More than a billion people in the Global South wake up in the morning not in office buildings but on the road. They transport objects. food delivery transport passengers Our economies are affected by them. And by doing so, they unintentionally contribute to climate change, one of the biggest issues facing humanity today.
Mobility is a problem with the climate. However, if we use the appropriate tools and inclusive thinking in our approach, it may turn out to be one of the most lucrative economic opportunities in the world.
Plain Sight’s Transport Emissions Are Hidden
Nearly 25% of energy-related CO2 emissions are generated globally by the transportation sector, and this figure is even higher in many of the fastest-growing cities in Latin America, Asia, and Africa. However, two- and three-wheelers, informal taxis, and aging trucks used for business and daily survival account for the majority of this pollution.
Internal combustion engine (ICE) vehicles dominate mobility in cities like Lagos, Kampala, and Dhaka. They are inexpensive to purchase but expensive to operate, especially as incomes are squeezed by inflation and fuel prices. They also cause high levels of nitrogen oxides, which are harmful to air quality and health.
The fact that mobility is only getting more and more needed makes this even more urgent. By 2050, Africa’s population is expected to double. Urbanization is gaining steam. The industry is flourishing. We run the risk of putting billions of dollars into a dirty, ineffective system if we don’t consider how mobility functions and who it serves.
Decarbonizing for the Majority: A Missed Opportunity
Electric vehicles, public buses, and charging stations are frequently the subject of the global EV debate. However, electrifying informal and small-scale transportation, particularly in emerging markets, offers the real chance for impact.
We at MAX have discovered that there are three advantages to electrifying the vehicles of gig workers, delivery riders, and rural transporters:
1. Environmental: Less air pollution, Less pollution, and Quirkier Cities
2. Lower operating costs, higher driver’s income, and new green jobs
3. Social: Improved access to markets, healthcare, and education in underserved areas
Take, for instance, Nigeria. Since the introduction of our electric mobility platform, MAX users have avoided an additional 8,874 tonnes of CO2 emissions. We’ve created over 55, 000 jobs thanks to our inclusive financing model, which also gives drivers up to 60% more than their gas counterparts.
That is transformative, not just green.
The Obstacle Is Access, Not Demand.
The issue isn’t just that people don’t want cleaner automobiles. They simply cannot afford them, they claim.
Vehicle financing is essentially absent in the majority of low-income markets. Commercial lending rates can exceed 25%. Credit access is constrained. Additionally, subsidies are created where they are in the formal economy. In order to accurately reflect the realities of the people we serve, we created a model at MAX:
Pay-as-you-earn car subscriptions that don’t require credit history
bundled services like digital tools, maintenance, and insurance
Instead of relying on data to support this model, we design for the poor’s resilience rather than relying on them to demonstrate their creditworthiness.
Additionally, it’s not just MAX. When the right technology and the right funding are combined, businesses like Ampersand in Rwanda, BasiGo in Kenya, and SMV Green in India are demonstrating that micro-mobility electrification is both economically viable and environmentally essential.
Climate Reality and Policy Must Compete.
Despite this advancement, the majority of climate finance still goes to large-scale infrastructure projects and corporate fleets. The informal mobility sector, which is used by billions every day, is largely overlooked.
We need: To truly scale clean mobility:
Low-income operators can use blended finance to reduce the risk of early-stage EV deployment.
Locally assembled components such as electric motorcycles, tricycles, and other local products are subject to import duty exemptions and tax incentives.
Public-private partnerships that place a premium on inclusive transportation rather than just prestigious projects
Encourage decentralization of energy to power the charging infrastructure in rural and peri-urban areas
Climate justice is about who benefits from the solutions, not just who bears the brunt of global warming.
What Should Mobility Look Like in the Future?
a world where:
Using a solar-charged electric tricycle, a farmer in Kano can deliver produce.
Freetown delivery driver makes more money because her EV is less expensive to run.
a young Accra business owner never breaks into a bank branch.
And it all occurs without releasing even one tonne of carbon into the atmosphere.
This is not a hypothetical situation. It’s already occurring, but not quickly enough.
Conclusion: A New Path to Shared Prosperity
In climate discussions, we can’t afford to use mobility as a footnote. It has both a ready solution and a root cause. Mobility can become the engine of equity instead of the engine of emissions with the right innovation, capital, and policy frameworks.
We don’t just build electric vehicles at MAX. One ride at a time, we’re improving access, inclusion, and economic dignity.
We make a call to:
1. Co-creating scalable financing options for micro-EV operators in the informal economy with DFIs and impact investors.
2. governments to implement fast-track import policies and targeted subsidies in their national climate and infrastructure plans to enable micro-mobility electrification.
We’ve demonstrated that the right financing strategy will enable the future, not just today.
The road ahead is electric as well as open. Who has the guts to accelerate, exactly?
Source: Channels TV
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