- Loan Successfully Funded On 19 Sep 2024
Benin Electric Shift
Ehu Motors
- Cotonou, Benin
Menu
- 16,000 USD
Loan successfully funded
Motorcycles significantly contribute to GHG emissions and pollutants in West Africa. Beninese motorcycle taxi drivers, essential to the economy, suffer health issues from pollution. Transitioning to electric motorcycles will boost drivers’ incomes by lowering operating costs and reducing carbon emissions. Enthusiastic about this change, drivers need credit access to adopt electric motorcycles widely, fostering economic and environmental benefits.
- 4 Lenders
Committed
- 24 months
Loan Period
- 10%
Interest Rate
- BACKGROUND
Loan summary
Ehu Motors, founded in 2020, has developed electric motorcycles designed for Beninese taxi drivers, who are crucial to the economy but suffer from pollution-related health issues and high running costs. With motorcycle taxi associations expressing interest for over 2,000 preorders, there’s strong demand for these electric motorcycles, but financial assistance is needed to cover the initial cost for drivers. This loan supports Ehu Motors’ mission to promote sustainable economic and environmental change by providing affordable, eco-friendly transportation. It helps drivers increase their income and reduce pollution, enhancing community health and well-being.
Borrower's mission
Ehu Motors, founded in 2020, has focused on sustainable transportation for Beninese motorcycle taxi drivers, developing electric motorcycles through extensive local engagement and R&D. With motorcycle taxi associations expressing interest for over 2,000 preorders and a newly opened showroom, the company is driving cleaner, cost-effective transportation solutions.
Ehu Motors’ long-term ambitions include reducing emissions and improving public health by making electric motorcycles the norm for taxi drivers. They plan to scale production, expand regionally, and enhance economic and environmental sustainability in West Africa through affordable financing partnerships.
The activities funded by this loan are helping to achieve the above Sustainable Development Goals as defined by the UN.
Intermediary's experience with impact enterprises
RiA is a consultancy and virtual media platform raising awareness about Renewable Energy in Africa and across the World. For more than 7 years, RiA has been working with multiple companies in the sector, from large to smaller-size businesses. For any application from an impact enterprise for our support with finding capital, to ensure that a company is eligible for the best financing options available, we conduct a thorough 2-step due diligence process. This process requires the submission of several key documents and pieces of information, which help us assess the company’s financial health, operational structure, and overall credibility. Ehu Motors has gone through this process and we were fully satisfied with the outcomes.
- IMPACT
Impacts and how they are measured
Social and Economic impact: increased income for the drivers via reduced cooperating costs Electric motorcycles are cheaper to operate than non-electric ones. Taxi Drivers are on the road between 150 and 200 km every day. Given local electricity costs and the average distance travelled this translates into annual savings of around $973 – $1,298 per driver depending on where they charge their motorcycles, so an average annual saving of $1,135. In a country where the average annual income is $1,400 (based on Worlddata) and the minimum wage is $1,040, these savings are very significant. Impact measurement: number of motorcycles financed x $1,135 per annum Environmental impact: less carbon dioxide and zero tailpipe emissions Allowing for the whole supply chain, estimates indicate that an electric motorcycle emits 50-75 grams of Carbon dioxide per km (so an average of 65 grams) compared to about 100 grams for a non-electric equivalent model. No tailpipe emission for electric motorcycles compared to 0.15 to 0.4 grams per km for non-electric models (so an average of 22.5 grams). This will contribute to immediately improving the air quality as the number of taxi drivers transitioning to electric motorcycles increases. Impact measurement: • For Carbon dioxide reduction, 35 grams x number of motorcycles financed • For Nitrogen oxides reduction, 22.5 grams x number of motorcycle financed
Ready to lend?
This loan is not currently accepting subscriptions, but we invite you to check out some of the other live loans on the platform. In order to participate in loans you must be a registered lender on the LendForGood platform. If this is your first time lending with us we’ll guide you through the process to first get registered. Thank you for lending your passion!