Overview:
Flexible financing plans are set to accelerate the informal sector in Uganda by making essential transport, including electric motorcycles, more affordable for riders.
Nova Microfinance has partnered with Simba Automotives Limited, one of Uganda’s largest motorcycle companies, to offer flexible financing and repayment plans designed to increase access to motorcycles for individuals and businesses.
The initiative, which covers both fuel-powered and electric models, is aimed at accelerating growth in the informal sector and making affordable transport more accessible across the companies’ 65 national distribution points.
Under the agreement, Nova Microfinance will provide tailored financing that allows motorcycle taxi, or boda boda, riders to own a bike with a down payment as low as 450,000 Ugandan shillings. The manageable initial deposit and repayment plans spanning 12 to 24 months are key to expanding ownership.
“This partnership with Simba automotives gives our customers access to a wide range of motorbikes that are both fuel-powered and electric, accelerating the growth of the informal sectors and increase in employment opportunities,” said Precious Naluwu, the partnerships manager for Nova Microfinance.
Transport is a critical link in economic productivity, especially for the delivery riders and small traders who rely on the boda boda sector. This sector is Uganda’s second-largest employer.
Chitwan Dogra, the chief executive officer of Simba Automotives, highlighted that by leveraging the combined networks of both firms, they are ensuring motorcycles are accessible to everyone, calling the initiative a major boost for individual riders and small business owners.