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Watu, one of Africa’s leading asset financing companies, has published its inaugural sustainability report, detailing its progress in financing mobility and connectivity assets and the environmental impact of its operations.
This report marks the beginning of Watu’s commitment to Environmental, Social, and Governance (ESG) principles, underscoring the company’s dedication to creating lasting positive change across the continent.
Watu CEO and Founder, Andris Kaneps, emphasized the company’s focus on sustainable practices as a foundation for empowering millions of 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,” said Kaneps.
He 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, facilitating access to motorcycles, tuk-tuks, and smartphones for unbanked and underserved citizens in Kenya, Uganda, Tanzania, Rwanda, Nigeria, the Democratic Republic of Congo, and Sierra Leone. The company’s adaptation of its product range to meet customers’ evolving needs includes significant milestones such as the introduction of electric vehicle financing, showcasing Watu’s commitment to sustainability and environmental stewardship.
Watu’s ESG strategy is based on three key pillars: financial inclusion, climate action, and road safety and health. Through these pillars, the company aims to provide equitable access to underserved communities, focusing on women, youth, and rural residents while enabling SMEs to fulfill their financial needs.
Erick Massawe, Watu Kenya Country Manager, highlighted the company’s ambitious ESG agenda. “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,” Massawe said.
To reduce its carbon footprint, Watu has set a target of increasing financing for electric vehicles and their infrastructure, expanding e-mobility across the continent. In 2024, the company aims to finance the adoption of 10,000 electric bikes in East Africa, promoting 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.
Key highlights from Watu’s 2023 report include:
- A strategic investment in GOGO Electric, a Ugandan technology company pioneering electric vehicle (EV) solutions for Africa.
- Financing 680,000 mobility and connectivity assets.
- 50% of financing allocated to rural residents.
- 32% of clients were female.
- Achieving a Net Promoter Score (NPS) of 39.07.
- Training over 20,000 riders in Kenya, Uganda, and Tanzania, focusing on road safety and first aid for boda boda riders.
Watu’s commitment to ESG principles is a testament to its dedication to fostering financial inclusion, environmental sustainability, and socio-economic development across Africa. The company’s inaugural sustainability report sets a strong foundation for future initiatives aimed at creating a more inclusive and sustainable future.
