Buying a new car in many African countries requires buyers to pay the full cost at once—not a feasible option for people in low and middle income brackets—or make do with highly unfavorable car loan terms from banks in the few instances where such loans are accessible. Car ownership is therefore an elusive dream for many on the continent. Africa accounts for only 1% of new car sales in the world, according to Mordor Intelligence, a research firm. To solve part of this problem, Moove—a car financing company—started a pilot in Lagos, Nigeria in 2020. It has a credit-scoring system that can be plugged into ride-hailing and logistics platforms. With this, Moove can know how well a prospective borrower performs on metrics like number of rides completed and how much they make, using the information as the basis for offering a car loan within five days.
SOURCE: QUARTZ AFRICA