Asaak finances 2,000 electric motorcycles

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Ugandan asset finance company Asaak has financed 2,000 electric motorcycles in just four months, highlighting the increased demand in one of Africa’s top EV markets. Asaak was founded in 2016 and offers motorbike financing to operators, who are often locked out by formal banking institutions due to stringent security requirements and regular account activity. 

• The vast majority of electric bikes in Africa are financed. This has made it necessary for manufacturers to partner with financiers like banks, asset lenders and saccos to enable buyers to access credit, without which sales would be minimal. 

• The cost of credit, especially from asset financiers, is extremely high due to the perceived high-risk nature of their customers. Industry experts however say this will come down as EVs are easier to track and shut off remotely, lowering credit loss risk. 

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