ImpactAlpha, February 8 – Kampala-based Tugende offers lease-to-own financing on motorcycles for Uganda’s motorbike taxi, or “boda-boda,” drivers. Swiss impact investing firm PG Impact Investments has provided a $5 million loan to Tugende to expand its lending services.
Boda-bodas are a common mode of transportation in Kampala’s traffic-choked streets. Most drivers rent their bikes because they don’t have the ability to buy a motorcycle outright. Tugende’s mission is to improve asset ownership, boost drivers’ incomes, and improve road safety by offering driver safety instruction and insurance.
Tugende: Financing Uganda’s Boda Bodas to Boost Drivers’ Livelihoods (Podcast)
The company has 10,000 customers and has completed 7,000 leases since launching in 2013. It has previously secured debt capital from OPIC and Lendable.