Social Issue

Uganda’s cities are heavily congested and motorcycle taxis are a popular form of transportation. It is estimated that 100,000 people in the capital, largely young men without studies, are engaged in this business. Most of them rent motorcycles indefinitely but owners can take the motorcycles away at any time. In rural areas, where public transport and roads are poor, this service becomes even more important.

Our Response

Tugende is a Ugandan company founded in 2010 that is dedicated to selling motorcycles to entrepreneurs, especially in the country’s capital Kampala, so that they can use the vehicle as a taxi; the so-called “boda bodas”. Tugende’s system consists of payments in 19-month installments. Customers have to make an initial payment of 11% of the price of the motorcycle and then they pay the rest weekly through their mobile phones or at kiosks. If they have made all the payments once reached that time, they become owners of the motorcycle. Furthermore, during these 19 months, customers receive training from Tugende on road safety and maintenance of their motorcycles. They also have an insurance policy to cover damage to third parties and medical and life insurance.

Expected Social Impact

In 2015 Tugende had 1,639 clients. The number of taxi drivers in July 2016 had stood at 2,093. In 2018, the company expects to have 19,704 clients. With our investment we hope that 87 new taxi drivers will be able to finance the purchase of their motorcycle, starting to earn double the money by carrying out the same activity and achieving financial independence.