For many Rwandans, owning a vehicle is an investment in income, business and financial independence. As electric vehicles and motorcycles gain ground, however, the upfront cost of making the switch remains a major barrier for prospective owners.
LOLC Unguka Finance Plc is seeking to bridge that gap through its Tunga vehicle-financing portfolio, offering financing for electric, hybrid and conventional vehicles while supporting Rwanda's shift towards cleaner mobility.
"Rwanda is changing the way people move," said Justin Kagishiro, CEO at LOLC Unguka Finance.
He said financing is critical to accelerating the adoption of electric vehicles, particularly because their lower operating costs do not eliminate the challenge of the initial purchase price.
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"For many customers, the biggest barrier to owning an electric vehicle isn't the technology but the upfront cost. Even when an EV is cheaper to run over its lifetime, customers still need affordable, appropriate financing to acquire it in the first place," he said.
"That is where LOLC Unguka Finance comes in. Finance is the bridge that makes this eco-friendly transition possible," he added.
Financing the transition
Through Tunga, the company provides financing tailored to private vehicle owners, businesses, commercial taxi operators and motorcycle riders.
Tunga Iyawe finances electric, hybrid and conventional vehicles, including cars, SUVs, MPVs, trucks and buses, with financing of up to 90 per cent of the vehicle's value. Most passenger vehicles financed under the product are electric.
Tunga Taxi is designed for commercial taxi operators, with approximately 98 per cent of vehicles financed under the product being electric.
For motorcycle riders and entrepreneurs, Tunga Moto provides financing for electric motorcycles in partnership with Spiro.
"Together, these products let LOLC Unguka Finance support private owners, businesses, taxi operators and entrepreneurs alike," Lahiru Silva, Chief Business Officer, at LOLC Unguka Finance said.
The company has also waived processing fees on EV financing and allows customers to include insurance in the same financing facility.
"The goal is making the switch to electric mobility easier for the customer," he said.
Ensuring riders benefit from electric motorcycles
For commercial motorcycle riders, the economics of electric mobility can have a direct impact on take-home income.
"A petrol bike's running cost rises and falls with fuel prices; an electric one offers steadier, lower energy costs, which for a rider covering long distances daily can mean meaningfully more take-home income," he said.
Tunga Moto seeks to combine financing with the infrastructure needed to make electric motorcycles practical.
"Spiro is one of Rwanda's leading electric-motorcycle makers, pairing its bikes with battery-swapping infrastructure. LOLC Unguka Finance supplies the financing piece, connecting vehicle, energy infrastructure and customer into one practical path to ownership," he explained.
The model allows riders to acquire an income-generating asset while accessing battery-swapping infrastructure and other services needed to operate electric motorcycles.
Financing the taxi transition
Electric vehicles are also gaining ground in Rwanda's commercial taxi sector, where high daily mileage makes energy costs a major consideration.
Lahiru said almost all vehicles currently financed under Tunga Taxi are electric, reflecting growing demand among operators seeking to lower operating costs.
"The goal isn't just a greener vehicle but one that makes clear business sense," he said.
The company says EVs now account for 75 per cent of its vehicle financing, while 98 per cent of vehicles financed under Tunga Taxi are electric.
"These numbers show how central EVs have already become to LOLC Unguka Finance's core business, proof that commercial finance and sustainability can grow together, not compete," Lahiru said.
Building an EV financing ecosystem
LOLC Unguka Finance is working with vehicle and mobility partners including Spiro, Kason Motors, CEVR, Carin, Dream Cars,Uza, DX motors, Auto Hub, Auto 24 and Ingabo fix, alongside other traders and importers.
The partners provide vehicles, technology and after-sales services, while the finance company provides the funding that connects customers to the wider electric-mobility ecosystem.
The company says this is increasingly important as customers consider not only the vehicle, but also charging and battery-swapping infrastructure, maintenance and other services.
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Its branch network is also expected to help expand Tunga products beyond Kigali as awareness of electric mobility grows.
Beyond access to finance
Justin said the transition to electric mobility will depend on demonstrating that EVs are both environmentally beneficial and commercially viable.
For riders and taxi operators, lower energy costs can improve cash flow, while private owners can benefit from lower running costs over the vehicle's lifetime.
"It will take continued work from all sides, financing that reflects the true economics of EV ownership, a wider vehicle range and after-sales support, expanding charging and battery-swap infrastructure, and greater customer awareness," he said.
He said the shift will ultimately depend on showing customers that electric mobility makes economic sense as well as supporting Rwanda's environmental goals.
"We are innovating in green mobility financing as a microfinance institution that works with lower and middle-income customer segments in the country, that future is already moving," he said.
"LOLC Unguka Finance is helping customers move with it," he added.
