Mobilising East Africa’s sustainable revolution
Mobilising East Africa’s sustainable revolution
In the bustling streets of East African cities, a quiet revolution is taking place. At the forefront of this transformation is Watu Credit, an asset financing company changing the landscape of mobility and financial inclusion across the continent. With a series of strategic initiatives and partnerships, Watu is not only providing access to transportation, but also paving the way for a cleaner, more sustainable future.
In a significant move towards environmental sustainability, Watu Credit has launched an initiative to expand its asset financing support in Tanzania for three-wheelers powered by compressed natural gas (CNG). This project aims to finance at least 1,000 CNG-powered three-wheelers by the end of 2024, marking a substantial step in transitioning the country’s transport sector to cleaner energy sources.
The initiative was officially launched in the Ilala District, one of five districts in Dar es Salaam. “These efforts align with Sustainable Development Goal No. 7 (one of 17 Sustainable Development Goals established by the United Nations General Assembly in 2015), ensuring access to affordable, reliable, sustainable, and modern energy for all, including that every Tanzanian can access affordable and clean energy by 2030,” explains Edward Mpogolo, Ilala District commissioner.
Rumisho Shikonyi, Watu’s manager in Tanzania, underscores the importance of this transition: “Transitioning to cleaner energy is essential, and we are dedicated to financing this project to help the commuters, drivers, and the community adopt clean, safe, and sustainable transport. This commitment helps safeguard our environment because the future of our entire planet depends on the actions we take today.”
The company’s commitment isn’t just lip service: in the two months leading up to the announcement, Watu had already financed over 200 CNG-powered three-wheelers worth TSh2.2 billion (nearly R15 million).
Game-changing blockchain innovation for boda bodas
In Uganda, Watu has partnered with Nodle, a global blockchain innovator, to develop pioneering Internet of Things (IoT) services. This collaboration leverages Nodle’s Decentralised Physical Infrastructure Network (DePIN) to enhance asset locations of Watu’s fleet of two- and three-wheeler motorbikes, commonly known as boda bodas in East Africa.
The Nodle DePIN offers an energy-efficient, secure, and cost-effective solution that doesn’t require investment in expensive telecommunications hardware. Instead, it utilises the ubiquity of smartphones and their geolocation capabilities to provide wider coverage and more precise location data than traditional IoT solutions.
The initiative aims to provide real-time location data for the boda bodas financed by Watu, helping to protect owners in case of theft and supporting Watu’s business model of giving loans to the unbanked and those lacking access to traditional credit.
The boda boda sector, in particular, represents a vital source of employment and economic independence in a number of African countries. For many Ugandan youths seeking income-generating activities, becoming a boda boda rider is one of the most popular jobs and often the main or sole source of income for riders and their families.
Micha Benoliel, CEO and co-founder of Nodle, is enthusiastic about the partnership. “We are pleased to help Watu on its mission of empowering entrepreneurs to improve their lives through asset financing. Demand for the Nodle app in emerging markets is rapidly rising as users find new ways to leverage their smartphones,” he says. “Our partnership will significantly boost the deployment of the Nodle Network in Africa, where smartphones are expected to account for 88% of mobile connections by 2030, up from around 50% today.”
“We’re thrilled to partner with Nodle,” says Gunars Bidins, head of GPS tracking at Watu. “This collaboration allows us to track our asset fleet more efficiently and cost-effectively, ensuring the safety and security of our assets across our expanding African operations. The scalability and flexibility of the Nodle network are a perfect fit for our needs, and we believe this partnership has the potential to revolutionise asset tracking in Africa.”
The partnership will kick off in Uganda and later expand to other African countries, including Kenya, Tanzania, Nigeria, Sierra Leone, and the Democratic Republic of the Congo.
A financial boost expands the bigger picture
This isn’t the only partnership that Watu has formed in Uganda, as it has secured a US$15 million debt investment from Gateway Partner’s African Credit Opportunities Fund (ACOF). This emerging-markets manager invests across markets in Africa, the Middle East, and South and Southeast Asia. The investment will provide the necessary stimulus capital to catalyse growth and support the scaling of Watu’s operations in the country, while also accelerating the overall group’s impact in East Africa.
“This investment will help Watu scale its impact across Uganda’s bustling transport sector. A loan from us goes far beyond the asset – the increased financial stability and ability to participate in the economy extends from the borrower to their family and community,” says Andris Kaneps, co-founder and CEO of Watu, emphasising the far-reaching impact of the investment.
Andy Bainbridge, CEO of ACOF, adds: “We are delighted to be supporting such an innovative and impactful company that is committed to bringing about financial inclusion and empowering people with an opportunity to change the course of their life and pulling many families out of poverty.”
To date, Watu has provided over one million loans across seven countries, positively impacting the lives of more than four million people.
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