Watu to bring 10,000 e-bikes to East African streets this year
Pan-African asset financier Watu Africa plans to accelerate East Africa’s switch over to e-mobility by financing up to 10,000 electric bodabodas this year.
This undertaking is a key plank of the company’s commitment to the adoption of clean energy across economies as well as promoting sustainable transportation offerings in Kenya, Uganda, and Tanzania.
According to Watu’s 2023 sustainability report, the company seeks to increase the financing of electric vehicles to 500,000 bikes by 2030 while empowering 1,000 entrepreneurs to adopt Compressed Natural Gas tuk-tuks by December 2024.
This commitment was disclosed in the company’s maiden sustainability report which also shed light on Watu’s progress in funding mobility as well as the firm’s impact on the environment across seven countries where it has a presence.
“We are at the beginning of our journey to increase financing for electric vehicles and their infrastructure. In 2024, we will be developing our carbon reduction targets and exploring ambitious opportunities in the EV sector,” Watu’s sustainability report states in part.
“Watu aims to lead the transition towards greener transportation in Africa by focusing on electric mobility solutions. This commitment not only aligns with global environmental goals but also supports the development of infrastructure for electric vehicles, fostering innovation and promoting eco-friendly practices.”
Watu CEO and Founder Andris Kaneps explained that empowering millions of African entrepreneurs starts with a commitment to sustainable practices.
“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,” added Andris Kaneps.
“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,” Mr Andris added.
Since its inception in 2015, Watu has disbursed over 1 million loans, unlocking opportunities by making motorcycles, tuk-tuks, and smartphones accessible to the unbanked and underserved citizens of Kenya, Uganda, Tanzania, Rwanda, Nigeria, the Democratic Republic of Congo, and Sierra Leone.
With a gross revenue of over $138 million in 2023, Watu notes that its initiatives have impacted over four million customers across the continent.
Read also: Watu sets out to equip Boda Boda offices across Kenya
ESG focus areas
“Over the years, we’ve adapted our product range to meet our customers’ evolving needs, marked by significant milestones, including introducing electric vehicle financing, reflecting our commitment to sustainability and environmental stewardship. We are dedicated to creating an ecosystem that supports those without access to traditional banking services with tools that enhance digital literacy, economic growth, quality of life, and opportunities across Africa.”
Watu’s ESG strategy is underpinned by three key pillars: financial inclusion, climate action, and Road Safety and Health. Through these pillars, Watu seeks to provide equitable access to underserved communities, focusing on women, youth, and rural residents while enabling SMEs to meet their full financial needs.
“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 reduce its carbon footprint, Watu has set an ambitious target of increasing financing for electric vehicles and their infrastructure, which will help expand e-mobility across the continent.
Last year, Watu entered into a strategic partnership, investing in GOGO Electric, formerly Bodawerk International Limited, a Ugandan technology company that is pioneering the deployment of electric vehicle (EV) solutions for Africa.
“In 2023, GOGO Electric achieved a significant milestone by developing Africa’s first fit-for-purpose electric boda (motorcycle taxi) bike.”
Additionally, Watu financed individuals and businesses to acquire 680,000 mobility and connectivity assets, with half of these investments going to the rural folks. What’s more, at least three of every 10 buyers were female.
The company, which earlier this year committed to equip boda boda offices with modern office equipment, offered road safety training to over 20,000 riders in Kenya, Uganda, and Tanzania.
