Plan for Boda Boda Bank Unveiled

Boda Boda riders in Uganda have launched the process of establishing their bank to help in savings, acquisition of bikes and overall personal development.

Under their umbrella, United Boda Boda Cooperative Union, the newly launched National Boda Boda Stage Development Model, is expected to unlock their financial independence.

The Model mainly aims to streamline the industry and promote economic empowerment through their SACCO, which is expected to further facilitate the establishment of a bank dedicated to supporting riders.

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

Available data show that there are over an estimated 1.2 million Boda Boda riders in Uganda with about 150,000 registered stages, with Kampala alone hosting about 350,000 riders and 1,021 registered stages.

However, lack of streamlined management, high rates of accidents, limited access to friendly leasing and financial services and reported high crime rates by operators have limited the growth of the Industry.

Now, through their respective boda boda stages, the model will enable the riders to access financial services through a Sacco that shall be transformed into a bank, as well as resources to improve their livelihoods while promoting road safety, environmental sustainability, and professionalism within the industry.

Frank Mawejje, Chairman of the United Boda Boda Riders Cooperative Union, noted the misconceptions that efforts by the government to gazette boda bodas were meant to eliminate the industry, instead of organising it.

“Today, we are now pleased to see these misunderstandings resolved with the launch of the model, marking a significant step toward streamlining boda boda operations in the country,” he said.

The seven programs of the model include Health, Road Safety, and Environment; Impactful projects focused on promoting health; and road safety for Boda Boda riders will be implemented.

These projects will include regular health check-ups, access to affordable health insurance, and sensitization campaigns on critical health issues such as HIV/AIDS prevention, and mental health.

Under environment and climate projects, the Union will offer incentives to encourage the adoption and use of electric Boda Bodas and advanced technology (Super Tech) within the industry.

The Union also unveiled the Union App, an application that uses a unique payment model where Boda Boda riders simply pay a subscription fee of 5,000 Shillings weekly, enabling them to avoid commission charges.

Under the Boda-Boda Stage SACCO, riders contribute 1,000 Shillings daily, 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.

The union has initiated a songwriting competition for Union App winners to win over 250 million Uganda Shillings for Song Writing semi-finalists and finalists in five regions.

Raphael Magyezi, Minister of Local Government, pledged government support for the initiative, emphasizing that it would enable the government to collect taxes from the industry in an organized manner, reduce crime rates, and improve the livelihoods of boda boda riders.

He also pledged government support towards the establishment of the bank for boda boda riders.