Unreasonable

How Motorcycles Can Solve Uganda’s Biggest Problems

On an otherwise reasonable evening, more than 1,000 people packed an auditorium in Boulder, Colorado, for the culmination of the 2012 Unreasonable Institute. They came to see 23 ventures present their solutions to some of the world’s greatest challenges.


Michael Wilkerson, Co-Founder & CEO of Tugende (formerly named Own Your Own Boda) shares how his venture is lifting Ugandans out of poverty through enabling access to motorcycles.

Most of Kampala’s over 10,000 boda boda drivers rent their bikes indefinitely from landlords who can remove the bikes at any time. Thus many drivers struggle to build savings and have no easy path toward financial independence. Tugende gives loans to boda boda drivers in the form of a new motorcycle to be paid off over 16-18 months. The weekly payments are only slightly higher than the rental rate and there is a major light at the end of the tunnel. After finishing their loan Tugende clients have used their savings to invest onward in building houses, buying farm animals, and better providing for their families’ health and education.

Why Give A Damn:

In Uganda, driving a boda boda is one of the best available jobs for young men with little education, many of whom support extended families. Take home earnings are up to $5/day in a country where 64.5% of the population lives on less than $2/day (World Bank). However, most of Kampala’s over 10,000 boda boda drivers rent their bikes indefinitely from landlords who can remove the bikes at any time. Thus while technically above the poverty line, many drivers struggle to build savings and have no easy path toward financial independence.

Tugende’s Solution:

Tugende gives loans to boda boda drivers in the form of a new motorcycle to be paid off over 16-18 months. Our weekly payments are only slightly higher than the rental rate and there is a major light at the end of the tunnel. Ownership provides a pathway out of poverty for drivers and their families by removing a major weekly cost and providing an asset with significant resale value. Tugende clients have used their savings to invest onward in building houses, buying farm animals, and better providing for their families’ health and education. In addition to the loans, Tugende provides helmets, basic insurance, and requires drivers to have passenger service licenses and valid driving permits. We hope to provide increased offerings, like health insurance as we grow.