First a dissection of the tyre market in four different sectors – one that was severely affected and three that have been the mainstay of resilience.

Cowrie Shells of Trade

Initially, Cowrie shells were used as currency for trading right after the barter age. Cowrie shells were/ are still used in astrology in many parts of Africa to predict the future. Four cowrie shells held in the hand, the astrologer would then shake the shells while clenching the fist and throw them to the ground. Depending on how many shells turned upside, the astrologer would then tell the future. In my case, three have turned upside and one facing down – an ominous sign.

(Cowrie Shell number 1) The Motorcycle  Market

Also known as ‘bodabodas’, motorcycles are divided into the mid-premium, premium and commuter motorcycles. The rise in numbers in pre-pandemic times and presently is because of their ability to move efficiently in urban and rural areas, especially where the road conditions are poor. 

 Between 2011 and 2019, the number of motorcycles grew 233 percent from 500,000 to 1.7 Million. The average annual demand for motorcycles is 200,000 units – a demand that is fuelled by a relatively affluent rural population with a drive for personal mobility (Source: Kenya Automotive Sector Profile – 60 years Anniversary edition). Motorcycle tyres sales have not lagged behind in the regard, with most of the imports coming from India and China. Often these tyres are not recyclable.

(Cowrie Shell number 2) Commercial Market Truck

The shift in rules and regulations surrounding travel has come with uncertainty and border closures that were aimed at stopping the spread of the disease. Closure of some truck tyre producing plants and ensuring that the overseas parent markets demands were met before exports meant that there was a shortage in this sector. The sector has been supported by the Light Commercial Vehicle tyres from the 7.00-16, 7.50R16, 9.5R17.5, 265/70R19.5 and, more recently, 255/70R22.5 (FI engines). These vehicles are not under the spotlight of weigh-bridge restrictions as compared to their bigger rig 22 and above wheeler cousins and hence have become a vehicle of choice of up-coming and existing transporters wanting to squeeze the payload shilling to a longer mile. Even in the absence of verifiable date or research papers, it is estimated that commercial driving has dropped by about 20 percent.

(Cowrie Shell number 3) Agricultural Tyres

The sector that continues on an upturn is one that continues to feed the millions of people every day. Even with a prediction of drought at the end of the year, tractors and farmers on the road continue to grind tyres to ensure that there are products from the farm to fork. The OEM/ replacement/aftermarket sectors are experiencing a rise in demand for efficient and productive agricultural machinery that is driving the agricultural tyre market. It is primarily the technological advancements and expanding population that are propelling the agricultural tyre market. Sameer Africa, the only agricultural tyre manufacturing concern in the country, closed its doors in 2019. While the overall scenario of the market is positive, the demand is hugely dependent on the economic turmoil in the region that invariably affects the farmers’ income and purchase of farm machinery. However, a downturn in farming equipment sales is expected to continue till 2022 as Covid-19 severely impacted the automotive industries.

Changing agricultural machinery design and increasing penetration into new unexplored terrain will require tyres that have stronger rubber compounds. Flotation, forestry, trailer and compound rubber tyres with steel flex wall are now trending in the local agricultural tyre market.

(Cowrie Shell number 4) Passenger and 4x4

Regarding the future impact of personal and business travel, Bill Gates recently noted that we can ask the question “Do I have to go there personally? ” and predicted 50 percent decline for the post Covid-19 world. In addition to that, walking, cycling and motorcycling have gained preference.

In addition to the specifics of the tyre market, various factors continue to plague the East African tyre industry, and they include:

•           Uncertainty that the virus will move into the winter months and the Delta variant. With less than 10 percent of the population now vaccinated in the East African region, it is difficult to say how the disease will pan out. What is certain is that the periods of confinement will continue deep into 2022 (an election year in Kenya).

•           At some point this year, freight costs rose by 300 percent. Tyre sellers had no option but to pass the cost to the consumer. Supply chain disruptions are here to stay mainly because Kenya will be having the general elections next year. Tanzania and Uganda have already had theirs. In such times, many investors hold back on the resources waiting for regime change and the chaos that follow a general election.

Rangoli of Possibilities

Many years ago, I woke up every day to beautiful drawings made on the ground in front of a neighbour’s doorstep. Drawn by a young Indian girl, I later came to learn their meaning. Using multi-colored, ochre, dried rice sand, flour, rocks and petals, beautiful drawings were made on the doorstep as a part of an everyday Hindu household practice – even more so, during the important Hindu ceremonies such as Diwali, Pongal and Tihar (I would urge the reader to view some of these drawings on Google). The Rangoli represents happiness, positivity and liveliness of a household (nation) intended to welcome health and happiness. It is for this reason that I intend to paint here that African Tyre Market Rangoli during this very trying Covid times mostly for therapeutic purposes. 

