- This year, Watu is set to introduce 10,000 electric motorbikes in Kenya, Tanzania, and Uganda.
- Watu has committed to enhancing its electric vehicle funding portfolio to 40 percent in three years and to finance the acquisition of 500,000 electric motorbikes by 2030.
- The firm has entered into a partnership with Uganda-based GOGO Electric, to power the design and development of Africa’s first fit-for-purpose electric boda bike.
As the global call for the protection of the environment grows louder, the need for individuals, companies, and governments to promote sustainable development such as the adoption of green mobility solutions is gathering pace.
In East Africa, a market of over 300 million people, extreme weather conditions partly worsened by global warming have seen the area swing between devastating drought and deadly floods.
Increasingly, however, investors are collaborating to change the tide. One of the pioneers seeking to play a critical role in checking pollution is asset financier Watu Credit, whose programs in driving Africa’s sustainability agenda are gaining momentum in the green mobility segment.
According to Watu’s inaugural sustainability report for the fiscal 2023, the company has set ambitious targets to revolutionize green mobility in Kenya, Uganda and Tanzania.
Trailblazing green mobility initiatives in East Africa
Watu’s disclosures in the company’s 2020 sustainability report show the firm is at the heart of East Africa’s push for green mobility. For instance, this year, the company is rolling out a plan to introduce 10,000 electric motorbikes in Kenya, Tanzania, and Uganda.
Recognizing the huge benefits that electric vehicles can offer the region, Watu has committed to step up its electric vehicle funding portfolio to 40 percent in three years and to finance customers—individuals and corporations alike—to purchase an estimated 500,000 electric motorbikes by 2030.
“At Watu, we integrate global best practices with local needs, fostering financial inclusion, upholding the highest safety standards, and championing environmental and social responsibility in everything we do,” Watu CEO and Founder Andris Kaneps noted at the release of the firm’s maiden sustainability report.
“We believe that financial inclusion is the catalyst for unlocking Africa’s economic potential. By championing electric mobility and advancing digital inclusion, we’re not just reducing our carbon footprint and closing the digital divide; we’re driving socio-economic development across the continent,” Mr Andris added.
To bring green mobility solutions into reality, Watu has entered into a partnership with Uganda-based GOGO Electric, a deal that has given birth to the design and development of Africa’s first fit-for-purpose electric boda bike.
“In 2023, Watu made a strategic investment in GOGO Electric, formerly Bodawerk International Limited, a Ugandan technology company pioneering electric vehicle (EV) solutions for Africa. This partnership highlights Watu’s commitment to driving sustainable transportation and expanding e-mobility across the continent,” the sustainability report states in part.
“Watu’s support has financed over 1,000 GOGO bikes, with projections exceeding 5,000 on Ugandan roads by the end of 2024.”
Watu-GOGO Electric alliance deploying battery-swapping stations in Uganda
To enhance the green mobility value chain in Uganda, Watu is working with GOGO, strategically deploying a network of battery-swapping stations throughout the country to support the uptake and usage of electric motorbikes.
The GOGO-Watu alliance not only backs the push for sustainable transport services in East Africa, but also helps address specific mobility needs of the African market such as access to financing.
By offering affordable and efficient electric bikes fit for the African transport ecosystem, asset financier Watu is steadily striving to cut carbon emissions and answer the urgent call for cleaner urban transport.
The focus on electric motorbikes (popularly known as boda bodas in Kenya and Uganda and Bajaj in Tanzania) is poised to create a huge impact given the ubiquitous nature of motorcycle taxis across the countries. Boda bodas are a vital source of earnings and employment for millions of young people across East Africa.
In August this year, taxi-hailing giant Bolt, electric vehicle manufacturer TRÍ, and Watu entered into a partnership, launching a pilot program that will see the deployment of electric Bajajis (three-wheelers) in Tanzania.
The three partners said these Bajajis are designed to meet the specific needs of Tanzanian drivers, offering a practical, sustainable, and economical alternative to traditional petrol-powered vehicles.
For drivers, a full charge for the battery costs about TSh2,900, compared to around TSh20,000 for the equivalent range in petrol, a huge difference that can translate into savings for millions of investors, an analysis by the companies stated. These reduced operational costs directly increase driver earnings, offering a tangible financial incentive to adopt electric vehicles.
Since entering the market in 2015, Watu disclosures show that the asset financier has disbursed over one million loans, unlocking huge economic opportunities by making motorcycles, tuk-tuks, and smartphones accessible to the unbanked and underserved people in Kenya, Uganda, Tanzania, Rwanda, Nigeria, the Democratic Republic of Congo (DRC), and Sierra Leone markets.
“Over the years, we’ve adapted our product range to meet our customers’ evolving needs, marked by significant milestones, including introducing electric vehicle financing, reflecting our commitment to sustainability and environmental stewardship,” Watu’s inaugural sustainability report notes.
“We are dedicated to creating an ecosystem that supports those without access to traditional banking services with tools that enhance digital literacy, economic growth, quality of life, and opportunities across Africa.”
Watu’s ESG strategy is underpinned by three key pillars: financial inclusion, climate action, and Road Safety and Health. Through these pillars, Watu seeks to provide equitable access to underserved communities, focusing on women, youth, and rural residents while enabling SMEs to meet their full financial needs.
Social responsibility to enhance green mobility drive
Across the region, Watu’s has been making indelible marks, delivering community-focused projects. One of Watu’s flagship programs is the “Tujenge Msingi”, a program that the company is running in liaison with authorities in Kenya.
Kenya, a market where motorcycles are ubiquitous — from Nairobi’s CBD to dirt roads in remote villages—“Tujenge Msingi”—has been instrumental in sharpening key players’ grasp of road safety, first aid, and the potential benefits of going green. This way, Watu is not only advancing and promoting safer roads but also facilitating the shift to green mobility.
Another outstanding initiative by Watu to buttress the mobility ecosystem has been the rollout of Watu Shule, a knowledge-sharing program that specializes in training riders of boda bodas on compliance issues such as licenses, and adherence to road safety measures.
According to Watu, “the lack of proper licensing and training among riders,” is one of the biggest challenges gripping the mobility industry today.
Watu Shule enhances the industry’s professional standards, ensuring that thousands of riders run their businesses safely and responsible manner.
Currently, over 3,000 riders have trained in Kenya with 1,500 obtaining licenses under Watu Shule. “Building on the Kenyan success, Watu Shule launched in Uganda in late 2023. By May 2024, they had enrolled over 800 clients, with a remarkable 64 percent already securing their licenses,” Watu notes.
In Tanzania, a total of 18,670 motorcycle riders have been trained in road safety and loan management.
“Students who excel in our programs gain access to exclusive opportunities with various taxi and delivery platforms. This expanded network allows them to tap into a wider range of clients and significantly increase their earning potential.”
These social responsibility initiatives reflect Watu’s broad-based approach to the sustainability of the industry in key markets, thereby building a resilient and sustainable sector.
Read also: Bolt, TRÍ, and Watu launch new plan to accelerate eco-mobility with electric Bajajis
