.jpeg)
Urbanization is rapidly reshaping the landscape of cities around the world, particularly in emerging markets like Africa. The United Nations predicts that by 2050, nearly 68% of the global population will reside in urban areas, with African cities expected to triple their urban populations to over 1.34 billion people. This surge brings both challenges and opportunities: while cities drive economic growth, they also strain infrastructure, especially transportation systems, leading to increased congestion, pollution, and environmental degradation.
ENAKL’s innovative approach to mass transit addresses these challenges head-on. By providing a tech-enabled, shared transportation solution, ENAKL is transforming urban mobility in Morocco and setting a precedent for other African cities. Here’s why we believe ENAKL is poised to make a significant impact and why we chose to invest in their vision.
ENAKL is tackling one of the most pressing issues facing rapidly urbanizing regions: the environmental and social impact of inefficient transportation systems. Transportation is a major contributor to global carbon emissions, with the sector responsible for nearly 24% of all energy-related CO2 emissions, according to the International Energy Agency. In Africa, where many cities still rely on outdated and heavily polluting transportation modes, the need for sustainable alternatives is critical.
ENAKL’s model of pooling passengers into shared minibusses not only reduces the number of vehicles on the road but also cuts down on greenhouse gas emissions and traffic congestion. This is particularly impactful in densely populated urban areas like Casablanca, where air quality and traffic are major concerns. Furthermore, ENAKL’s commitment to integrating electric vehicles (EVs) into their fleet aligns with global efforts to transition to low-carbon economies and supports the objectives of the Paris Agreement to limit global warming to well below 2°C. Lastly, offering access to adequate transportation solutions is critical for beneficiaries to adapt to negative climate change effects, especially in a country now regularly beating temperatures records (over 50 degrees recorded in Agadir in 2023).
Beyond environmental impact, ENAKL also plays a vital role in promoting social inclusivity. In many African cities, women face significant barriers to accessing safe and reliable public transportation, which can limit their economic opportunities. ENAKL’s focus on providing secure and dependable transit options empowers women, contributing to greater gender equity in urban mobility. Notably, 60% of ENAKL users today are women. Additionally, by improving access to transportation, ENAKL supports economic growth by enabling more people to participate in the workforce, thus driving broader economic development in the cities it serves.
At the heart of ENAKL’s success is its innovative use of technology to optimize urban transit. ENAKL leverages advanced data analytics, machine learning, and route optimization technologies to enhance operational efficiency, ensuring that minibuses run at high occupancy rates while minimizing operational costs. The team’s tech-driven approach and commitment to continually optimize routing, demand forecasting, and dynamic pricing show promise to not only make ENAKL’s services more affordable for users, but to also maximize the environmental benefits by reducing per-passenger emissions.
ENAKL’s strategic focus on the B2B and B2B2C segments has also been a key innovation. By securing long-term contracts with businesses for employee shuttles, ENAKL creates a stable and recurring revenue model that is less volatile than a purely B2C approach. This strategy has allowed ENAKL to achieve quicker break-even points on new routes, with some consistently maintaining filling rates of 80-95%. This approach not only reduces customer acquisition costs but also ensures predictable and scalable growth.
The substantial growth potential for ENAKL is closely tied to the future of urbanization in Africa. As African cities continue to expand, the demand for efficient and sustainable transportation solutions will only increase. ENAKL is strategically positioned to capitalize on this demand by expanding its network of routes across Morocco and into other rapidly growing cities across North Africa, such as Tunis, Dar es Salaam or Dakar.
ENAKL’s scalable business model, supported by its tech-driven approach, ensures that it can grow efficiently while maintaining high levels of service quality. The company’s phased approach to growth—starting with high-potential B2B routes and gradually expanding—ensures that each new route reaches profitability quickly. This methodical expansion strategy, combined with the team’s deep expertise in technology and operations, positions ENAKL to capture significant market share in the region’s burgeoning urban transit sector.
As global and regional emphasis on sustainability intensifies, ENAKL’s commitment to reducing emissions and promoting social equity should attract partnerships and support from governments, NGOs, and international organizations — crucial steps as ENAKL scales its operations across the continent.
We invested in ENAKL because we believe in its mission to revolutionize urban mobility in Africa. The company’s innovative use of technology, its focus on sustainability, and its strategic approach to growth make it a compelling investment. ENAKL is not just addressing the immediate challenges of urban transportation; it is paving the way for a more sustainable, inclusive, and efficient future for cities across Africa.
In a world where the future of our cities depends on our ability to adapt to rapid urbanization and climate change, ENAKL’s vision of a more sustainable and equitable urban transport system is one that we are proud to support. We look forward to partnering with ENAKL on this journey and to witnessing the positive impact it will have on millions of people across the continent.
Read more from our team at Catalyst Fund
