Electric vehicles (EVs), e-bikes, and scooters are central to Africa’s clean mobility future. But high upfront costs and weak financing options often delay adoption. Device financing is emerging as a game-changer; making e-mobility accessible, affordable, and scalable. Recent initiatives in Rwanda illustrate how this approach not only boosts EV uptake but also aligns with the African Continental Free Trade Area (AfCFTA) vision of intra-African trade, industry, and shared prosperity.
Umurabyo; Rwanda's first affordable EV taxi has officially launched in partnership with Kabisa, SONARWA General Insurance, and Sonarwa Life Assurance Company Limited, marking a bold step toward smarter, sustainable mobility.
What is Device Financing?
“Device financing” refers to financial products that allow individuals or businesses to acquire electric mobility devices, EVs, e-motorbikes, or charging equipment by paying over time rather than upfront. This might include:
- Asset finance or leasing: reduced monthly payments, spreading costs
- Interest-free or low-interest loans for EV/hybrid vehicles
- Bank financing tied to green mobility incentives
These schemes lower the financial barrier for many Africans, especially for small businesses, moto-taxi riders, or those in peri-urban areas.
Case Study: Rwanda’s Device Financing & EV Incentives
Rwanda is pushing aggressively towards e-mobility for 2030, with targets to have 20% of public transport electric.
Some financial innovations are doing the heavy lifting:
- Ecobank Rwanda & Longtai Partnership: Ecobank launched an interest-free scheme for customers buying EV or hybrid vehicles. Up to 100% financing, and if repaid in 2 years, the cost of interest payments is discounted.
Image by the New Times
- NCBA + Volkswagen Move: NCBA and Volkswagen Rwanda formed a partnership to allow customers to acquire vehicles via monthly payments, opening up access.
Image by the New Times
- NCBA’s EV Charging Stations Investment: Beyond financing, NCBA has installed EV charging infrastructure in Kenya and Rwanda under its “Change the Story” initiative, helping reduce infrastructure barriers.
Image by tech trends
These examples show that device financing combined with policy incentives and infrastructure development creates an enabling environment for e-mobility.
Why Device Financing Matters for E-Mobility
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Reduces Upfront Cost Barriers
Many potential EV users can’t afford the high initial cost. Spreading payments (leasing or loans) de-risk purchase, making it feasible for more people. -
Increases Adoption Speed & Scale
When more people can afford EVs, demand rises. Higher volumes help drive down production/import costs over time, create economies of scale, and attract more investments into EV value chains. -
Improves Secondary Markets & Trade
As adoption grows, so does trade in EV components, charging equipment, and used EVs. This ties directly into AfCFTA’s goals of facilitating cross-border trade, removing tariffs, and harmonizing standards. -
Enhances Green Job Creation
More devices being financed and deployed requires jobs: assembly, maintenance, battery recycling, charging station installation. Financing spurs those opportunities. -
Supports Climate Goals & Sustainable Transport
Device financing makes it easier for public transport operators, moto-taxi riders, and small fleet owners to shift away from fossil fuels, reducing emissions and improving air quality.
How Device Financing Boosts AfCFTA
The African Continental Free Trade Area aims to boost intra-African trade, improve competitiveness, and foster local manufacturing. Device financing supports these objectives in several ways:
| AfCFTA Goal | How Device Financing Supports It |
|---|---|
| Promote cross-border trade & reduce trade barriers | Encourages import of EVs, parts, and equipment across African borders under favorable trade terms once manufacturers and importers are confident of market viability. |
| Facilitate value chain development | As demand increases, more localized manufacturing and assembly of EV parts, batteries, chargers will become profitable, pushing more countries to join the EV supply chain. |
| Increase Affordability for More Africans | Device financing spreads costs, making EV-related products affordable even if upfront pricing is higher due to import or manufacturing costs. |
| Regulatory harmonization & standards | For financing to work cross-border, standards and certifications (for batteries, chargers, safety) need alignment. Device financing initiatives often push stakeholders to harmonize these. |
Challenges & What Needs to be Done
Even with the promise, device financing faces hurdles:
- Risk Perception & Credit Access: Lenders often view EVs or e-mobility devices as risky (used assets, battery lifespan, resale value), making loan terms restrictive.
- Policy & Incentives: Government incentives (tax breaks, import duty waivers, VAT relief) are crucial. Rwanda’s example shows how tax incentives help reduce total cost of ownership.
- Infrastructure Gaps: Charging stations, battery-swap networks, stable electricity supply are essential. Financing devices without reliable infrastructure may fail to sustain adoption.
- After-Sales Services & Maintenance: For device financing to be credible, there must be assurance of maintenance, spare parts, battery replacement, etc.
What Can Be Done: Practical Recommendations
- Design device financing products aimed at specific segments (motorbike taxi operators, urban ride-hailing, and small fleet owners) with flexible repayment terms.
- Blend financing with incentives (tax incentives, subsidies) to make monthly payments more attractive.
- Support infrastructure investment — charging stations, swap stations, servicing, so financed devices are usable and maintainable.
- Build credit rating systems or fintech-based risk assessment tools for areas or users without traditional credit history.
- Encourage local manufacturing of EV components/chargers so costs fall over time, and AfCFTA goals are furthered.
Device financing is not just a financial tool—it’s a catalyst for Africa’s mobility revolution. By making EVs and electric mobility devices affordable, device financing accelerates adoption, creates green jobs, and drives trade across borders under AfCFTA. With Rwanda’s recent case studies, we see real traction. Now is the moment for governments, banks, and innovators to scale up device finance schemes to unlock Africa’s electric future.
