The United Boda Boda Cooperative Union has today launched the National Boda Boda Stage Development Model, an initiative aimed at unlocking the financial independence of riders. The Model is a professionalization effort featuring programs designed to streamline the industry and promote economic empowerment through their SACCO. This SACCO will also pave the way for the creation of a bank dedicated to supporting riders.
The model, themed Empowering Boda-Boda Riders for Growth, is supported by the government through the Ministry of Local Government.
The Boda Boda industry is Uganda’s second-largest employer. Available data shows there are an estimated 1.2 million Boda Boda riders in Uganda, with around 150,000 registered stages. In Kampala alone, there are 350,000 Boda Boda riders and 1,021 registered stages.
However, the industry, a key player in Uganda’s urban mobility, faces several challenges. These include poor management, high accident rates, limited access to favorable leasing and financial services, and reported high crime rates involving Boda Boda riders. According to the 2023 police report, of the 37,449 accidents reported, 37% (13,856) were Boda Boda-related. Additionally, over 15% of the 228,000 reported crimes were linked to Boda Bodas, creating a significant financial burden on the government.
To address these issues, the new model will offer riders access to financial services through the SACCO, which will eventually evolve into a bank. This initiative aims to improve livelihoods while promoting road safety, environmental sustainability, and professionalism within the industry.
Mr. Frank Mawejje, Chairman of the United Boda Boda Riders Cooperative Union, clarified misconceptions surrounding government efforts to regulate Boda Bodas. “There’s a belief that the government’s aim to gazette Boda Bodas is to eliminate the industry, but the goal is to organize it. Today, we are pleased to see these misunderstandings resolved with the launch of this model. It marks a significant step toward streamlining Boda Boda operations in the country. This initiative will enhance financial empowerment, improve traceability, and provide more operators with the economic opportunities, including the establishment of our bank,” he said.
The seven programs of the model include: Health, Road Safety, and Environment; Environment and Climate: The Union will offer incentives to encourage the adoption and use of electric Boda Bodas and advanced technology (Super Tech) within the industry; Union App where Boda Boda riders simply pay a subscription fee of 5,000shs for every seven days, granting them unrestricted access to the platform without commission deductions from their earnings. Also, the app doesn’t dictate a price, the rider has the liberty to negotiate with the passengers the price of the ride and Boda-Boda Stage SACCO where riders contribute a daily fee of Shs 1,000, creating a collective pool of funds that belongs entirely to the riders themselves. After a predetermined period set by the riders, they can withdraw their accumulated savings and reinvest it into their personal or business ventures, fostering growth and sustainability.
Raphael Magyezi, Minister of Local Government, pledged government support for the initiative, highlighting that it will enable more organized tax collection, reduce crime rates, and improve the livelihoods of Boda Boda riders. He also offered support for the establishment of the Boda Boda bank.
Amoako Sadick, a Boda Boda rider and Chairman of the Boda Boda Association in Arua City, expressed his optimism about the launch: “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, especially the difficulty of acquiring a Boda Boda for 4.5 million Shs, particularly in Arua. We’ve faced challenges with money lenders, as a 4.5 million Shs Boda Boda often ends up costing double due to high interest rates. Additionally, with this union, security in our area will be strengthened.”
Ms. Kobusingye Maureen, a Boda Boda rider from Fort Portal, shared her encouragement for women to join the industry: “I encourage all my fellow women to join this work to support their families. Thanks to this job, my children are doing well, and my family is thriving.”
