U.S. International Development Finance Corporation and Eleving Group sign a letter of intent for a USD 10 mln loan

The seven-year loan will be made available for the Group’s subsidiary, Mogo Auto Limited (Mogo Kenya), to expand its electric vehicle financing portfolio and increase sustainable mobility alternatives for self-employed and SMEs in Kenya.

Facing climate change threats, the Kenyan government aims to reduce greenhouse gas emissions by 2030, focusing on zero-emission mobility. The transportation sector, which contributes 67% of energy-related CO2 and 11.3% of total emissions, supports many low-income microentrepreneurs lacking access to vehicle financing. Therefore, with this investment, the U.S. International Development Finance Corporation (DFC) and Eleving Group aim to positively impact Kenya’s development by offering essential zero-emission vehicle financing to individuals and businesses within the transportation sector.

“We recognize that the future mobility will be electric, and for this reason, green mobility has been the cornerstone of Eleving Group’s ESG strategy for several years now. Kenya is one of our markets where we are promoting such mobility through our electric motorcycle (e-boda) financing products, which are mainly targeted at SMEs and self-employed customers. The first quarter of 2024 has shown that e-mobility is increasingly becoming popular, and in the first three months, we have already provided financing for as many e-bodas as in the whole of last year. We are proud that Eleving Group and Mogo Kenya, together with DFC, will have the opportunity to accelerate this positive transition towards more sustainable commuting and are sure about the success of this cooperation,” comments Modestas Sudnius, the CEO of Eleving Group.

Mogo Kenya is a subsidiary of Eleving Group and one of the leading asset finance companies in the country. It focuses on financing motorcycles, e-bodas, tuk-tuks, and cars, which are essential tools for mobility and income generation.

“DFC is doubling down on its commitments to Kenya’s development, with investments into e-mobility and energy, among other sectors,” DFC CEO Scott Nathan said. “The U.S. and Kenya have strong ties that include a robust relationship with the private sector.”  

DFC is a federal agency and development finance institution of the U.S. government. DFC focuses on investing in development projects mainly in lower and middle-income countries, collaborating with the private sector to address some of the most pressing challenges in the developing world. Their investments span various sectors, including energy, healthcare, critical infrastructure, and technology. Additionally, DFC supports small businesses and women entrepreneurs to promote job creation in emerging markets. DFC ensures that its investments uphold high standards, respecting the environment, human rights, and worker rights.

More information: Arturs Cakars, Group’s Chief Corporate Affairs Officer, arturs.cakars@eleving.com