Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Digital Inclusion

Gozem, IFC partner on $10M moto-taxi financing project

Article Image
Ride-hailing app Gozem and the International Finance Corporation (IFC) are embarking on a $10 million project to help motorcycle-taxi (moto-taxi) drivers in Togo and Benin access affordable vehicle financing.

Gozem said there are around 12 million moto-taxi drivers in West and Central Africa that operate in a mostly informal economy. Most moto-taxi drivers do not have access to traditional banks and micro-finance institutions to fund their vehicles and instead often rely on money lenders that charge higher interest rates, often above 70% annually.

Launched in Lomé, Togo in 2018, Gozem began as a single moto-taxi ride-hailing service and has since evolved into a self-proclaimed "super app" with a portfolio of services that includes transport of passengers and goods, e-commerce and food delivery, financing, and plans for digital banking.

Gozem began providing vehicle financing to its drivers 14 months ago and has now helped more than 2,000 drivers acquire vehicles with affordable financing, it said in an emailed statement.

Through this partnership, the two groups will finance new vehicles for 6,000 drivers and build a platform that will enable Gozem to finance millions more.

"Moto-taxi drivers in West and Central Africa will need access to $3 billion of credit facilities annually to finance the replacement of their vehicles," said Gregory Costamagna, co-founder and co-CEO of Gozem.

Renewable rides

Over the next 12 months, Gozem and IFC will also work together to test electric bikes in moto-taxi operating conditions and build a green battery swapping station network in Togo and Benin.

The project aims to validate that electric bikes are a suitable replacement for the current petrol bikes and that their adoption at scale will not only be good for the environment but will also help drivers save money through lower energy and maintenance costs.

"Electric vehicles have the power to transform the moto-taxi market in West and Central Africa by lowering carbon emissions and lowering operating costs for drivers. By working with Gozem, we will increase affordable and green financing solutions for moto-taxi drivers to shift to electric bikes", said Aliou Maiga, IFC’s regional director for West and Central Africa.

"We hope IFC’s investment for these underserved communities will encourage other investors and accelerate the reduction of poverty and greenhouse gasses emissions in these markets," Maiga added.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.

Gozem raised $5 million in a Series A round in December 2021, helping boost plans for expansion and bringing its total raised to date to $12 million.

The company currently operates in 13 cities across Togo, Benin, Gabon and Cameroon with more than 1 million registered users who have completed over 10 million trips since its launch in November 2018.

Related posts:

*Top image is of Gozem moto-taxi drivers. (Source: Gozem).

— The Staff, Connecting Africa

Innovation hub

Story

MTN tackles SA power woes with wind & solar hybrid project

MTN South Africa has launched an integrated wind and solar renewable energy generation project as part of its Net Zero efforts.

Video

Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up