained to cultivate customer relationships and to care for their trucks and hubs plus lead business development and community relations. OX has further developed a digital platform to streamline logistics and customer interactions with their trucks and warehouses. It includes web and smartphone apps for dispatching, scheduling and routing vehicles, as well as piloting a simple USSD ‘app’ for the 80% of Rwandans who don’t use smartphones.

In 2023 the company carried over 19,000 tonnes of cargo for over €700,000 revenue. OX Delivers is already serving more than 4,300 customers, with many more to come, as word spreads about the new, streamlined way to get crops to market.

Disclaimer: This story was last updated in August 2024.