The boda boda (motorcycle transport) industry plays a significant role in the Ugandan economy by providing a primary source of income for a large portion of the population, particularly youths, acting as a key mode of transportation in both urban and rural areas. Boda bodas support related businesses and contributes to the general economy through their widespread use for short-distance travel and goods delivery. They are so popular that even President Yoweri Museveni has used them at some point.
The boda boda sector contributes billions to the national economy per annum. Exact figures of operators in the country are sketchy but they are anywhere above 500, 000.
Therefore, boda boda is a very important component of Uganda’s informal economy, providing a convenient means of conveyance for people, goods and services while also supporting other businesses like spare part dealers, repair shops, fuel suppliers and construction material suppliers on whom they spend their hard-earned monies to put up houses.
Although the business offers employment opportunities for many Ugandans, it suffers many challenges.
These challenges came to the fore recently when President Yoweri Museveni was on his
performance assessment tour of the Parish Development Model (PDM) in Busoga.
On January 25, the President had a rally with thousands of boda boda operators in an engagement organised in Iganga by myself in my capacity as Special Presidential Assistant Press and Mobilisation, and a son of the soil. It was the first time in Uganda’s history that a meeting that size for only boda boda is addressed by the President. This started in August last year when some riders approached me and raised a number of serious challenges that were hampering their work.
Among them, the issue of violent murders of boda boda riders came to the fore. It was revealed that a number of them have been brutally murdered and their motorcycles taken. And nearly ninety percent of all the boda boda killed in the sub-region had one unique feature, namely; they were all riding motorcycles acquired on loan, and when were about to complete repayment. Moreover, these motorcycles had tracking devices but have never been recovered. Indeed, the AIGP Brig. Gen. Christopher Damulira of the Directorate of Crime Intelligence- Uganda Police Force confirmed these reports. Police has the statistics.
And while lives of riders are lost that way, it was reported that the living are operating under a very tight credit squeeze which makes it impossible to earn reasonable income from their trade.
Most of the motorcycles are acquired on loan but with a lot of costs levied by the companies supplying them. One pays an initial installment and pays the rest over a period of time. By the time the payment is completed, one will have paid double the cost of a new one. The calculation is as follows; Loan repayment is required within 24 months. Each week they repay Shs100,000 and every month Shs400,000 giving a total of Shs9.6m plus a one-off application processing fee of up to Shs1.5million. This means that the operator has to part with a total of Shs11million to eventually purchase one motorcycle. This is worth two motorcycles on cash sale. The companies claim a heavy tax burden which they offset by transferring the cost to the customers. This can be looked into.
In case the customers default on payment, the companies impound the motorcycles and resale them. The riders on hire purchase have no documents of ownership at this stage and cannot make a legal claim.
Moreover, the sale agreement between the buyer and the company is also hidden. The company does not share the agreement and as well retains the motor cycle card.
The riders also reported the matter of high costs for acquisition of permits and the annual permit fees of Shs100, 000, totaling Shs215, 000 including medical examination fees, competence tests, etc.
It was also reported that they are paying the same amount for the new digital number plates as for cars.
The rider who does not go for a loan eventually works for a boss who owns the motorcycle. Generally, out of every ten riders in Busoga, six do not own the motor cycles they ride and are required to pay a daily fee of Shs10,000 to the owner even if they earn nearly the same amount a day. This shows that the riders are deeply exploited and highly underemployed. They request to be provided with motorcycles on softer terms through their associations.
These problems are faced by colleagues in Greater Mukono where a big proportion of riders originate from Busoga. But even in Bukedi and other parts of the country, the outcry is uniform. The entire boda boda sector needs interventions to help the industry thrive. If boda boda riders don’t feel safe or if they don’t make ends meet and they quit, unemployment and insecurity will spike.
Since President Museveni heard for himself the issues affecting his friends, the boda boda operators, and remedial interventions are going to be made in the eighteen zones of the country. Investigations into the murders should be conclusive so that perpetrators are known, exposed and prosecuted accordingly so as to prompt justice and restore confidence so that the riders can work freely without fear. Motorcycle supply companies need to be regulated and audited to establish why they overcharge their customers.
As measures are being undertaken to address the challenges named, the boda boda riders should also do their part to ensure that their business is respected and profitable.
They need to be law-abiding, respect traffic regulations, avoid working with wrong elements, they should be smart, avoid reckless living, get insurance and work hard to afford their own motorcycles and at some point, employ others. They should aim to diversify into other sectors like farming and trade. They should also be organised with clear leadership so that when support comes, it is not misappropriated. They should, as well, make use of Government programs like Emyooga, to get money at very low interest, invest and pay back on considerate terms. With calculations, today’s loan-squeezed rider can become an owner of a fleet of machines, and even upgrade to driving and owning taxis and buses. All it takes is taking the job seriously and for good reasons because I know some riders earning more than white collar office workers.
I thank H.E the President for meeting with the boda boda fraternity and hearing from them. It shows his commitment to transform the industry for better service and gain and to create a pure boda boda moneyed class. This move will go a long way in ironing out problems affecting the industry as part of the greater Socioeconomic agenda which leaves no one behind.
The author is the Special Presidential Assistant-Press & Mobilisation/Deputy Spokesperson
Email: faruk.kirunda@statehouse.go.ug
0776980486/0783990861
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