One of Africa’s premier asset financing companies, Watu, has unveiled its inaugural sustainability report, detailing advancements in financing mobility and connectivity assets while addressing the environmental impact of its operations.
This report marks the beginning of Watu’s sustainability journey, showcasing a firm commitment to Environmental, Social, and Governance (ESG) principles. It represents a significant milestone as Watu invests in initiatives aimed at uplifting millions and creating lasting positive change.
Watu CEO and Founder Andris Kaneps emphasized the importance of sustainable practices in empowering African entrepreneurs. “At Watu, we integrate global best practices with local needs, fostering financial inclusion, upholding the highest safety standards, and championing environmental and social responsibility in everything we do,” Kaneps stated.
Kaneps further added, “We believe that financial inclusion is the catalyst for unlocking Africa’s economic potential. By championing electric mobility and advancing digital inclusion, we’re not just reducing our carbon footprint and closing the digital divide; we’re driving socio-economic development across the continent.”
Since its inception in 2015, Watu has disbursed over 1 million loans, making motorcycles, tuk-tuks, and smartphones accessible to the unbanked and underserved in Kenya, Uganda, Tanzania, Rwanda, Nigeria, the Democratic Republic of Congo, and Sierra Leone.
“Over the years, we’ve adapted our product range to meet our customers’ evolving needs, marked by significant milestones, including introducing electric vehicle financing, reflecting our commitment to sustainability and environmental stewardship. We are dedicated to creating an ecosystem that supports those without access to traditional banking services with tools that enhance digital literacy, economic growth, quality of life, and opportunities across Africa,” Kaneps noted.
Watu’s ESG strategy is anchored by three key pillars: financial inclusion, climate action, and road safety and health. Through these pillars, Watu aims to provide equitable access to underserved communities, focusing on women, youth, and rural residents, while enabling SMEs to meet their financial needs.
“We aim to drive measurable, material change in our communities in a way that brings our purpose to life, differentiates us, and strengthens our business. To do this, we have identified three specific ESG focus areas where we will deliver a truly ambitious agenda,” stated Watu Kenya Country Manager Erick Massawe.
To reduce its carbon footprint, Watu has set an ambitious target to increase financing for electric vehicles and their infrastructure, thereby expanding e-mobility across the continent. In 2024, Watu aims to finance the adoption of 10,000 electric bikes in East Africa, demonstrating its commitment to clean energy and sustainable transportation solutions.
By 2030, Watu plans to increase EV financing to 500,000 bikes and empower 1,000 entrepreneurs to adopt Compressed Natural Gas tuk-tuks by the end of 2024.
2023 Key Highlights from the Report:
- Strategic Investment: In 2023, Watu made a strategic investment in GOGO Electric, formerly Bodawerk International Limited, a Ugandan technology company pioneering electric vehicle (EV) solutions for Africa.
- Assets Financed: Watu financed 680,000 mobility and connectivity assets.
- Rural Focus: 50% of the financing was directed towards rural residents.
- Female Clients: In 2023, 32% of clients were female.
- Customer Satisfaction: The Net Promoter Score (NPS) was 39.07.
- Training Initiatives: Over 20,000 riders received training in Kenya, Uganda, and Tanzania, focusing on road safety and first aid for boda boda riders.
Watu’s inaugural sustainability report underscores its dedication to fostering financial inclusion, promoting sustainable transportation, and enhancing the quality of life for communities across Africa.
