Centenary Bank, the leading commercial microfinance banking institution in Uganda and Verma Co. the largest motorcycle distributor in the market have partnered to boost motorcycle (Boda-boda) trade as well as reduce the occurrence of boda-boda accidents on Ugandan roads.
Through the two year partnership, Centenary Bank will enable customers acquire their own motorcycles at affordable rates from any of its 60 branches countrywide. In turn, Verma Co. will provide the motorcycles with full protective gear i.e helmet, reflective jackets and first aid kits as well as insurance and road safety training.
In her remarks, Centenary Bank General Manager Business Development, Beatrice Lugalambi said, “At only Shs3.326m, customers who wish to start their own motorcycles (boda-bodas) businesses will be fully equipped to operate through this partnership. We shall further provide the beneficiaries with financial literacy skills to help the new owners manage their businesses and make informed financial decisions.”
The training will be carried out as part of the bank’s CenteBusinessLife programme which has so far directly benefited over 3,000 SMEs across the country.
The Managing Director VermaCo. Sanjay Verma said; “We chose to partner with Centenary Bank due to its strategic targeting of people who would otherwise not access banking services. Verma, under this partnership will also demonstrate proper use of the cycles and offer free mechanical services across the country at our 826 service points.”
Research shows that over 75 percent of boda-boda cyclists do not own the motorcycles they ride, and only work for a daily commission.Already, this year alone, Centenary Bank has enabled 203 youths to access motorcycles in Arua, Adjumani, Moyo and Koboko districts with funding to the tune of Shs728million. This has been done through engagement with local boda-boda associations who helped their members acquire riding permits and acted as guarantors in some regions.