Boda boda riders’ initiative seeks to establish own bank

The United Boda Boda Cooperative Union has launched the National Boda Boda Stage Development Model to unlock financial independence of the riders.

The model is a professionalization initiative featuring programs designed to streamline the industry and promote economic empowerment through their Sacco. The Sacco will further facilitate the establishment of a bank dedicated to supporting riders.

Themed Empowering Boda Boda Riders for Growth, the model is supported by the government through the ministry of Local Government. The boda boda industry is the second largest employer in Uganda. Available data show that there are an estimated 1.2 million boda boda riders in Uganda with about 150,000 registered stages. In Kampala alone, there are 350,000 boda boda riders and 1,021 registered stages.

However, the industry, a dominant player in Uganda’s urban mobility, is plagued by lack of management, high rates of accidents, limited access to friendly leasing and financial services and reported high crime rates by boda boda riders.

According to the 2023 police report, out of 37,449 accidents reported, 37% (13,856) were boda-boda-related. Furthermore, over 15% of the 228,000 reported crimes were connected to boda-bodas, creating a significant financial burden on the government.

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

According to Frank Mawejje, the chairman of the United Boda Boda Riders Cooperative Union, there are misconceptions that efforts by government to gazette boda bodas are being made to eliminate industry, when, in reality, the goal was to organize them.

“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. This initiative will enhance financial empowerment, as it enables better traceability, allowing more operators to benefit from the model’s economic opportunities including establishing our bank,’’ he said.

Among the seven programs of the model is health, road safety, and environment. It is here that the 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.

The union will also offer incentives to encourage the adoption and use of electric boda bodas and advanced technology (Super Tech) within the industry. During the launch, Raphael Magyezi, the 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. Sadick Amoako, a boda boda rider and the chairman of boda boda, Arua City, said: “I am very glad about the launch of this union today, the first of its kind. I am confident that our challenges will be addressed because acquiring a boda boda for 4.5 million shillings has been a struggle, especially in Arua. We have faced difficulties with moneylenders, as a boda boda worth Shs 4.5 million ends up costing double due to high interest rates. Additionally, with this union, security in our area will be strengthened.”

Meanwhile, Maureen Kobusingye, a boda boda rider from Fort Portal, said: “I want to encourage all my fellow women to join this work so they can support their families. Thanks to this job, my children are doing well, and my family is thriving.”