Kampala, Uganda | URN | Ugandans registered the highest number of new motorcycles in the year that ended June 2019 in what could be an indicator a larger number of people are entering the Boda Boda industry.
According to figures published by the Uganda Revenue Authority (URA), Ugandans registered 103,169 motorcycles in 2018/2019, the highest number ever in a single year. This was a jump from 49,635 motorcycles registered in 2017/2018. The annual average registration is 50,000 motorcycles.
The wave to acquire Boda Boda motorcycles has been helped by the increment in the number of organizations that give loans for motorcycles. They include Tugende Limited, Mogos Car and Boda loans, Asaak Services, and World Vision.
Individuals can just make an initial deposit of 500,000 shillings and get a motorcycle and then pay the rest in 24 months.
Albert Nuwamanya, the head of sales at Mogo Finance Limited said the demand is quite high especially from the youth. He said in two months, they would manage to give up to 200 motorcycles. This means every month, just one company would give out 100 motorcycles.
Tugende Limited, which also gives motorcycle loans, also reports that at least 30,000 clients have picked their motorcycles and at least 10,000 of them have already paid. Tugende has extended to Kenya too.
High unemployment in the country means Boda Boda taxi is a run to the sector with many energetic youths going for the trend.
The government will in November implement a Boda free zone policy that will Boda Bodas limited from reaching certain parts of the Kampala city. The move has been criticized as akin to colonial segregation but the government says it wants to control the motorcycles menace.
The crazy for buying autos didn’t stop with motorcycles. URA figures show that between June 2018 and June 2019. Ugandans had, for instance, registered 22,150 station wagons up from 20,655 registered between June 2017 and June 2018.
Nuwamanya described the demand for car loans as “crazy.” Car or motorcycle purchased through loan companies are usually more expensive compared to where one goes with cash to the bond. That is the people seem willing to pay to acquire a new auto.
The registration of new pickups and tractors went up while that of vans and min-buses went down in the period under-reporting.
URA figures also show that the registration of trucks went up tremendously to 3,064 between June 2018 and June 2019 from just 88 registered between June 2017 and June 2018. Trucks are mostly used for business to carry goods across the country and neighbouring countries.