FMO, the Dutch entrepreneurial development bank, announced the signing of USD20 million of loan facilities to two new clients, Watu Credit Kenya Limited (USD15 million) and Watu Credit Uganda Limited (USD5 million). FMO’s loan facilities were financed through MASSIF, the financial inclusion fund FMO manages on behalf of the Dutch government, and will be used to increase access to financial services and enable income generation opportunities for unbanked young people.
Watu Credit is an Asset FinTech providing loans for "boda bodas" (motorcycle taxis) across Africa. Established in 2015, Watu has quickly grown to become one of the leading providers of two and three-wheeler financing across the continent, with the largest market share in Kenya and Uganda. Watu’s model is highly impactful, focusing its financing on unbanked and underserved individuals, creating income opportunities for aspiring entrepreneurs.
In addition to financing, FMO will also support Watu in integrating client protection principles throughout their operations and with technical assistance to conduct customer impact surveys to ensure they deliver impact and improved livelihoods for their clients.
“We are excited about this partnership with Watu Credit as it is in line with MASSIF and FMO’s strategy of advancing financial inclusion among underserved communities. The Watu team has built a very strong offering that addresses the needs of young entrepreneurs in Kenya and Uganda, enabling them to improve their livelihoods and become self-employed. We look forward to providing support through our Capacity Development Program to enhance safety training as well as consumer protection procedures, both of which will further strengthen Watu’s proposition” – Jeroen Harteveld, Portfolio Manager MASSIF at FMO
“FMO’s funding will help Watu transform urban mobility and the financial lending landscape across our key markets. We believe in a world where financing is accessible, far-reaching and inclusive. With FMO’s support, we will continue to provide opportunities for mobility entrepreneurs to build successful businesses and change the course of their lives.” - Andris Kaneps, CEO at Watu Credit.
