Boda Boda Taxi Service Livelihood Project

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Focus Areas: Livelihoods

This project saw the establishment of a community-owned and operated taxi service in Kampala. Its aim is to generate income to support families in meeting their day-to-day financial needs. The income generated from the Bodaboda project has also supported Federation activities, especially those activities aimed at mobilising and monitoring saving schemes in Kampala. The Federation currently employs seven youths as boda boda riders, with gross income of the seven taxis reaching US$650 per month. The Federation faced a number of challenges in relation to the management of the project because of strict new regulations on boda boda and the tendency for police to confiscate the bodas of drivers committing an offence. They decided to sell the boda bodas and purchase a car to support Federation monitoring work and also generate income through hiring.

Location: Kampala, Uganda

Deliverables:

The seven bodas bodas have been sold and a car has been purchased. The car is hired out in addition to being utilised for Federation activities namely monitoring and organising work. 

Community capacity:

The project has helped regional Federation leadership conduct their monitoring and organisational work more efficiently.

Scale:

The Uganda Federation believes the project has the capacity to be scaled to a national level through reinvesting the income generated through car hire fees. Indeed, they argue, every region of the Federation will benefit from this project by reinvesting the money generated however, due to the lengthy distances that the car is driven, particularly for Federation work, maintainence expenses are higher than expected. It is still hoped that the project can be scaled up through the purchase of additional vehicles in this and other regions even though money generated from this project is sometimes ploughed back into federation activities and thus hindering the profitability and expansion of the project. 

Impact:

This Federation taxi has demonstrated that where the Federation members have their own means of transport, they can save costs in maintaining and sustaining the activities of the Federation especially in areas in which the cost of public transport is high. The project is saving the Federation some resources during exchanges that involve airport transport.

Finance:

SDI Contributions:

SDI contributed US$10,000.

Resources Leveraged:

The income generated from the hiring of the car has been leveraged to support the application for a loan to Kabale to complete their sanitation unit. 

Market Generated Returns:

Since the car was purchased, it has made approximately UGX2,500,000. This money has been used to support the work of the National Working Group and regional Federation leaders. 

Skye Dobson skye@sdinet.org (+256) 312 107 643 View Website
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Project information updated: 27 October 2015

Project in depth

Detailed Information

This project sees the Ugandan Alliance of National Slum Dweller’s Federation of Uganda (NSDFU) and ACTogether create an income generating project. The project grew from the realization that the Federation needed funds to sustain its activities, cover needs and transport leaders and members. The Federation shared this idea with head of SDI, Jockin Arputham, at a slum upgrading conference in Uganda in August 2011.  
 

Deliverables:

The initial plan was to purchase seven boda bodas. However, after their purchase the Federation realised, for a number of reasons one of which was the planned scrapping of the boda bodas, that it would be better for the boda bodas to be replaced with a car. The boda bodas were sold and a car was subsequently purchased. 

Community capacity:

The intention was to improve mobilisation and monitoring of saving groups by Federation leaders in Kampala has improved as result of eased transport and accessibility. The Federation members who are employed by this project have improved their savings skills.

The Federation’s core leadership has put together a team of four people to manage the project. This team is responsible for identifying, purchasing, registering and day-to-day management of the project. The team reports to the major Federation core team which in turn reports to the Federation National Executive Committee (NEC). A project bank account was opened in Development Finance Company of Uganda (DFCU) Bank, in Kampala and is operated by the project management committee (PMC). Money generated from the service is banked daily by the operators who in turn present the deposit slips to the project management committee on a weekly basis. The Federation intends to reinvest the income generated from this project to purchase more vehicles so that other regions can benefit from this project. Mobilisation and monitoring of saving groups by Federation leaders in Kampala has improved as a result of improved access to transport. The Federation members who are employed by this project have improved their savings both daily and towards Suubi, the national urban poor fund.

Scale:

The Uganda Federation believes the project has the capacity to be scaled to a national level through reinvesting the income generated from the excising seven bodaboda. Indeed, they argue, every region of the Federation will benefit from this project by reinvesting the money generated from the exciting seven boda boda. The problem, they say, is that currently there is a plan to eliminate bodaboda taxi in the capital Kampala and yet that is where they generate a lot of income. The boda boda project that started in Kampala aims at expanding to all regions in which the Federation operates. However, there are constraints to scaling the project because money generated from this project is sometimes ploughed back into federation activities and thus hindering the profitability and expansion of the project.

Nevertheless, even after the seven boda bodas were sold, it is still envisioned that the project can be scaled to the national level. 

Impact:

This project was envisioned by the Uganda Federation as a better way to subsidise the Federation program funding and as a source of employment for Federation members. It heralds a new era in the Federation's history; one in which the Federation is not reliant on donor funding but it combines this funding with the revenue it generates itself. 

Finance:

SDI Contributions:

SDI contributed US$10,000.

Market Generated Returns:

It is anticipated that revenue will be generated in the form of car hire fares. 

ACTogether. (2015). National Slum Dwellers Federation of Uganda Continues to Bring Hope to the Urban Poor: The Suubi Event. [Online]. Available: http://actogetherug.org/index.php?option=com_k2&view=item&id=222%3Anational-slum-dwellers-federation-of-uganda-continues-to-bring-hope-to-the-urban-poor-the-suubi-event&Itemid=176.
 
Howe, J. (2002). Boda Boda - Uganda's Rural and Urban Low-capacity Transport Services. [Online]. Available: http://www.transport-links.org/transport_links/publications/publications_v.asp?id=792&title=Boda+Boda+-+Uganda%27s+rural+and+urban+low-capacity+transport+services%2ECODATU+X+Conference%2C+Lome%2C+Togo%2E+12+-+15+November%2C+2002%2E
 
Makau, J. (2010). UPFI Loan to Amplify Work of Uganda Federation. [Online]. Available: http://sdinet.org/2010/05/upfi-loan-to-amplify-work-of-uganda-federation.
 
Redpepper. (2013). KCCA Finalises Plans to Throw 145,000 Boda Boda Cyclists out of Kampala. [Online]. Available: http://www.redpepper.co.ug/kcca-finalises-plans-to-throw-145000-boda-boda-cyclists-out-of-kampala/.

Funding Information

Raised:

$10,000.00

Implementing Partners

AcTogether Uganda


National Slum Dwellers Federation of Uganda (NSDFU)