Rwanda is advancing its transition to electric mobility through two complementary financial mechanisms designed to unlock investment and make electric motorcycles (e-motos) more accessible. Implemented by the Rwanda Green Fund (RGF) and the Development Bank of Rwanda (BRD), the Rwanda – E-mobility project introduces decentralised financing approaches to expand market supply and drive uptake at scale.
“At BRD, we firmly believe that green initiatives and economic growth are two sides of the same coin. We are not just financing vehicles; we are structuring a completely new financial ecosystem that can unlock large-scale climate finance and support sustainable development.”
– Innocent Gatete, Director at BRD’s Special Projects Unit
Unlocking supply and demand through targeted finance
At the core of the project are two mechanisms addressing key market barriers:
- On the demand side, RGF is rolling out a EUR 1.4 million rebate scheme to improve affordability for riders who would otherwise be unable to purchase e-motos. By lowering upfront costs, the scheme aims to accelerate adoption, particularly among low-income users.
- On the supply side, BRD is deploying an innovative finance support facility for e-moto companies and asset financiers. This includes the E-Moto Credit Enhancement Facility, backed by a EUR 8.3 million first-loss guarantee, which reduces investment risk and helps unlock financing for early-stage transactions. Complementing this, a dedicated Finance Advisory Team supports stakeholders in structuring bankable proposals using proven financial instruments and credit enhancement approaches.
“What Rwanda is building [in the E-Moto project] is a practical pathway for commercial banks to engage with climate and mobility transitions. This kind of structure helps bridge the gap between innovation-stage companies and mainstream financial institutions.”
– Patrik Huber, Finance Advisor, Ampersand
Building the foundation in Implementation Phase 1
“Access to finance is often the bridge between good ideas and scalable solutions. A transition is only successful if people can actually participate in it, and this project is creating mechanisms that allow more people to do exactly that.”
– Tokam Ulrich Cabrel, Advisor at the Technical Support Unit to the Mitigation Action Facility
During its Implementation Phase 1, the project established the institutional, technical, and financial groundwork required to operationalize both mechanisms. Key milestones included extensive stakeholder engagement and formal endorsement from major national partners, including MININFRA, RURA, the City of Kigali, the Ministry of Environment, and Enviroserve. The establishment of an E-Moto Technical Hub further strengthened coordination and market development efforts.
Significant progress was also made in preparing the financial instruments. The Credit Enhancement Facility was designed and operationalized, supported by trained advisory staff, an operational manual, and scoring tools. Early market interest was secured through letters of intent from financial institutions such as Bank of Kigali, I&M Bank Rwanda, Equity Bank Rwanda, BK Capital, and GuarantCo, alongside the development of a EUR 153 million transaction pipeline.
In parallel, the rebate scheme was brought to implementation readiness. This included benchmarking international models, developing eligibility criteria, training staff, and designing a digital platform to ensure transparent and efficient delivery.
“Currently, less than 1% of the e-moto taxi market is made up of women. As part of the project’s objectives, we want to increase the participation of women riders so that we improve income potential as well as gender equity and equality within the sector. We are not only looking at riders, but at the entire supply chain – management, charging stations, sales, marketing, and financing.”
– Tony Shyaka, Rwanda – E-Mobility project manager, RGF
Scaling impact in Implementation Phase 2
Building on this foundation, Implementation Phase 2 (February 2026 to June 2030) will scale up both mechanisms to accelerate e-moto deployment nationwide. The approach combines financial incentives, technical assistance, and market development to improve access to finance and stimulate demand.
“We are using proven structured finance techniques to unlock commercial finance. We want to build bankable companies and reduce the risks lenders currently see in the sector so that commercial finance can participate more confidently.”
– Emmanuel Gashagaza, E-Mobility Project coordinator at BRD’s E-Moto Finance Advisory Team
The Credit Enhancement Facility and Finance Advisory Team will focus on structuring lease- and loan-based transactions, using standardised financial models and tools to improve investment quality and reduce risk. The mechanism is expected to mobilise EUR 40 million by the end of 2026 and EUR 196.2 million by 2030, leveraging the Mitigation Action Facility’s grant more than elevenfold.
At the same time, the rebate scheme will expand to reach a wider group of users, including women and current operators of fuel-powered motorcycles. Delivered through asset financiers and managed via an online system, the scheme aims to distribute 1,150 rebates by 2026 and 9,000 by 2030, with at least 10 percent allocated to women.
Together, these mechanisms position Rwanda as a frontrunner in leveraging public finance to catalyse private investment in electric mobility, while ensuring that the transition remains inclusive and scalable.
“For years, people have talked about the lack of bankable projects. What is revolutionary here is that BRD has created a finance advisory team that works up front to make projects bankable. That changes the conversation from theory to implementation.”
– Dr. Barbara Samuels, Executive Director at Global Clearinghouse for Development Finance (GlobalDF)
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