World Bank approves $200m loan for Benin mobility project

From the newsletter

Benin will receive a $200 million loan from the World Bank to develop a clean urban transport system. The project will develop a completely new public transport network, aiming to serve 360,000 daily passengers. It will promote low-emission commuting through the introduction of electric motorcycles, electric buses and electric boats, said the Bank. 

• Benin has one of the lowest numbers of EVs in Africa. In 2024, it imported only 17 units from China, the world’s largest EV manufacturer, and only 12 in the previous year. Almost all of Benin’s more than half a million vehicles use fuel. The World Bank’s lending will increase the share of EVs.

• The transition to electric mobility in Africa is mainly led by the private sector. However, lending from DFIs like the World Bank is helping to accelerate the adoption of EVs. Since 2016, the World Bank has committed more than $2.3 billion globally to transport projects that include electric mobility.

More details

• The project is based in the Grand Nokoué area, which is home to 2.8 million people. It is expected to support the net creation of 17,000 jobs through fleet renewal and the development of the e-mobility ecosystem, 800 formal jobs in public transport services, and an additional 1,000 jobs during infrastructure construction. It is not yet clear whether the EVs for the project will be purchased directly by the Benin government or through private stakeholders. 

• "The rapid urbanisation of the towns of Grand Nokoué poses real challenges to urban mobility and makes residents increasingly vulnerable to climate shocks and poverty. This financing will not only unlock the region's economic potential and improve productivity, but also strengthen social inclusion and environmental sustainability," said Nestor Coffi, World Bank Country Manager for Benin.

• Benin has a population of 14 million, but its EV adoption rate is low. There are fewer than 1,000 EVs in the country. Motorcycles are the most common form of transportation, which presents an opportunity for electric motorcycles. Benin was one of the first markets of Spiro, currently Africa’s largest electric motorcycle company.

• The West African country is actively promoting electric vehicles with policies aimed at making them more accessible and affordable, particularly for motorcyclists. The government has eliminated VAT and customs duties on 100% electric vehicles to accelerate the transition to a greener economy.

• Benin remains a poor country, with 40% of the population living below the poverty line. It means many people would struggle to afford EVs, given the cost. While the availability of consumer financing is low, some capital has started to come in. In 2023, UK-based lender GuarantCo provided $63 million to finance electric motorcycles in Benin and Togo.

• The local EV industry remains tiny, but there is potential for growth, attracting a number of EV companies. Chinese EV giant BYD launched in the country in May 2025, introducing its Atto 3 and Dolphin model cars. In the electric motorcycles segment, Spiro and Ehu Mobility are the market leaders.  

Our take

• Given Benin’s reliance on motorcycles for transportation and the government’s tax incentives, electric motorcycles will likely dominate the EV transition. This creates an opportunity for companies such as Spiro and Ehu Motors to expand operations within the country, potentially introducing financing solutions to make purchases more affordable.

• With the World Bank’s backing and market entry by players such as BYD, private investors and manufacturers will see Benin as an emerging EV market. Local partnerships and franchise deals could be next, especially for public transport solutions.

• Since affordability remains a major barrier to adoption, there is an opportunity for asset financiers to enter the market to provide loans or leasing options for electric motorcycles and buses. This is succeeding in markets across Africa and plays a key role in increasing EV sales.