OPIC Provides Loan to Support Small Business Lending and Transportation in Uganda
July 31, 2018
(OPIC)
WASHINGTON – The Overseas Private Investment Corporation (OPIC) has provided a
$5 million loan to Tugende Limited, which supports small business lending and
expanded transportation in Uganda by providing lease-to-own financing to
motorcycle taxi drivers.
Tugende is a six-year-old business that tapped into pent up demand for
lease-to-own financing among motorcycle taxi drivers and quickly expanded into a
150-employee business that has to date served more than 12,000 customers --
5,000 of whom have already purchased their motorcycle taxis outright. The
business, which has grown with no advertising, will use the OPIC loan to scale
up its successful operations in Uganda, and offer a path to ownership and higher
income for many more of the estimated one million full time motorcycle taxi
drivers in East Africa.
Tugende, which means “let’s go,” was founded by American Michael Wilkerson
who spent time as a Fulbright scholar and a journalist in Uganda and discovered
that “bodas” or motorcycle taxis, were a critical part of the country’s
transportation infrastructure. As he got to know more boda drivers he also
learned that many worked long hours but could not attain financial security
since they could not access the credit to purchase their own bodas.
“By supporting Uganda’s boda drivers, we are empowering local entrepreneurs
while also helping to strengthen a key mode of transportation in Uganda,” said
Ray W. Washburne, OPIC President and CEO. “This project will advance OPIC’s
new Connect Africa initiative to invest in transportation, technology and value
chains across the continent.”
In addition to promoting boda ownership, Tugende offers drivers training on
safety, financial planning and customer service. Drivers can typically take
ownership of a boda in 20 months, which can result in them doubling their take
home income. Many of these borrowers have used this additional income to invest
in healthcare and education for their families, or to start additional small
businesses and create more jobs.
“Bodas are a key source of transportation in Uganda, but for boda drivers and
many other small business operators access to capital has always been the
biggest challenge,” said Tugende Founder and CEO Michael Wilkerson.
“OPIC’s financing will help us provide financial security, asset ownership
and higher income for thousands of additional drivers and improved quality of
life for tens of thousands of their family members.”
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.