Dar es Salaam. A growing push towards cleaner and more accessible urban transport is being accompanied by rapid expansion in asset financing, with Watu Credit Tanzania reporting that it has funded more than 13,000 gas-powered three-wheelers (Bajaj) and introduced several hundred electric units in recent years.
The company says the financing model has enabled thousands of young Tanzanians to enter the transport sector, though it also reflects a broader shift towards income-generation lending tied to specific assets rather than traditional unsecured credit.
Speaking at the 50th Dar es Salaam International Trade Fair, Acting General Manager Seuri Kwoko said the firm’s strategy has centred on linking credit to productive tools such as motorcycles, three-wheelers and smartphones, which borrowers are expected to use to generate income while repaying loans.
“We have spent the past five years focusing on solutions that create economic opportunities rather than simply providing loans,” he said.
Mr Kwoko said Watu Credit has disbursed more than Sh700 billion over the period, financing over 30,000 motorcycles and Bajajs in total, alongside smartphone loans aimed at expanding digital access.
He said more than 13,000 gas-powered Bajajs have been financed to date, with between 400 and 500 electric three-wheelers introduced as part of an emerging shift towards cleaner transport, which the company says it intends to scale up.
The model allows customers to make an initial deposit before repaying the balance over time, after which ownership is transferred, a structure the company describes as central to its approach to financial inclusion.
However, the reliance on asset-backed lending also places borrowers in a position where income stability is closely tied to daily earnings from transport services, a sector often affected by fuel costs, maintenance expenses and fluctuating demand.
Mr Kwoko said the firm also provides support in cases where borrowers face disruption.
“If a customer’s motorcycle is damaged, we assist them in getting it repaired so they can return to work and continue earning an income,” he said.
Beyond financing, the company runs training programmes in financial literacy, credit management, road safety and responsible borrowing, aimed at improving repayment discipline and business sustainability among clients.
On the environmental front, Mr Kwoko said the introduction of electric Bajajs aligns with broader national efforts to promote cleaner mobility, although the sector is still at an early stage of adoption compared to fuel-powered alternatives.
An exhibitor, Ali Mchongwe, said access to financing had enabled him to enter the transport business after lacking sufficient capital to purchase a vehicle outright.
“I obtained a Bajaj through Watu, and it has given me the opportunity to earn an income by providing transport services,” he said.
He said the repayment structure allows individuals with limited savings to start small businesses, gradually working towards full ownership of the asset.
“If you honour the loan agreement and complete your repayments, the vehicle becomes yours and you continue growing your business,” he said.
As Tanzania continues to promote youth employment and cleaner transport solutions, the expansion of asset-based financing is likely to remain a key feature of the informal transport economy, even as questions persist around affordability, long-term sustainability and the resilience of borrowers in a volatile income sector.