It is in these Rangolis of possibilities that I would like to offer my predictions and possible solutions:

Prediction no. 1

In East Africa, future urban mobility will not rely on individual car traffic regardless of the propulsion system. The pandemic will cause urban planners to re-think the transport framework policy. Policy makers will nurture the momentum gained to further transform the traffic landscape towards environmentally friendly towns and cities.

Prediction no. 2

In the midst of dwindling and scarce resources, the one that remains unlimited is ‘IDEAS’. E-commerce readiness will be vital in determining the survivability of a business during the Covid-19 pandemic. The level of readiness will determine their continuance and sustainability.

E-commerce readiness can be examined on the basis of Technological readiness / Organisational Readiness and Environmental Readiness. Challenges and constraints thrown our way, such as the Covid-19 proffers, only encourage a business to adopt e-commerce and take it to another level. (Ref. Journal of Asian Finance, Economics and Business)

Suggestions on how to weather the storm

In order to strive, thrive and stay ahead of the pandemic curve, businesses in East Africa have to adopt different business strategies:

•           Tyre business owners and managers must consider going against the previous market stock trends such as Just in Time Management. Maximise coverage, over-order on fast moving items, plan way ahead, order early, sell what your competition can offer you and pro-actively communicate with customers about impending shortage (being upfront and honest)

•           Being constantly in touch with suppliers, strategically allocate stocks, buy out of the normal circles, train front-line staff on up-downsizing-cross sizing and tyre husbandry.

•           Invest in your people in training (preferably online) and keep moral high.

•           With pricing; work around keeping your cost low and don’t raise prices when you can’t supply. This puts you up against a customer.

 What the Cowrie shells on the ground say

I would like to pen-off with the words of Kenya’s finance cabinet secretary, Ukur Yatani Kanacho:

“Last year around this time, you would think that ours was a deserted city. Life is now back to normal, the vibrancy is back. We are quite optimistic. Kenyans have accepted and adopted to the new way of living and we are quite alive to the challenges posed by Covid-19”. (TT)

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With the rise of electric vehicles reducing exhaust emissions, attention is shifting to non-exhaust emission like Tyre and Road Wear Particles (TRWP). These microscopic particles, generated from tyre and road surface friction, are a growing environmental concern and will be addressed in the upcoming Euro 7 emissions standard. To tackle this challenge, Nynas has joined a major research consortium coordinated by the Royal Institute of Technology (KTH), alongside Volvo Cars, Scania and the Karolinska Institute.

The project aims to close a significant scientific knowledge gap by thoroughly investigating the formation, characteristics and environmental impact of TRWP. Nynas contributes a unique dual perspective to this interdisciplinary effort, bringing deep expertise in both tyre rubber compounds and bitumen-based road materials. Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, represents the company in the project alongside the company’s Chief Scientist, Dr Xiaohu Lu, who brings extensive expertise in bitumen and asphalt to the collaboration. A key focus will be understanding how different materials contribute to wear mechanisms.

The research scope extends beyond particle analysis to include measuring the rolling resistance of various tyre and bitumen combinations, a parameter directly linked to vehicle energy efficiency and greenhouse gas emissions. By uniting industry and academia, this collaboration is poised to drive innovation and set new benchmarks in sustainable mobility research.

Pär Nyman, Technical Manager – Tyre & Chemical Industries, Nynas, said, “While Sweden lacks domestic tyre manufacturers, Nynas' research capabilities fill that gap by providing foundational insight into the chemistry and physics behind TRWP generation. Nynas' rubber and asphalt labs are at the heart of this contribution. One of the core insights driving this initiative is that wear particles cannot be fully understood by analysing tyres or roads in isolation. It's the interaction – the system – that matters. By studying both tyre composition and road structure, the project aims to develop a holistic view of TRWP formation, dispersion and toxicity. At Nynas, we are excited to contribute our unique knowledge of materials to help solve an important challenge for both the environment and human health. Through collaboration and scientific inquiry, we aim to pave the way for cleaner roads and cleaner air – one particle at a time.”

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Ecolomondo Corporation, a Canadian developer of sustainable tyre recycling technology, has released its unaudited financial results for the second quarter ending 30 June 2025. The period was marked by significant progress in commercialising its Hawkesbury thermal decomposition facility, particularly within the recovered carbon black (rCB) department. A major milestone was reached with the installation and commissioning of new milling equipment, a critical step for the plant to achieve full operational capacity, as rCB is its primary revenue generator.

Following the quarter's end, the company's main rCB client formally approved the product quality, leading to five consecutive purchase orders for multiple truckloads delivered between July and August. A separate US-based customer has also approved the rCB quality, with bulk purchase orders anticipated imminently.

