How digital financial tools are creating more opportunities in East Africa

Digital financial tools and clean mobility solutions are driving profound changes across Africa’s informal economy, according to Watu’s 2024 Sustainability Report.

The report highlights how financing smartphones, electric vehicles (EVs), and income-generating assets is creating tangible social, economic, and environmental impact, particularly in East Africa, including Uganda.

Watu, an Asset FinTech company, drives financial inclusion and mobility across Africa by offering loans for two and three-wheelers, car financing, and logbook loans.

Through these services, the company enables entrepreneurship and enhances access to transport. With a strong focus on women, youth, and rural communities, Watu also advances the adoption of electric vehicles (EVs) under its Watu E-mobility initiative.

In 2024 alone, the company financed 1.4 million smartphones, connecting millions of underserved individuals to mobile banking, e-commerce, and other digital services.

Beyond simply providing devices, the initiative has delivered measurable economic benefits. In Uganda, 54% of smartphone users reported increased earnings, while many launched small digital businesses or accessed mobile banking for the first time.

Kenya and Tanzania reported similar outcomes, with 40% and 64% of customers, respectively, seeing income growth.

“This is our second sustainability report, reflecting how sustainability is not separate from growth but at the heart of how we deliver impact responsibly. Through this, we remain committed to financing underserved communities with income-generating assets, advancing digital financial inclusion, and fostering e-commerce,” said Andris Kaneps, CEO of Watu.

Mobility financing drives entrepreneurship

Mobility financing is playing an equally significant role in economic empowerment. In 2024, Watu financed over 80,000 motorcycles, tuk-tuks, and other income-generating vehicles, providing entrepreneurs with means to transport goods, offer transport services, and generate sustainable income.

Electric vehicle adoption is accelerating, with 2,193 EVs financed across East Africa,a 108% increase from 2023. Supported by battery-swapping stations in major markets, these vehicles avoided 5,483 tonnes of CO₂e emissions, exceeding Watu’s operational footprint and demonstrating the environmental benefits of cleaner mobility.

Rwanda was a key driver of EV uptake, highlighting the impact of policy and infrastructure on sustainable transport.

Empowering women and promoting gender equity

Watu has also made significant strides in gender inclusion. Women now account for 40% of customers, while one in three management positions is held by women. Female employment across all markets surpassed 43%, reflecting real progress in workplace inclusion and leadership opportunities.

“Women represent 40% of our customer base today. Our mission is to grow that number by ensuring access to both mobility and digital finance solutions is equitable and sustainable for women entrepreneurs,” said Kaneps.

In Tanzania, 16% of smartphone customers launched new businesses, many of which were women-led in trade and digital marketing. This demonstrates the direct link between digital access and entrepreneurial growth, particularly for female-led micro-enterprises.

Safety and workforce development

Safety and training are central to Watu’s approach. Over 20,500 riders and staff were trained in road safety across Kenya, Uganda, and Tanzania in 2024.

Community outreach initiatives in Uganda reached 1,600 schoolchildren and more than 1,000 clients, resulting in a reduction of accident rates from 4.9 to 4.3 per 1,000 clients. Watu Shule in Uganda has proven especially effective, with graduates reporting increased confidence and safer road behaviour.

Employee development was also strengthened, with average training hours per staff member tripling compared to 2023, improving skills, operational capacity, and organisational resilience.

Economic contributions and transparent governance

Economically, Watu recorded USD 231 million in revenue in 2024, up 67% from 2023, driven by smartphone financing and regional scale-up. Wages and salaries totalled USD 31 million, while over USD 8 million in taxes were paid, supporting local economies and driving job creation.

Governance and accountability remain key pillars. Watu achieved Bronze-level Client Protection Certification from MicroFinanza Rating (MFR) in Kenya, Uganda, and Tanzania, becoming one of the first institutions in the region to adopt these global standards.

ESG reporting was further enhanced through a customised data platform that automatically calculates Scope 3 emissions from financed vehicles, improving transparency, comparability, and credibility.

Impact beyond numbers

The 2024 report introduced new metrics to measure tangible outcomes. The Digital Services Impact Score (DSIS) revealed that 40.4% of customers actively use smartphones for financial, educational, and healthcare services.

Meanwhile, the Smartphone Financing Income Impact Rate (SFII) showed that 35.2% of users reported direct income gains from smartphone ownership, whether through digital trade, mobile business tools, or access to new work opportunities.

Since 2015, Watu has financed over 2 million loans and impacted more than 8 million lives, employing 2,465 staff across East Africa.

Looking Ahead

The 2024 Sustainability Report demonstrates that digital access, clean mobility, and gender-inclusive financing can transform the informal economy.

By linking growth with social and environmental outcomes, Watu’s initiatives show how inclusive finance can empower communities, promote entrepreneurship, and reduce environmental impact, creating a sustainable model for economic development across Africa.