The STROOM - Greater Stellenbosch Trust (GST) partnership aims to transform South Africa's delivery services by integrating cargo e-bikes into the delivery fleets of micro, small and medium-sized enterprises (MSMEs), enhancing efficiency and addressing key challenges in delivery logistics and operations with innovative, financially viable and impactful solutions.
P4G has awarded the partnership about US $345,000 in grant funding.
The STROOM - Greater Stellenbosch Trust (GST) partnership is driving a shift towards zero-emission deliveries in South Africa by expanding the use of cargo e-bikes in townships and cities. Its key objectives include testing and refining sustainable e-bike leasing models, developing educational programs for local entrepreneurs, and integrating e-bikes into urban logistics.
South Africa is significantly behind in electric vehicle (EV) adoption for last-mile delivery, largely due to high upfront costs and inadequate infrastructure. Existing EV solutions often lack the versatility needed for last-mile logistics, especially in townships with narrow and poor roads. STROOM, a women-led cargo e-bike manufacturer, has developed robust intellectual property rooted in local expertise garnered through extensive testing and adaptation.
To date, it has successfully introduced four cargo e-bike models to the market, providing an affordable, efficient and eco-friendly option tailored for urban delivery. With over 35,000 km of deliveries in townships, STROOM's e-bikes prove effective in these environments. Furthermore, with high logistical costs associated with cargo e-bike imports, STROOM, as the sole domestic manufacturer in South Africa, has a strong competitive positioning.
GST is a public trust that supports human rights, civic space and community initiatives. Since its establishment in 2001, GST has grown to become a cornerstone, providing significant contributions to the Kayamandi community and continuing to support local development through various projects.
In 2023, the STROOM-GST partnership conducted a cargo e-bike pilot study funded by the Bavarian Government and overseen by Deutsche Gesellschaft für Internationale Zusammenarbeit. This program led to the establishment of three Black-owned delivery businesses in Soweto, Llanga and Kayamandi, employing 17 drivers and deploying 12 STROOM cargo e-bikes. It completed over 35,000 km of deliveries, reducing CO2 emissions by 3.8 tons.
During this partnership period, the STROOM-GST partnership seeks to create 420 green jobs and continue expanding its e-bike fleet. It will also conduct workshops to highlight the benefits of cargo e-bikes and advocate for supportive policies and infrastructure, such as dedicated bike lanes and secure parking, to facilitate the adoption of cargo e-bikes.
By focusing on eco-friendly solutions, strategic policy enhancements and fostering a regulatory environment that champions sustainable urban mobility, the STROOM-GST partnership aims to pave the way for greener, more efficient last-mile delivery services in South Africa.
The partnership comprises the following partners: STROOM (lead business partner); Greater Stellenbosch Trust (lead administrative partner).