Watu Africa drives EV revolution in East Africa with 40% financing

Watu Africa, an asset financing company making waves in East Africa, is at the forefront of the electric vehicle (EV) revolution, with a notable 40% of their financing dedicated to EV mobility alone. In a recent interview with CNBC Africa, Andrii Volokha, the East Africa General Manager, shed light on the company's mission to empower African entrepreneurs and bridge the financial inclusion gap. With over 120,000 assets in Kenya alone, Watu Africa has been offering tailored financial solutions to various industry segments, from boda boda riders to electric vehicle operators over the past nine years. Volokha emphasized the impact of their financing solutions on local economies, highlighting how one boda boda rider could support at least four to five people, thereby promoting financial inclusion within their communities. Watu Africa aims to simplify access to capital by offering a straightforward process for obtaining assets, requiring minimal documentation and providing quick asset acquisition within two hours. The company's commitment to reducing their carbon footprint and promoting sustainable mobility has led to significant investments in the EV market. With more than 2,500 EV bikes financed across East Africa to date, Watu Africa plans to finance over 10,000 bikes by the end of 2024, with a vision to have half a million EV bikes on the road by 2030. They have already injected 1.3 billion into accelerating the transformation of EVs in Kenya alone. In terms of financial expectations and returns, Watu Africa's projections vary across the African countries they operate in. Strategic partnerships, such as the one with Gogo Electric in Uganda, have played a pivotal role in driving the growth of the EV market in specific regions. By providing loans and fostering sustainable growth, the company aims to contribute to the expansion of the EV industry in these countries. Navigating the diverse policy landscapes and regulatory frameworks in African countries, Watu Africa collaborates with industry players to advocate for incentives that encourage EV adoption. These incentives range from tax relief for EV assets to support for EV swapping stations, facilitating the growth of the EV market across the continent. Addressing critical aspects like insurance, asset tracking, and security, Watu Africa ensures the safety and protection of EV assets and riders. By equipping their bikes with GPS trackers and implementing secure swapping models, the company mitigates risks and enhances overall safety on the roads. In countries like Uganda where Watu Africa has financed over a thousand bikes, there have been no reported theft cases, underscoring the effectiveness of their security measures. Looking ahead, Watu Africa remains dedicated to leveraging technology to drive innovation and expand their offerings. With a focus on smartphone financing to enhance access to digital tools and connectivity, the company aims to foster job creation, promote digital literacy, and facilitate economic growth in the region. Smartphones are seen as a key catalyst for enabling individuals to access social media, e-learning, and participate in trade activities. With a robust commitment to sustainable mobility, financial inclusion, and technological advancement, Watu Africa is poised to continue driving the EV revolution in East Africa and beyond, empowering entrepreneurs and transforming communities.