The International Finance Corporation (IFC), a sister organization of the World Bank and member of the World Bank Group is financing Moove, with $20 million to boost urban mobility and drive growth in Nigeria’s megacity, Lagos.
A new partnership between IFC and Moove will improve urban mobility and ease heavy congestion in Nigeria’s megacity, Lagos, helping to drive sustainable and inclusive economic growth in the metropolis.
Moove is an African mobility financial technology firm that provides vehicle financing to mobility entrepreneurs across the continent and is Uber’s exclusive vehicle financing and vehicle supply partner in sub-Saharan Africa.
IFC’s $20 million financing package to Moove includes an up to $10 million loan from its own account and $10 million mobilized from partners under the Managed Co-Lending Portfolio Program (MCPP).
The funding will enable Moove to add up to 1,400 new cars to its fleet, including a pilot fleet of hybrid cars, to support the roll-out of more energy-efficient vehicles on e-hailing platforms. The financing comes on the back of Moove’s recent Series A, which raised $23 million to fuel growth and expansion into new markets and products. This brings Moove’s total funding raised to $68.2 million, comprising $28.2 million equity and $40 million debt.
“IFC’s financing will support our efforts to revolutionize e-hailing in Lagos by rolling out new energy-efficient vehicles and will help us in achieving our vision to democratize vehicle ownership, empowering a new generation of mobility entrepreneurs, in particular women, by offering them greater flexibility and transparency,” said Ladi Delano, co-founder and CEO of Moove.
Ride-hailing platforms in Nigeria have struggled to meet growing demand from users because of limited access to vehicle financing to support increased car ownership. Car ownership in the country is less than 20 cars per 1,000 people, compared to over 120 per 1,000 people in South Africa. The additional cars added to Moove’s fleet will enable an estimated four million passenger trips per year in Lagos.
The investment is part of IFC’s, and the World Bank Group’s, strategies to promote diversified, inclusive growth and job creation in Nigeria and support the development of the country’s transport sector. The limited expansion of public transport as urban populations grow is a major constraint to economic activity, and the private sector will be key to meeting the additional demand.
“Our partnership with Moove reiterates our commitment to spur economic growth in Nigeria by creating new opportunities and inclusive jobs, especially as the country recovers from the devastating impact of the COVID-19 pandemic,” said Kalim M. Shah, IFC’s Senior Country Manager for Nigeria. “It will also help Nigeria meet its climate aspirations by introducing more fuel-efficient vehicles to meet the growing transportation needs of its population.”
IFC’s focus in Nigeria includes nurturing the country’s expanding digital economy, helping to narrow the infrastructure gap, supporting entrepreneurship, and boosting access to finance for smaller businesses and women entrepreneurs. IFC has supported Nigeria throughout the pandemic, deploying up to $200 million of its COVID-19 fast-track global financing facility to several financial institutions to help them increase lending to small businesses.