π Tender Overview
Website customer/investment
https://watuafrica.com/
Region
Africa
Country
Uganda
Sector
Energy
Publication date
11/1/2024
Effective date
3/20/2025
Total FMO financing
USD 5.00 MLN
Funding
Building Prospects
Environmental & Social Category
(A, B+, B or C)
B
Who is our customer
The transaction concerns a USD 5 mln committed senior bilateral loan ( Facility ) plus USD 5 mln uncommitted senior bilateral loan ( Uncommitted Facility ) to fund the Borrower's investment in electric vehicle batteries and battery swapping stations infrastructure in Uganda. The Borrower is 100% owned by Watu Holdings Limited ( Watu ). Founded in 2015, Watu is a leading provider of motorcycle financing in Uganda and Kenya and one of the key players in the PAYGO space across Sub Saharan Africa, with over 1 mln loans and presence in Kenya, Tanzania, Rwanda, Nigeria, Sierra Leone and DRC. Watu offers product-acquisition finance to households that are not able to access traditional financial services.
What is our funding objective
The objective of FMOβs financing is to fund the Borrowerβs investment in electric vehicle batteries and battery swapping station infrastructure across Uganda.
Why do we fund this investment
The lack of clean and affordable mobility solutions holds back the shift to a green transportation system in Uganda, a least-developed country (LDC). This transaction addresses this deficiency and aligns with FMOβs Energy and overall strategy. The investment is labeled 100% Green and 100% Reducing Inequalities.
What is the Environmental and Social categorization rationale
This concerns an E&S B categorized investment. Activities come with potential limited adverse environmental and social (E&S) risks associated with labor conditions, product safety, and waste management. The project shows exposure to IFC Performance Standards (PS) 1 - Assessment and Management, PS 2 - Labor Conditions, PS 3 - Resource Efficiency and Pollution, and PS 4 - Community Health and Safety, and Security. PS 5 - Land Acquisition, PS 6 - Biodiversity), PS 7 (Indigenous Peoples, and PS 8 Cultural Heritage are deemed not applicable.