Mobius Motors, a Kenyan car manufacturer known for producing affordable SUVs tailored for Africa’s challenging roads, has agreed to a takeover offer from an undisclosed buyer. This move prevents the company from entering voluntary liquidation, a fate it had been considering due to ongoing financial difficulties. Founded a little over ten years ago by Joel Jackson, a London-born entrepreneur, Mobius Motors has faced increasing challenges that have threatened its survival in recent years.
The carmaker, which gained recognition for its rugged, no-frills SUVs designed to navigate Africa’s rough terrain, made headlines earlier this month when it announced plans to wind down its operations. However, after attracting significant interest from potential buyers, the company has now decided to accept a takeover bid. In a brief statement, Mobius Motors confirmed that both parties aim to finalize the transaction within 30 days, though details regarding the buyer and the financial terms remain confidential.
Joel Jackson established Mobius Motors after witnessing firsthand the difficulties posed by Africa’s often poor-quality roads while working for a forestry company in Kenya. His vision was to create a durable, low-cost vehicle that could withstand the continent’s rugged landscapes. The initial model produced by Mobius Motors was a simple, boxy SUV priced at around 1.3 million Kenyan shillings, or approximately $13,000 at the time. This price point was roughly half that of an imported second-hand SUV, making it an attractive option for African consumers with modest budgets.
Despite the early success and strong demand for its initial vehicles, Mobius Motors began to encounter significant financial challenges. High levels of debt, coupled with elevated taxes and rising interest rates in Kenya, made it increasingly difficult for the company to maintain profitability. According to industry executives, these economic factors have also dampened overall demand for new vehicles in Kenya, further straining Mobius’s finances.
The company’s struggles are emblematic of the broader difficulties faced by home-grown vehicle manufacturers across Africa. Mobius Motors was part of a wave of new automotive ventures aimed at reducing reliance on imported vehicles and creating jobs on the continent. Other companies in this movement included Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors. These firms sought to capitalize on growing economies and increasing consumer demand by producing locally made vehicles.
However, the challenges they encountered were significant. In addition to the economic hurdles, these companies had to compete with the influx of second-hand imports, which remain popular among African consumers due to their lower prices. The competition from used vehicles, many of which are imported from abroad, has been particularly stiff, making it difficult for local manufacturers to gain a strong foothold in the market.
Global automakers have also taken notice of the potential opportunities in Africa’s growing economies. Companies such as Japan’s Toyota Motor Corporation and Germany’s Volkswagen AG have expanded their investments in the region, targeting markets like Kenya and Rwanda. These global giants have sought to tap into the rising consumer demand for vehicles in these countries. Despite their size and resources, however, they too have had to contend with the same challenges faced by local manufacturers, including high taxes, fluctuating interest rates, and the pervasive presence of second-hand imports.
For Mobius Motors, the decision to accept a takeover bid represents a significant turning point. The company, which had been on the brink of voluntary liquidation, now has a chance to continue its operations under new ownership. The identity of the buyer remains unknown, as does the specific strategy they will employ to steer the company back to stability. However, the news of the takeover has generated cautious optimism among those who support the development of Africa’s automotive industry.
In its statement, Mobius Motors expressed a desire to move forward quickly with the transaction, indicating that the parties involved are keen to close the deal within the next month.
