Following the signing of a partnership worth $10 million between the International Finance Corporation and Super app Gozem 6,000 moto-taxi drivers in the countries of Benin and Togo will now have access to vehicles financing
Because of this, moto-taxi drivers now have the opportunity to buy or rent electric bikes, with the end goal of increasing the amount of money they bring home.
Only gasoline-powered motorcycles are this vicinity’s most common form of public transportation. Through this partnership between IFC and Gozem, motorists will also learn about the advantages of riding electric motorcycles, which can significantly reduce carbon emissions.
Gozem said in a press release that there are an estimated 12 million moto-taxi drivers in the informal economy of Central and West Africa. Many motorists can’t get money for their cars from traditional banks or microfinance institutions. Rather, they borrow money from people who charge high-interest rates, often more than 70% per year.
Gozem is a super app that offers many services, such as transportation, e-commerce, and financial services. It has started many programs in French-speaking countries in Africa to help drivers get an education, make more money, and lower their operating costs.
It’s only been 14 months since it started helping its drivers get affordable car loans, and it has been able to assist more than 2,000 drivers buy cars.
Yates Francis Eteh, a moto-taxi driver in Lomé, Togo, says that Gozem has turned his life around. “Their app has made it easier for me to keep track of my money, which helped me eventually build my house.
They showed me a level of trust I have never experienced from anyone else by providing me with a loan to purchase two motorcycles. They have also allowed my wife to participate in the entrepreneurship program for women”.
According to Gregory Costamagna, co-founder and co-CEO of the company, estimates suggest that moto-taxi drivers in West and Central Africa require access to credit facilities for $3 billion per annum in funds to purchase their vehicles. “We are thrilled that IFC has placed their trust in Gozem to be responsible for providing affordable loans to these communities that have been historically underprivileged.”
Aliou Maiga, regional director at IFC, says, ” With our collaboration with Gozem, we will make it easier and cheaper for moto-taxi drivers to switch to electric motorcycles in a way that is good for the environment.”We hope that IFC’s investment in these underprivileged communities will spur other investors and expedite the reduction of poverty and carbon emissions in this business.”
Gozem is well-known as the best app in Francophone countries in Africa. It is used in 13 cities in Benin, Cameroon, Gabon and Gabon. Since it came on board in November 2018, one million people have signed up to use it, and 10 million trips have been taken.
The International Finance Corporation is World’s largest private sector development institution that focuses on the private sector in developing markets. It is a part of the World Bank Group. It operated in over one hundred countries and contributed a record 31.5 billion dollars to the previous year’s private businesses and financial institutions in developing nations.