Relatedly, financial institutions seem to be keeping pace with the rate of innovations in the green space, and billions are being channeled into asset financing for EV solutions. The latest story is the Boda-Boda EV market, and Absa Bank has today announced a UGX 19 billion loan facility in a partnership that will enable first-time owners and existing operators to acquire these assets.
Financing Uganda’s EV Transition
As Uganda pushes toward a more sustainable future, access to capital remains a key challenge. Absa Bank’s UGX 19 billion loan initiative is a significant step in accelerating electric vehicle (EV) adoption, particularly among low-income earners and small business operators.
Support for Boda-Boda Sector
The facility targets both new and existing boda-boda riders, many of whom face barriers when trying to transition from petrol-powered motorcycles to electric models. With flexible repayment terms, the program aims to make EV ownership more accessible and financially viable.
Promoting Green Mobility
This move aligns with Uganda’s broader climate goals, including reducing carbon emissions, improving air quality in urban centers, and fostering innovation in the transportation sector. EVs are seen as a sustainable solution to the country’s growing urban mobility needs.
Bank-Fintech Partnerships
Absa’s financing model is being rolled out in partnership with local EV companies and fintech platforms, providing an ecosystem of support that includes rider training, insurance, and maintenance. This model also ensures that the loan facility translates into long-term value for both riders and the environment.
Sustainable Urban Transport
As more banks and financial institutions recognize the potential of green transport, Uganda is likely to see rapid transformation in how mobility services are structured and financed. The Absa initiative is a promising example of how inclusive financing can drive environmental and economic impact.
