Context
Traditional motorcycle taxis (‘moto-taxis’) are the dominant form of affordable transport in Rwanda, comprising 50% of the vehicle fleet. Estimates suggest there are 110,000 motos (70,000 of which are moto-taxis) with roughly 30,000 operating in Kigali. The transport sector is a major source of greenhouse gas (GHG) emissions, and with road transport accounting for 98% of sector emissions, the rapid growth of the ICE-moto fleet poses significant environmental challenges. As of January 2025, the Government of Rwanda has banned the registration of new ICE-moto taxis in Kigali, signalling a clear trajectory toward national electrification. Despite this mandate, scaling remains difficult due to high upfront costs. With Kigali’s population growing by 3.2% annually, this project is critical: it provides the financial instruments, including both subsidies and credit guarantees, to bridge the affordability gap and ensure the market meets the government’s ambitious electric mobility goal. By de-risking investments and lowering barriers, the project is fundamental to scaling the e-mobility supply chain and ensuring a sustainable, rapid transition from polluting ICE-moto to electric 2-wheelers.
Approach to Transformational Change
The “Accelerating the deployment of e-motos in Rwanda” project drives large-scale e-mobility adoption, combining GHG reduction with vital development co-benefits. It seeks to activate the e-moto market by increasing the supply of e-motos and charging stations and cultivating e-moto demand and access to finance. The project is co-implemented by two national institutions: the Rwanda Green Fund, hosting the E-Moto Technical Hub and Rebate Scheme, and the Development Bank of Rwanda (BRD), hosting the Credit Enhancement Facility and Partnership Group. Their leadership ensures local ownership and long-term sustainability. They are both supported by GlobalDF (financial advisory) and ICLEI Africa (technical expertise), together advancing a green economy through innovative financial instruments, public-private consultation, and policy alignment.
Components and support mechanisms
The project addresses systemic barriers through integrated financial mechanisms. The Rwanda Green Fund deploys a EUR 1.4 million E-Moto Rebate Scheme, providing targeted subsidies covering up to 30% of asset costs to low-income and female operators to ensure equitable access. To unlock commercial finance, the BRD manages an EUR 8.3 million first-loss Credit Enhancement Facility, de-risking loans from commercial banks to both local EV manufacturers and asset financiers. The E-Moto Partnership Group facilitates essential coordination between the public and private sectors to mobilize additional funding and risk mitigation. Beyond financing, the project drives transformative impact through improved battery waste management, increased female participation across the e-mobility value chain (as operators, riders, and employees), and the advancement of national standards and policies to ensure nationwide replication.
Long-term impact
The project aims to deploy 64,755 electric motorcycles by its conclusion, fundamentally shifting Rwanda’s transport sector toward zero-emission mobility. This transition will deliver significant climate benefits, with total projected direct emission reductions exceeding 777,000 tCO2e and indirect reductions surpassing 52,000 tCO2e. By displacing ICE-motos, the project provides a scalable model for reducing national GHG emissions while enhancing the long-term economic resilience of the Rwandan transport workforce.
