Moove, an African mobility fintech, has partnered with CFAO Motors to purchase over 5,000 brand-new, fuel-efficient Suzuki vehicles for mobility entrepreneurs across Ghana and Nigeria.
Africa’s domestic vehicle demand heavily outstrips local vehicle production. This leaves millions of individuals and businesses largely dependent on imports to purchase vehicles. Most of these imports are often old, second-hand vehicles. A report from the UN Environment Programme started that a quarter of vehicles imported by Nigeria, Africa’s largest economy, were almost 20 years old.
The ageing lifespan of these vehicles makes them heavy contributors to air pollution on the continent. This resulted in a series of proposals from ECOWAS members to ban imports of cars older than five years.
In Nigeria, between 2017 to 2020 a total of 42,166 new vehicles were sold, which is significantly less than the one-year sales volume 20 years earlier. The situation was further exacerbated by comments from Nigeria’s vice-president who stated that whilst annual vehicle demand totals 720,000 units, local production can only supply 14,000 units.
In Ghana, an average of 70% of cars are imported. 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. This problem is what the partnership between Moove and CFAO seeks to solve.
The partnership, which will leverage CFAO’s local network and extensive presence, will allow the rapid delivery of brand new vehicles that are more environmental friendly. It will deliver a new gateway to vehicle ownership for drivers across the two countries.
With deliveries already commenced, the alliance marks a major breakthrough in bridging the continent's gap for new vehicles. Moove is positioned to rapidly expand its fleet, leveraging CFAO’s local presence and extensive network to increase the delivery of brand-new vehicles to customers keen on starting 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 launch.
Through its new agreement, it will now 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.
Speaking on the new partnership, Ladi Delano, Co-Founder and CEO of Moove, comments, "Since our launch in July 2020, we've found tremendous traction across all of our markets and as we enter a new phase of growth, the importance of a local, pan-African supplier such as CFAO who can equip us to quickly respond to the needs of our customers simply can't be understated.
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 provide cars to its customers more quickly, addressing the continued surge in demand from ride-hailing marketplaces. To address the environmental concerns surrounding the automotive sector, Moove also made a commitment to ensure at least 60% of vehicles it finances are EVs or hybrid models.
The agreement will allow Moove customers’ to have access to after-sales support, repairs and maintenance. This will enable them to keep their vehicles in safe, top-quality condition for a longer lifespan.
Marc Hirschfeld, CEO of CFAO Automotive division says “CFAO is pleased to be part of this mobility partnership in helping to democratise vehicle ownership. We are convinced that 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”.
Drivers must have their details assessed, verified and undergo training before vehicles are assigned by Moove. Drivers can sign up here.
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 per cent of its customers are women.
It aims to ensure that at least 60% of the vehicles financed are electric or hybrid vehicles as part of its commitment to improving road safety and vehicle emissions on Africa’s roads.
To date, Moove-financed cars have completed over 2.6 million trips with over 30 million kilometres travelled across 6 markets which include Lagos, Accra, Johannesburg, Cape Town, Nairobi and Ibadan.
In February 2022, Moove announced a $10m financing from NBK Capital Partners, bringing its total funds raised to date to $78m. The mission of the fundraise is to democratise vehicle ownership across Africa.
Moove is democratising vehicle ownership by providing revenue-based vehicle financing to mobility entrepreneurs across Africa. Limited access to vehicle financing has resulted in the continent having the lowest per capita car ownership in the world.
CFAO Automotive is a division of CFAO Group, a member of the Toyota Tsusho Corporation, that aims at meeting the mobility needs of professionals and individuals. Comprising the most extensive vehicle retail network in Africa, they provide all mobility-related sectors with a multi-brand offer, partnering with global automotive manufacturers: sales of new and used vehicles, short or long-term rentals, fleet management, maintenance.
Their offer includes the complete automotive offering, including two-wheelers, marine engines, coaches, lorries, handling equipment, tyres and spare parts. CFAO’s production and assembly sites in Africa are a shining example of its commitment to actively support industrialisation in the region and creating an affordable offer.