The Private Infrastructure Development Group (PIDG) has made a foray into the Southeast Asian country of Laos, investing $2.5 million in the country’s largest ride-hailing service LOCA, according to a statement.
The convertible loan will provide growth capital to pilot a fleet of up to 20 electric vehicles, and help LOCA expand its electric vehicle charging network by adding another 54 charging stations. There is also a $60,000 technical assistance grant that will finance commercial due diligence to assess the broader electric vehicle market in the country.
The ride-hailing market in Laos is forecast to grow at a compound annual growth rate of 4.33% to reach an estimated 1.6 million users, valued at over $8 million in revenues, over the next five years. To cut carbon emissions, the Lao government has set targets to increase the share of EVs in the country to comprise over 30% of all vehicles by 2030, compared to about 1% of all vehicles currently.
PIDG is funded by the governments of the UK, Netherlands, Switzerland, Sweden, Australia, Canada, and Germany. It operates mainly in sub-Saharan Africa and South and Southeast Asia, on climate projects and sustainable development.
It has made significant investments in the region, including in Vietnam, where it has financed major clean water facilities, a utility-scale solar farm, and into electric motorcycle startup Dat Bike.
