Boda Boda riders to form their own bank following initiative launch

KAMPALA, February 5, 2025 –– The United Boda Boda Cooperative Union recently launched the National Boda Boda Stage Development Model, an initiative designed to unlock the financial independence of the commercial riders in the country.

This model is part of the efforts aimed at streamlining the boda boda industry and promoting economic empowerment of the riders through their SACCO. The SACCO is expected transition into  a bank dedicated to supporting the commercial riders in the country.

The model, themed, ”Empowering Boda Boda Riders for Growth”, is supported by government through the Ministry of Local Government.

The Boda Boda industry is Uganda’s second-largest employer. Available data indicates there are approximately 1.2 million Boda Boda riders in Uganda, with around 150,000 registered stages. In Kampala alone, there are 350,000 Boda Boda riders and 1,021 registered stages.

However, the industry, a key player in Uganda’s urban mobility, faces several challenges, including poor management, high accident rates, limited access to favourable leasing and financial services, and high crime rates involving Boda Boda riders.

According to the 2023 police report, of the 37,449 accidents reported, 37 percent [13,856] were Boda Boda-related. Additionally, over 15 percent of the 228,000 reported crimes were linked to Boda Boda riders, creating a significant financial burden on the government.

To address these challenges, the National Boda Boda Stage Development Model will now offer riders access to cheap financial services through the SACCO, which will eventually evolve into a bank. This initiative aims to improve livelihoods while promoting road safety, environmental sustainability, and professionalism within the industry.

Frank Mawejje, Chairman of the United Boda Boda Riders Cooperative Union, clarified misconceptions surrounding government efforts to regulate Boda Bodas. “There is a belief that the government’s aim to gazette Boda Bodas is to eliminate the industry, but the goal is to organise it. Today, we are pleased to see these misunderstandings resolved with the launch of this model,” he said.

Mawejje said the launch of the model marks a significant step towards streamlining Boda Boda operations in the country. ”This initiative will enhance financial empowerment, improve traceability, and provide more operators with economic opportunities, including the establishment of our bank,” he said.

The programmes of the model include:

• Health, Road Safety, and Environment;
• Environment and Climate: The Union will offer incentives to encourage the adoption and use of electric boda bodas and advanced technology within the industry;
• Union App: Boda boda riders pay a subscription fee of Shs 5,000 for seven days, granting them unrestricted access to the platform without commission deductions from their earnings. The app also allows riders to negotiate prices directly with passengers;
• Boda Boda Stage SACCO: Riders contribute a daily fee of Shs 1,000, creating a collective pool of funds that belongs entirely to the riders themselves. After a predetermined period set by the riders, they can withdraw their accumulated savings and reinvest it into their personal or business ventures, fostering growth and sustainability.

Launching the model in January, Raphael Magyezi, the Minister of Local Government, pledged government support for the initiative, emphasising that it will enable more organised tax collection, reduce crime rates, and improve the livelihoods of Boda Boda riders. He also offered support for the establishment of the Boda Boda Bank.

Sadick Amoako, a boda boda rider and Chairman of the Boda Boda Association in Arua City, expressed his optimism about the boda boda cooperative union. “I am very pleased with the launch of this union, the first of its kind in the country. I am confident that our challenges will be addressed, especially the difficulty of acquiring a boda boda, particularly in Arua,” he said. ”We’ve faced challenges with moneylenders, a Shs 4.5 million boda boda often ends up costing double due to high interest rates. Additionally, with this union, security in our area will be strengthened.”

Maureen Kobusingye, another boda boda rider from Fort Portal City, encouraged fellow women to join the industry, saying her family relies on service in the industry to survive: “I encourage all my fellow women to join this work to support their families. Thanks to this job, my children are doing well, and my family is thriving,” Kobusingye said.

Meanwhile, President Yoweri Museveni plans to set up loan schemes for boda boda riders in Uganda, with an intent of saving them from exploitation by private companies giving out boda bodas on loan. Museveni made the remarks recently while addressing a boda bodas in a rally Iganga district. The boda boda rally had been organised by the Special Presidential Assistant on Press and Mobilisation, Faruk Kirunda.

https://thecooperator.news/museveni-to-set-up-boda-boda-loan-schemes/

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