How Mogo Uganda is bridging the EV ecosystem access gap

KAMPALA, UGANDA — A quiet revolution is underway in Kampala’s bustling streets. Boda boda riders, the backbone of Uganda’s informal economy, are increasingly switching from petrol-powered motorcycles to electric vehicles. MOGO Uganda, a pioneering fintech company, is at the forefront of this shift.

In just one year, MOGO has issued 1,500 electric vehicle loans, empowering riders and transforming Uganda’s transport landscape. MOGO Uganda, an integral part of the international FinTech entity Eleving Group, has strategically positioned itself by rendering electric motorcycles affordable for boda boda operators, a demographic often encumbered by substantial financial impediments.

Through astute collaborations with prominent EV manufacturers such as Zembo, Spiro, and eBee, MOGO offers bespoke financing solutions that make advanced electric bikes—including models like the Zembo Thunder and Spiro Ekon—readily attainable.

These alliances transcend mere commercial arrangements; they represent a crucial conduit to a more environmentally sound and inclusive future. Without MOGO’s pioneering financial models, the rapid advancements observed within Uganda’s e-mobility ecosystem would simply not be feasible.

Consider the case of Bashir Mutumba, a Kampala-based boda boda rider. Previously, he grappled with the escalating fuel and maintenance expenditures of his petrol-powered motorcycle. However, after securing an electric bike loan from MOGO with a modest down payment of UGX 600,000 and manageable weekly installments of UGX 77,000, Bashir now reports a threefold increase in his daily earnings.

The electric bike’s significantly lower running costs—approximately UGX 8,000 for 80 kilometers compared to UGX 10,000 for 70 kilometers on a petrol equivalent—have profoundly improved his economic standing.

Such narratives of transformative impact are proliferating, underpinned by MOGO’s unwavering dedication to financial inclusion. MOGO’s financing framework has been meticulously crafted with Uganda’s informal sector dynamics in mind.

Loan applications are processed with remarkable efficiency, typically within 24 hours, and flexible credit assessments are implemented to accommodate riders from diverse financial backgrounds.

To mitigate concerns regarding theft—a pervasive worry for riders—MOGO integrates GPS tracking devices into the bikes, affording riders peace of mind as they fulfill their loan obligations over periods ranging from 18 to 30 months.

This emphasis on accessibility has cemented MOGO’s preeminence as Uganda’s largest EV financier, facilitating over 2.5 million kilometers of travel on clean energy.

A significant milestone for MOGO was achieved in September 2024, when it secured a UGX 19 billion loan facility from Absa Bank Uganda.

This strategic partnership has considerably bolstered MOGO’s capacity to scale EV financing, with an initial tranche of UGX 5 billion already disbursed.

These funds are specifically earmarked for boda boda operators, aligning seamlessly with Uganda’s national objective, outlined by the World Bank, to reduce the informal sector’s contribution to the economy from 51% to 45% by 2025.

By offering loans denominated in local currency, MOGO further insulates riders from the volatility of foreign exchange risks, thereby enhancing the predictability and sustainability of their financing.

This influence extends beyond mere economic metrics; it is a catalyst for substantial environmental change. According to the United Nations Environment Programme (UNEP), Uganda’s transport sector is responsible for approximately 50% of the nation’s energy-related greenhouse gas emissions.

In this context, electric bikes, with their zero tailpipe emissions, represent a paradigm shift.

This financing initiatives are in direct support of UNEP’s Global Electric Mobility Programme, which actively champions Uganda’s e-mobility agenda.

Through collaborations with Zembo, Spiro, and eBee, MOGO ensures that riders have access to dependable, locally appropriate electric bikes, thereby contributing to a tangible reduction in noise and air pollution across urban centers like Kampala.

MOGO’s leadership was prominently showcased during the E-Mobility Parade, an event orchestrated by the Science, Technology, and Innovation (STI) Secretariat in anticipation of the National Science and Technology Week in 2024.

The parade served as a vibrant display of Uganda’s burgeoning EV ecosystem, with MOGO proudly affirming its pivotal role as the nation’s foremost EV financier.

The event underscored MOGO’s unwavering commitment to innovation and sustainability, rallying key stakeholders to accelerate the adoption of electric mobility.

Nonetheless, challenges persist. Despite the implementation of GPS tracking, theft risks remain a concern, and riders must navigate loan repayments in the unfortunate event of a stolen bike.

The expansion of charging infrastructure is imperative to support widespread EV adoption.