Tugende

Based in Kampala, Uganda, Tugende is a for-profit social enterprise using asset finance, technology, and a high touch customer support model to help motorcycle taxi drivers and other informal sector entrepreneurs own income-generating assets

Investment

Country: Uganda
Start date: November 2018
Sector: Productive Assets
Instrument: Loan
Investment: USD 750,000

Company Description

Tugende helps motorcycle taxi (boda-boda) drivers buy their own motorcycles in 18 months or less through an affordable lease agreement, giving them the means to control their own tools of employment and kick-starting a path to financial independence.

The company started its activity in 2012 in Uganda and is currently expanding to Kenya and Rwanda and analysing the launch of new goods through leasing agreements.

Social Challenges Addressed

Key SDGs supported

In Uganda, where unemployment rates are high, many young people and adults with little to no education, usually supporting extended families, work as motorcycle taxi drivers (boda-bodas).

Most motorcycle taxi or boda-boda drivers cannot afford a motorcycle, nor access financing from mainstream options to buy one. Instead, they use a large portion of their earnings to rent their motorcycles and their incomes are, therefore, reduced.

Tugende helps boda-boda drivers own an income-generating asset, directly improving their livelihoods and providing a pathway out of poverty by:
  1. Facilitating access to a stable source of income for the drivers and their families, as their income roughly doubles from $5/day before ownership to $10/day afterwards.
  2. Allowing them to own a productive asset with significant resale value at the end of the 20-month financing period.
  3. Providing several other benefits such as insurance, driving permits, safety training, financial literacy training and other products.
  4. Tugende itself is a job-creating company. A leased motorcycle increases the number of employed individuals by more than one, each one supporting both the driver as well as an average of 6 dependents.

Key Performance Indicators

The company’s updated key performance indicators are shown below
About GSI

Global Social Impact Investments SGIIC SAU is an impact investment funds manager that helps investors achieve positive social and environmental impact together with financial returns.

GSI is part of Santa Comba Gestión SL, a family holding that brings together projects promoting freedom through knowledge.

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