Equity Bank Rwanda and China Electric Vehicle Rwanda (CEVR) have launched a partnership aimed at easing access to electric vehicles through financing, in a move expected to support the country’s green transport ambitions.

Coming at a time when fuel prices are rising and Rwanda is intensifying efforts to curb emissions, including through carbon market initiatives, the Memorandum of Understanding (MoU) was signed on Tuesday, March 24, at the CEVR showroom in Nyarutarama.

It brings together vehicle supply and financing under a single arrangement to help individuals and businesses acquire electric cars through loans.

Partnership targets affordability barrier in EV adoption

During the launch, Eric Rutabana, Commercial Director at Equity Bank Rwanda, said the agreement is designed to address affordability, which has remained a key barrier to electric vehicle uptake.

"The MoU helps people who are interested in acquiring electric vehicles to access financing from Equity Bank,” he said.

He added that the arrangement is expected to benefit both parties by increasing vehicle sales for CEVR while enabling customers who would otherwise struggle to afford the cars to access them through credit.

Rutabana said electric vehicles are often perceived as expensive compared to fuel-powered cars, but the financing model introduced under the partnership is meant to ease that burden.

"The partnership helps to overcome the affordability challenge. These vehicles, being electric, also support the government’s ambition to build a green economy,” he said, noting that wider adoption could help reduce carbon emissions.

Loan structure and eligibility framework

Under the arrangement, customers can either approach Equity Bank Rwanda directly for financing or begin the process through CEVR, with the two institutions working closely to assess eligibility and complete the purchase.

"You can go to either CEVR or Equity Bank to access the vehicle,” Rutabana said.

He noted that interest rates under the scheme will not exceed 16 per cent, describing this as competitive for customers seeking vehicle loans. Repayment periods will extend up to six years.

Rutabana said access to the loans will be open to a wide range of clients, including salaried individuals, taxi operators, and businesses seeking commercial vehicles.

"What we do is determine affordability based on sources of income and then help you acquire the kind of vehicle that suits your personal or business needs,” he said.

CEVR: Faster acquisition and flexible financing

Mary Bakamurera, Managing Director of China Electric Vehicle Rwanda, said the partnership is expected to speed up the process of acquiring vehicles, which has often been delayed by lengthy loan approval procedures.

"This is to help individuals and business owners own an electric vehicle more quickly,” she said.

Bakamurera stated that some potential buyers had previously been discouraged by the time it takes to secure financing, during which desired vehicles could be sold out.

"In most cases, clients find that vehicles are sold out while they are still processing loans. This partnership will help make the process much faster,” she said.

She added that the agreement will offer clients more flexible and favourable financing options, making electric vehicles more accessible.

According to Bakamurera, vehicle prices at CEVR start from Rwf25 million, with all models covered under the financing arrangement.

She said while CEVR handles vehicle sales, maintenance, and charging infrastructure, the bank assesses clients’ financial capacity.

"To own a vehicle, you need to show that you can afford it. If you are employed, you need proof of income, and if you run a business, you present your transactions so that we understand your performance and advise on a suitable vehicle,” she said.

Bakamurera said the company expects increased demand following the partnership, as more people who were previously unable to afford electric vehicles are likely to take up the offer.

"We expect to see more people coming to us – people who were interested but could not afford before. Now, with the support from Equity Bank, they can own these vehicles,” she said.

Drivers share experience on EV efficiency and value

Emmy Nsengiyumva, a 50-year-old driver in Kigali with four years’ experience in transport, including one year using electric vehicles, said the difference between electric and fuel-powered cars is significant.

"There is a very big difference because these cars are economical in terms of fueling and maintenance,” he said.

"It is a very good car in terms of saving money and comfort. It is also a beautiful car.”

Nsengiyumva observed that despite perceptions that electric vehicles are expensive, they can still offer value for money.

"The car is reasonably priced. My current vehicle cost about Rwf33 million when it was brand new in 2025, and it is difficult to find a comparable second-hand European fuel-powered car manufactured in the same year at that price,” he said.

He added that electric vehicles come with added benefits, including warranty coverage, making them a reliable option for buyers.

"When you have this car, you have a guarantee of five years,” he said.

Nsengiyumva welcomed the role of financial institutions in making such vehicles more accessible, urging others to follow similar initiatives.

"I can say financial institutions should follow the example of Equity Bank to help people buy these cars. It will help develop our future,” he said, noting that easier access to financing could improve livelihoods.

Business users highlight cost savings and long-term benefits

Oleg Stenbock, a business operator in Kigali, also highlighted the cost advantages of electric vehicles compared to petrol- or diesel-powered cars.

"The difference is really huge,” he said, explaining that charging an electric vehicle is far cheaper than fueling a conventional one.

"Fueling a car that can travel 500 kilometres can cost between Rwf200,000 and Rwf300,000, but charging an electric vehicle for the same distance costs about Rwf12,000,” he said.

According to Stenbock, this translates into substantial weekly savings for frequent drivers.

"If you drive a lot, you may spend about Rwf12,000 per week on charging, which shows how significant the savings are,” he said.

He acknowledged that electric vehicles remain relatively expensive, partly because they are still new to the Rwandan market, but said improved access to financing could address this challenge.

"The important thing is improving access to financing. It is better to pay for a vehicle over time than to pay in cash,” he said.

"This Equity Bank initiative is timely.”

Stenbock added that beyond energy savings, maintenance costs are also much lower for electric vehicles.

"An electric vehicle consumes less than 10 per cent of what a fuel-powered car uses. You can save about 90 per cent on energy costs, and maintenance is also cheaper because there is no need for oil changes,” he said.

"For example, a new electric car can cost around Rwf50 million, which is similar to the price of a non-electric vehicle like a Toyota RAV4,” he said.