Equity Bank signs strikes strategic deal with Energo Tanzania to finance CNG vehicle conversions

DAR ES SALAAM: EQUITY Bank Tanzania has signed a strategic partnership with Energo Tanzania Limited to provide financing for Compressed Natural Gas (CNG) vehicle conversions, a move aimed at helping transport operators lower fuel costs, improve business efficiency and accelerate the country’s transition to clean energy.

The partnership was formalized through the signing of a Memorandum of Understanding (MoU) during the Dar es Salaam International Trade Fair (SabaSaba), where Equity Bank is showcasing its financial solutions for businesses and entrepreneurs.

Under the agreement, Equity Bank Tanzania will provide financing to eligible customers seeking to convert their petrol or diesel-powered vehicles to CNG, while Energo Tanzania Limited will supply and install certified CNG conversion systems that meet the required technical and safety standards.

Speaking during the signing ceremony, Equity Bank Tanzania’s Head of Sustainability, Hellen Dalali, said the initiative reflects the bank’s commitment to providing practical financing solutions that address customers’ everyday needs while promoting environmental sustainability.

She said access to affordable financing would enable transport operators, taxi drivers, fleet owners and small businesses to reduce operating costs, improve cash flow and strengthen the long-term sustainability of their businesses.

“This partnership with Energo Tanzania enables us to make CNG conversion more affordable and accessible. By supporting customers to reduce fuel expenses, we are also contributing to a cleaner and more sustainable transport sector,” Dalali said.

She added that the partnership supports Equity Bank’s broader sustainability agenda by encouraging customers to adopt environmentally responsible and cost-effective business solutions.

Through the financing programme, eligible customers will be able to access short-term asset financing of up to 12 months to cover vehicle conversion costs. Instead of paying the full amount upfront, customers will repay the loan through monthly instalments deducted from their operative accounts, allowing them to begin saving on fuel costs while continuing with their business operations.

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According to the bank, the financing facility is primarily targeted at transport operators, including taxi drivers, fleet owners and micro-enterprises whose businesses are significantly affected by rising fuel prices.

To qualify for the facility, applicants must hold an Equity Bank account, be at least 18 years old, possess a valid driving licence where applicable, and meet the bank’s contribution and security requirements.

The bank noted that the financing solution is expected to improve financial inclusion by enabling customers who may not have sufficient upfront capital to invest in vehicle conversion while maintaining uninterrupted business operations.

Speaking at the event, Energo Tanzania Limited Managing Director, Kahema Mziray, said the collaboration combines the company’s technical expertise with Equity Bank’s financial capacity, making CNG technology more accessible to Tanzanian vehicle owners.

He said the partnership would accelerate the adoption of cleaner and more affordable transport solutions by reducing the financial barriers associated with CNG conversion.

“Through this collaboration, more vehicle owners will have access to quality CNG conversion services backed by affordable financing. It brings together technology, financing and customer support in a way that will benefit transport operators and small businesses,” Mziray said.

Beyond reducing fuel costs, the initiative also supports Tanzania’s clean energy agenda by promoting the use of CNG, which produces lower carbon emissions than conventional fuels and contributes to efforts to mitigate climate change.

The government has been encouraging the adoption of cleaner transport technologies, including CNG and electric vehicles, through supportive policies and tax incentives.

Equity Bank Tanzania said the partnership forms part of its broader strategy to provide financial solutions that extend beyond traditional banking by helping customers improve productivity, manage business costs and adopt sustainable business practices.

The bank continues to collaborate with partners across various sectors to expand access to financial services, including MSME financing, asset finance, trade finance, digital banking, agribusiness, women and youth empowerment, and sustainability initiatives.

The partnership with Energo Tanzania is expected to contribute to Tanzania’s growing clean energy transition while supporting transport businesses to reduce operating costs and improve efficiency.