Financially, Ecolomondo secured USD 1.5 million through private placements and finalised a significant agreement with Export Development Canada (EDC). This arrangement provides a temporary postponement of principal and interest payments on three existing loans, improving the company's working capital and investor confidence. This debt modification resulted in a gain of USD 2,495,209, which contributed to a reported net profit of USD 1,452,712, for the quarter, despite an operating loss, which stood at USD 1,042,497 for the quarter, compared to USD 443,418 for the same period of 2024.

Revenue saw substantial growth, increasing by 212 percent to USD 395,149 compared to the same period in 2024, driven by product sales and tipping fees at the Hawkesbury plant. Capital expenditures for the Hawkesbury TDP turnkey facility totalled USD 51,358,723 after accounting for depreciation, while the company’s cash and cash equivalents stood at USD 1,508,645. Over the coming 12 months, Ecolomondo anticipates utilising an additional USD 2.0 million, which will be primarily allocated to covering ongoing working capital requirements and essential capital purchases for the Hawkesbury facility.

The company also advanced its global expansion strategy, signing a definitive agreement with ARESOL, a renewable energy group, to construct four turnkey recycling facilities in the European Union. The first plant is planned for Valencia, Spain. At its Annual General Meeting, all management proposals were unanimously adopted by shareholders.

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The European Tyre and Rubber Manufacturers’ Association (ETRMA), alongside 13 other European business organisations, has signed a Joint Statement urging the European Commission to ensure a strong and ambitious implementation of the Data Act.

The coalition, including numerous SMEs and Small Mid-Caps from the digital and industrial sectors of European companies, has urged the European Commission to uphold the regulation against pressure to dilute its core provisions, identifying it as a crucial framework for unlocking industrial data across the EU economy. The signatories contend that a robust implementation is vital for fostering a competitive market and unleashing innovation, particularly for smaller businesses.

The coalition highlights the Act’s benefits, which include empowering SMEs with data portability rights, protecting them from unfair contractual terms and mandating that data sharing occurs on fair, reasonable and non-discriminatory (FRAND) terms. A key provision requires cloud providers to facilitate switching through open standards, combating vendor lock-in. The statement expresses concern that lobbying efforts for delayed enforcement, weaker interoperability definitions and reliance on global standards without fairness guarantees threaten to undermine these objectives.

For the Data Act to be effective, the coalition insists on full implementation to open data markets to genuine competition and prevent SMEs from being excluded by legal complexity. The statement also calls for a proportionate approach, requesting practical guidance, standard contractual clauses and well-resourced enforcement authorities to support smaller companies. It notes that in certain sectors, supplementary legislation may be needed for full clarity.

The coalition concludes that strong enforcement is paramount, asserting that without it, the Act's rights will remain theoretical. They warn that any delay or softening of key provisions risks reinforcing the very market barriers the regulation was designed to eliminate. The signatories urge the Commission to ensure robust enforcement to secure a competitive and innovative Single Market for all companies.

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The Yokohama Rubber Co., Ltd. has been selected as the official tyre supplier for the groundbreaking FIA Extreme H World Cup, the world's first hydrogen-powered motorsport series. The company will supply its GEOLANDAR brand of tyres for the championship, which is scheduled to commence next month in Saudi Arabia. The company will also continue to supply GEOLANDAR tyres for the Extreme E off-road electric vehicle series, which holds its final event on 4–5 October in Saudi Arabia.

Central to both the Extreme H and Extreme E series is a shared mission to advance sustainability and equality. The championships serve as dynamic platforms to promote environmental awareness and demonstrate cutting-edge technologies while also enforcing a strict mandate for gender parity by requiring each team to field one male and one female driver. The Extreme H series will feature eight international teams operating the Pioneer 25, a cutting-edge hydrogen fuel cell vehicle capable of generating 550 horsepower and accelerating from 0 to 100 kmph in 4.5 seconds. The global significance of this new championship is expected to draw a worldwide television audience across multiple continents.

As the predecessor to Extreme H, the Extreme E series utilised the high-performance all-electric Odyssey 21 vehicle. All teams competing in the new hydrogen series will also participate in this final Extreme E event, marking the conclusion of the electric championship as it transitions towards a hydrogen future.

In alignment with the environmental principles of these series, Yokohama Rubber will provide a specially developed prototype tyre based on its GEOLANDAR X-AT model. This tyre has been engineered with a significantly increased ratio of sustainable materials, comprising 38 percent renewable and recycled content. It has also been fortified with enhanced durability characteristics to withstand the unique demands of heavy hydrogen-powered and electric off-road racing vehicles.

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