In a significant move towards promoting sustainable transportation, Watu, an asset financing company in Kenya that offers boda boda and tuk tuk owners loans to thousands of aspiring entrepreneurs, has announced its ambitious plan to finance 10,000 electric bikes in 2024.
The push for electric bikes aligns with global efforts to reduce carbon emissions and foster environmentally friendly commuting options. “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 Andris Kaneps said.
The financing plan features attractive terms to make electric bikes more accessible to a wider population. Watu plans to partner with local governments, businesses, and community organizations to ensure the program’s success.
“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,” Kaneps added.
Since its founding in 2015, the company has disbursed over 1 million loans, offering vital assets such as motorcycles, tuk-tuks, and smartphones to unbanked and underserved populations in Kenya, Uganda, Tanzania, Rwanda, Nigeria, the Democratic Republic of Congo, and Sierra Leone. This initiative has empowered individuals and small businesses, boosting digital literacy and economic opportunities.
“We aim to drive measurable, material change in our communities in a way that brings our purpose to life, differentiates us and strengthens our business. To do this, we have identified three specific ESG focus areas where we will deliver a truly ambitious agenda,” Watu Kenya Country Manager Erick Massawe said.
To lower its carbon footprint, the company has announced ambitious goals for boosting financing for electric vehicles and related infrastructure, aiming to enhance e-mobility across the continent. In 2024, Watu intends to support the adoption of 10,000 electric bikes in East Africa, showcasing its dedication to clean energy and sustainable transportation solutions.
Strategic partnerships with governments and private entities have been crucial in Watu’s efforts to promote collaborative spirit in East Africa. In Tanzania, a collaboration with TRi has introduced electric motorcycles and tuk-tuks. The company works with ARC Ride, Spiro, Ampersand, and other EV players in Kenya to promote electric mobility.
Uganda has seen similar success through a partnership with GOGO Electric, which provides affordable financing for electric motorcycles and fosters the growth of sustainable transport solutions. “Our success relies on strong partnerships,” notes Volokha. These collaborations transform the industry and bring about positive impacts, creating an ecosystem supporting sustainable development.
“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.”
These partnerships are not just about financial growth but also about creating an ecosystem that supports sustainable development. For instance, the collaboration with Ampersand in Rwanda has been pivotal in advancing electric mobility, aligning with Rwanda’s ambitious environmental goals. Such partnerships illustrate a comprehensive approach to tackling the region’s economic and environmental challenges.
By championing sustainable practices and green mobility, Watu hopes to set a precedent for other regional financial institutions. Its commitment to financing environmentally friendly transportation options underscores the significant impact that targeted financial strategies can have on local communities and broader environmental objectives.
Watu’s e-mobility initiatives focus on providing favorable financing terms and forming strategic partnerships with major players in the electric vehicle (EV) industry. These efforts aim to make sustainable options more accessible and affordable for their clients. The company has ambitious long-term goals, including financing 500,000 electric bikes by 2030 and enabling 1,000 entrepreneurs to adopt Compressed Natural Gas (CNG) tuk-tuks by the end of 2024.
Advanced technology is essential for enhancing service delivery. The implementation of telematics and GPS tracking enhances both vehicle security and fleet management efficiency.
With a minimal down payment and flexible weekly payment plans, users can become owners of a boda boda or tuktuk in just 2 hours. Watu provides payment terms that extend up to 24 months, and your loan includes GPS tracking services.
Additionally, Watu collaborates with over 400 authorized dealers throughout Kenya, allowing customers to select the two-wheeler of their choice. Choose from a variety of models, including those from Ampersand, ARC Ride, Bajaj, Haojin, Honda, Jincheng, Lifan, Piaggio, Skygo, and TVS.
The push towards e-mobility also fosters technological innovation and skill development. As the market for electric vehicles grows, so does the demand for specialized skills and technology.
Watu’s initiative creates opportunities for local technicians and engineers to gain expertise in electric vehicle maintenance and repair. This growth in technical skills supports the development of a skilled workforce that can drive further advancements in the transportation sector and beyond.
“By integrating advanced telematics and GPS tracking into our vehicles, we aim to improve security and operational effectiveness,” explains Volokha. Additionally, the company’s mobile app empowers customers to make payments, track their loan statuses, and receive real-time support, which boosts both operational efficiency and customer satisfaction.
The mobile app has been particularly transformative, providing a user-friendly platform for financial management. This technological advancement not only enhances the user experience but also minimizes operational downtime, leading to greater overall efficiency.
By embracing these technological innovations, the company remains at the cutting edge of financial technology. The app’s capabilities in facilitating payments, tracking loans, and offering real-time support contribute significantly to improved operational efficiency and customer satisfaction.
One of the most significant impacts of Watu’s e-mobility initiative is its contribution to environmental sustainability. The adoption of electric bikes represents a substantial reduction in greenhouse gas emissions compared to traditional petrol-powered vehicles. In a region where air quality and pollution are growing concerns, the shift to electric vehicles offers a cleaner alternative that aligns with global efforts to combat climate change.
The introduction of electric vehicles opens up new opportunities for business owners, reducing operational costs associated with fuel and maintenance, and creating a ripple effect of economic activity.Watu’s commitment to sustainability is clear in its active support for green mobility. Since March 2022, the company has financed more than 1,000 electric bikes in Rwanda, benefiting over 6,000 people.
By the end of 2023, Watu had financed over 2,000 electric bikes across Kenya, Rwanda, and Uganda. Electric bikes offer numerous benefits, including reduced transportation costs, lower carbon footprints, and increased convenience for urban commuters. Watu’s initiative is expected to have a substantial impact on reducing traffic congestion and pollution in cities.
Watu’s goal to finance 10,000 electric bikes in East Africa by 2024 underscores its commitment to reducing carbon emissions and promoting green energy solutions. This large-scale adoption of electric bikes can lead to a notable decrease in urban air pollution, benefiting public health and enhancing the quality of life for residents.