Bank of Kigali leads electric truck financing in commercial transport shift

Bank of Kigali (BK), Numa Logistics and Kabisa on June 12 launched a partnership to expand the use of electric trucks in commercial transport. The partnership aligns with Rwanda’s transition towards greener and more affordable mobility solutions amid rising fuel costs. So far, the partnership has enabled Numa Logistics to acquire 12 fully electric trucks supplied by KABISA, with Bank of Kigali financing 60 per cent of the investment while Numa Logistics contributed the remaining 40 percent. The fleet includes nine heavy-duty Frizon electric trucks, each capable of carrying up to 35 tonnes of cargo, and three BYD electric trucks with a carrying capacity of four tonnes each. Partners noted that the investment is among the largest commercial electric truck deployments in Rwanda to date and is expected to support freight transportation for agricultural products, business commodities and cross-border trade across East Africa. Strategic alignment and benefits Speaking during the launch, Alex Bizimana, Head of Agribusiness at Bank of Kigali, said the partnership aligns with Rwanda’s ambition to promote green mobility while addressing transportation challenges faced by farmers, individuals and businesses. According to Bizimana, the trucks will help move agricultural inputs such as fertilisers, seeds and supplements, as well as harvests from farms to markets more efficiently and at lower costs. “We wanted to contribute to affordable logistics for farmers and businesses while also supporting efforts to reduce harmful emissions in line with the government of Rwanda’s environmental goals,” he said. He explained that the partnership model brings together financing, technology and logistics expertise. Under the arrangement, KABISA supplies the electric trucks, Bank of Kigali provides financing support, and Numa Logistics operates the vehicles. Bizimana said the first phase of the project was financed through a 60-40 arrangement, with discussions already underway for future expansion. Beyond improving logistics services, the investment is expected to increase the use of clean energy in freight transport, reduce carbon emissions, improve supply chain efficiency and lower operating costs for businesses. Transport industry challenges and shift to electric mobility For Numa Logistics, the investment addresses a growing challenge facing the transport industry across Africa in particular the rising diesel costs and increasing operational expenses. Danny Collins, Chief Executive Officer of Numa Logistics, said many trucking companies continue to rely on diesel-powered fleets that have become increasingly expensive to operate. “Diesel prices continue to rise and fuel supply can sometimes be unpredictable. That creates risks for transport businesses and their customers,” Collins said. He noted that electric trucks offer a practical alternative because they can operate at significantly lower energy costs while maintaining the same performance levels as conventional trucks. According to Collins, Rwanda’s supportive electric mobility policies have helped create a favourable environment for investment in electric transport technologies. “The commercial case for electric vehicles is very strong. They make business sense and Rwanda has created policies that encourage investors to enter this sector,” he said. Collins observed that diesel trucks operating in Africa often experience significant wear and tear as well as engine-related problems after five or six years due to fuel quality and maintenance requirements. Electric trucks, he said, can remain operational for more than twice that period because they have fewer moving parts and do not rely on internal combustion engines. “The lifespan of electric vehicles is significantly longer. While batteries may eventually need replacement, the vehicles themselves can continue operating efficiently for many years,” he said. Collins also believes the long-term success of electric freight transport will depend on regional adoption. At the Rusumo border crossing between Rwanda and Tanzania alone, he said, approximately 600 trucks cross every day, illustrating the scale of regional freight movement. “Imagine if charging infrastructure existed across the entire transport corridor from Dar es Salaam to Kigali. The impact would be enormous,” Collins said. Kabisa’s role in electric mobility ecosystem The success of the project has also been supported by KABISA, a Kigali-based green energy company that is building an electric mobility ecosystem across East Africa. Pophia Muhoza, Managing Director of Kabisa, said the company was selected because it offers a complete ecosystem for electric mobility. “We do not only sell vehicles. We help clients source them, provide maintenance services, install charging infrastructure and support them throughout the entire journey,” she said. Muhoza indicated that the electric trucks have already been operating successfully in the country since April after being transported from suppliers through the Port of Dar es Salaam to Kigali. Kabisa has also tested the vehicles on longer regional journeys, including routes connecting Rwanda with Kenya, Tanzania, Zambia, Zimbabwe and Mozambique. “This project is already proving successful because the trucks have been operating for several months and delivering the expected results,” she said. To support future growth, Kabisa is investing in what it calls an “EV Highway” initiative aimed at connecting major transport corridors with high-capacity charging stations. The company plans to establish fast-charging infrastructure along key routes including Kigali–Dar es Salaam and Kigali–Mombasa. Muhoza said such infrastructure will be essential in encouraging more logistics companies to adopt electric trucks. The company is also working to establish electric vehicle hubs across East Africa where businesses can learn about electric mobility, access technical support and test vehicles before making investment decisions.

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Bank of Kigali leads electric truck financing in commercial transport shift