Moove, an African mobility fintech, has partnered with CFAO Motors, a department of CFAO Automotive, Africa’s largest automotive distribution network, to purchase over 5,000 brand-new, fuel-efficient Suzuki vehicles for its mobility entrepreneurs across Ghana and Nigeria.
With deliveries already commenced, the alliance marks a major breakthrough in bridging the continent’s gap of new vehicles.
Moove is firmly positioned to rapidly expand its fleet by leveraging CFAO’s local presence and extensive network to accelerate the delivery of brand-new vehicles to customers keen to start their entrepreneurial journey with the company.
Moove, the exclusive vehicle financing and vehicle supply partner for Uber in sub-Saharan Africa, has amassed more than 50% month-over-month growth since its launch.
Through its new agreement, the fintech will provide a range of Suzuki cars including the Alto, Swift, Celerio, Baleno, Dzire, and S-Presso models across Ghana and Nigeria to strengthen its drive to provide new, fuel-efficient vehicles across Africa at scale.
Pioneering vehicle ownership in Africa
Africa is home to the lowest per capita vehicle ownership rate in the world. Moove’s flexible Drive to Own product will provide prospective drivers with an invaluable opportunity to work towards owning the vehicles in 30, 36, or 48 months by paying a percentage of their weekly income and having the ability to access other financial services through the Moove app.
Speaking on the new partnership, Ladi Delano, Co-Founder and CEO of Moove, said “We’re especially proud to be working alongside the largest automotive distribution network in Africa and as a result of this, we’re now in an even stronger position to empower a new generation of successful and productive mobility entrepreneurs.”
Through its partnership with CFAO Motors, Moove can now provide cars to its customers more quickly, addressing the continued surge in demand from ride-hailing marketplaces.
Moove: Reducing vehicle emissions on African roads
To address the environmental concerns surrounding the automotive sector, Moove has also made a commitment to ensure at least 60% of vehicles it finances are EVs or hybrid models. The aim is to improve road safety and reduce vehicle emissions on Africa’s roads.
As a result of the agreement, Moove customers will also have access to after-sales support, including repairs and maintenance, enabling them to keep their vehicles in safe, top-quality condition for a longer lifespan.
According to Marc Hirschfeld, CEO of CFAO Automotive division, “Prospective Moove customers will get the most out of their investment as the vehicles are easy to service and maintain. Suzuki is a key vehicle manufacturer we supply at the domestic CFAO dealership in many countries across Africa.”
Co-founded in 2019 by serial entrepreneurs, Ladi Delano and Jide Odunsi, Moove is a mission-led company that’s committed to providing mobility entrepreneurs access to affordable vehicle financing and ensuring that 50% of its customers are women.
To date, Moove-financed cars have completed over 2.6 million trips with over 30 million kilometers traveled across 6 markets, including Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan.
In February 2022, Moove announced a $10 million financing from NBK Capital Partners, bringing its total funds raised to date to $78 million.
An overview of the state of new vehicles in Africa
Across Africa, domestic vehicle demand heavily outstrips local vehicle production, leaving millions of individuals and businesses largely dependent on imports to purchase new vehicles.
However, many of these imports are often old, second-hand vehicles with a report from the UN Environment Program stating that a quarter of vehicles imported by Nigeria, Africa’s largest economy, were almost 20 years old.
The aging lifespan of these vehicles makes them heavy contributors to air pollution on the continent, resulting in proposals from ECOWAS members to ban imports of cars older than five years and reinforcing the crucial role new, cleaner vehicles are set to play in Africa.
In Nigeria, between 2017 and 2020, a total of 42,166 new vehicles were sold, which is significantly less than the one-year sales volume 20 years earlier.
Equally, the situation is further compounded by comments from the country’s vice-president who stated that while annual vehicle demand totals 720,000 units, local production can only supply 14,000 units.
In Ghana, on average, 70% of all cars are imported and across the continent, local vehicle production in 2021 plummeted even further past its 38% decline between 2019 and 2020, making it even more challenging for Africans to access new vehicles.
Drivers can sign up to register their interest through Moove’s website. Before accessing the vehicles, however, all drivers must have their details assessed and verified by Moove as well as undergo training before vehicles are assigned.
