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Renda’s Bold Vision for a Sustainable Future
As Africa faces pressing environmental challenges, Renda Africa—a Nigerian logistics startup—has emerged with a bold initiative to convert over one million vehicles across Nigeria, Ghana, and Kenya to run on compressed natural gas (CNG) by 2027. The transition to CNG is seen as a more affordable and accessible step towards cleaner transport, especially in markets where electric vehicles (EVs) may not yet be viable for everyday drivers.
Transforming Mobility in Africa
Co-founder Ope Onaboye elucidates Renda’s strategy: “By removing upfront cost barriers and enabling real-time service tracking, we help drivers and fleet owners transition more affordably to alternative fuels.” The company plans to leverage its embedded finance platform, SCALE by Renda, to facilitate this transition by offering accessible credit arrangements that reduce the financial burden on vehicle owners.
Environmental Impact and Cost Benefits
If successful, Renda’s goal could eliminate approximately 3.32 million metric tons of carbon dioxide emissions annually, equating to the ecological benefit of planting 115 million trees. In financial terms, given Nigeria's high fuel prices—ranging from ₦865 to ₦950 ($0.57 to $0.63) per litre—adoption of CNG, costing about ₦450 ($0.30) per standard cubic meter, seems increasingly attractive.
Innovative Solutions for Adoption
Renda recognizes that upfront conversion costs, which can reach up to ₦3 million ($1,991) per vehicle, have hindered CNG adoption despite governmental backing. Therefore, the startup has introduced flexible credit-based repayment plans. For many drivers, repayments of ₦2,500 to ₦3,500 ($1.66 to $2.32) per day could be significantly lower than current daily fuel costs.
Strategic Partnerships Boost Growth
Renda acts as a facilitator rather than a direct converter, partnering with a network of accredited conversion centers and local gas suppliers, which exemplifies the collaborative spirit of innovative African startups. More than 2,000 drivers have already benefited from the platform since its inception in 2021, with plans for further expansion into new cities.
Although Renda is betting on CNG for the short term, it’s also keeping an eye on the future of electric mobility, positioning itself to accommodate this shift when the time arrives. With a vision for not just economic savings but sustainable growth, Renda Africa illustrates a compelling narrative of how African startups are responding to local challenges with innovative solutions.
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