"The reason why we chose to go after the last mile market is that most of the players in the market are run by large corporations that have strong mandates to cut their carbon emissions. Moreover, companies utilise warehouses in their operations, making charging so much easier," El Tayeb adds.
The company is looking to onboard more clients and scale its operations across the Middle East and North Africa region. Its initial target is to convert thousands of logistics vehicles a year to its electric solution.
To help meet that target, HSBC provided Shift EV an unsecured working capital facility to finance a portion of its retrofitting contracts with corporate clients. It is one of the first such facilities issued by a bank in Egypt. HSBC Is also supporting the company’s import requirements through a secured import line.
“Given that the majority of growth in ecommerce and demand for related logistics will come from developing countries, there is an urgent need to hasten the electrification of last-mile deliveries in places like Egypt and elsewhere in the region,” says Ali Taqi, Head of Commercial Banking Egypt at HSBC.
“Shift EV has developed an effective model combining innovation in hardware, software and financing to help businesses facing resource constraints electrify their fleets. By doing so, the businesses can not only contribute to reduction of emissions, but also improve efficiencies to support their bottom line and that of their customers.” Taqi adds.