MICROCAPITAL BRIEF: Tugende Expands Leasing Products to Finance Boat Engines for Fishing in Uganda

Tugende, a technology-driven, lease-to-own firm, recently expanded its product portfolio to finance boat engines for informal workers in the fishing industry in Uganda. The company provides “financing for income-generating assets,” such as motorcycle taxis; associated resources, such as insurance and training; and digital profiles demonstrating clients’ repayment histories in Kenya and Uganda. Tugende expects to increase its social impact as more women have been interested in financing boat engines relative to the firm’s other products. Meanwhile, the role of fishing in the food sector makes the industry relatively resistant to economic disruptions, such as that caused by COVID-19. While the terms of the engine leases have not been published, the firm’s motorcycle leases run up to two years in length.

Tugende, whose name can be translated as “Let’s Go,” has opened 17 branches in Uganda since its launch in 2012. In 2019, it expanded to Kenya, where it opened its first branch in the city of Kisumu. The company has served approximately 47,000 customers as of 2021.

By Bradley Shulman, Research Associate

Sources and Additional Resources

Verdant Capital press release
https://verdant-cap.com/tugende-launches-boat-engine-financing-further-strengthening-its-product-portfolio/

Tugende homepage
https://gotugende.com/

Previous MicroCapital article on Tugende
https://www.microcapital.org/microcapital-brief-motorcycle-leasing-company-tugende-raises-10m-in-debt-equity-for-growth-in-uganda-kenya/

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