Absa Bank Uganda has announced a landmark UGX 19 billion loan facility to Mogo Loans, aimed at transforming Uganda’s informal economy by promoting affordable electric bikes for commercial riders.
The partnership, signed in September 2024, will enable Mogo Loans to provide hire-purchase financing to ‘boda boda’ operators, empowering hundreds to own environmentally friendly electric bikes.
According to David Wandera, Absa Bank Uganda’s Executive Director and Head of Markets, this deal underscores the bank’s commitment to supporting a low-carbon economy and financial inclusion.
“This partnership goes beyond a typical loan transaction. We’re driving financial inclusion, delivering credit to the last mile, and contributing to a green economy,” Wandera said.
Mogo Uganda CEO, Mikhail Vydryn, highlighted the company’s impact, having financed 870 e-boda units, reducing CO₂ emissions by approximately 70 tonnes and creating economic benefits for riders.
The electric bikes offer significant cost savings, with charging costs at UGX 8,000 for 80 kilometers, compared to UGX 10,000 for 70 kilometers for fossil fuel bikes.
With this financing, Mogo Uganda projects reaching 1000 electric motorbikes issued through hire-purchase arrangements by November 2024, easing financial burdens on informal operators.