S A Connect

voda boda project

by S A CONNECT

Tanzania

Transport

Vodacom Tanzania

VodaBoda - Electric Bikes

Private Equity

Country

Sector

Client

Project Name

Investment Type

ABOUT s a connect

S A Connect, as a private equity holding entity in Tanzania, has carved a niche in the acquisition and enhancement of businesses with Vodacom Tanzania. Leveraging their extensive network, abundant resources, and specialized knowledge, they excel at bolstering businesses, particularly within burgeoning markets.

S A Connect’ s investment strategy is rooted in identifying and nurturing high-potential ventures that demonstrate sustainable growth prospects and scalability. By infusing capital and strategic guidance, S A Connect aims to propel these businesses to new heights, driving innovation and economic development in the region.

The company's approach is centered on honing operational efficiencies, endorsing global scalability, and spearheading pivotal growth endeavors, positioning them as a potent entity in the private equity arena. With a commitment to responsible investing, S A Connect also places a strong emphasis on environmental, social, and governance (ESG) criteria, ensuring that their investments not only yield financial returns but also contribute positively to society and the planet.

As S A Connect continues to expand its portfolio and impact, it remains dedicated to fostering a sustainable and prosperous future for Tanzania and beyond, solidifying its status as a leader in the private equity space.

ABOUT our founder & ceo

Sharif A. Aidarus

Sharif, a U.S. citizen with Somali origins, has been residing in Tanzania since 2011. He possesses a deep understanding of the East African socio-economic landscape and boasts an extensive educational background, including a postgraduate degree from Heidelberg University and a master’s in project management from George Washington University.

With over 20 years of experience in banking, consultancy, and project management, Sharif has honed his skills as a skilled dealmaker. He has also served as a former IRS Federal Credit Union executive in Washington, D.C., U.S. Sharif's expertise in project management, business development, and international logistics, coupled with his ability to lead and mentor, has significantly contributed to his professional success. Sharif is a polyglot, fluent in five languages: English, Italian, Arabic, Kiswahili, and Somali.

In addition to his professional achievements, Sharif is actively involved in various community and social initiatives. He is a strong advocate for sustainable development and is dedicated to fostering economic growth and improving the quality of life in East Africa. Sharif's multicultural background and diverse skill set make him a valuable asset in the global business landscape, where he continues to make a positive impact through his work and community involvement.

IntroducTION & OVERVIEW

What is A Boda BoDa?

In the vibrant and lively streets of East Africa, the term "boda boda" has emerged as a ubiquitous phrase, weaving its way into the very fabric of daily life across the region. But what underlies this term? At its essence, a boda boda is a motorcycle taxi service that has become a cornerstone of urban and rural transportation across several African nations, notably Kenya, Uganda, and Tanzania. This mode of transport is not just a means of getting from A to B; it represents a vital artery in the socio-economic landscape of the region.

According to the TICD Report, the boda boda industry plays a pivotal role in supporting the livelihoods of the youth, contributing significantly to their daily mobility and enabling them to engage in a myriad of socio-economic activities. In fact, it is reported that boda bodas account for an impressive 42.2% of the daily transportation needs linked to these activities.

Zooming in on Dar es Salaam, the bustling economic hub of Tanzania, we find that over three million boda boda riders make up a staggering 60% of the country's total boda boda workforce. This figure starkly contrasts with the combined total of the remaining cities, which share the other 40%. This disparity underscores the central role that Dar es Salaam plays in the boda boda ecosystem, highlighting not only the city's dense population but also the dynamic economic opportunities that draw people into this line of work.

Through this lens, the boda boda industry emerges not merely as a transport solution but as a vibrant socio-economic engine that fuels the dreams and daily lives of millions, offering a unique glimpse into the resilience and entrepreneurial spirit of East Africa.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

Vodacom's strategic vision for this initiative is to significantly bolster its data and voice coverage across the region. In a dynamic approach to realize this vision, Vodacom is set to empower riders by distributing smartphones that come with a generous 3 GB internet data bundle and delivering comprehensive training sessions. This initiative is strategically designed to not only enhance connectivity for the riders but also to significantly broaden Vodacom's customer base, which impressively encompasses over 13 million users, accounting for around 20% of the population.

Going beyond mere connectivity, Vodacom is taking a holistic approach to rider welfare by introducing insurance plans specifically tailored to cover medical expenses in the unfortunate event of accidents. This thoughtful provision underscores Vodacom's deep-rooted commitment to ensuring the safety and well-being of its riders, thereby fostering a robust and supportive ecosystem within the project.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

Through the strategic alliance between Vodacom and S A Connect, we are positioned to harness Vodacom's extensive resources to broaden our outreach significantly. This partnership not only grants us access to their unparalleled expertise in security and marketing but also paves the way for making this venture widely accessible. A pivotal aspect of this unique collaboration involves a green transition from traditional combustion-engine motorcycles to electric bikes, utilizing Vodacom's sophisticated collection systems and their established trust with riders.

This trust has nurtured a comprehensive network of riders, opening doors to a previously untapped market characterized by its focus on affordability and cost savings, particularly appealing to the below-average income demographic.

This forward-looking initiative stands on the brink of significant growth under Vodacom's stewardship. The synergistic partnership strategy between S A Connect and Vodacom, coupled with the strategic implementation of Vodacom's systems, is poised to generate a substantial return on investment. In the subsequent presentation, we will explore in detail how partnering with Vodacom can establish a secure and efficient operational framework, marking a milestone in our journey towards sustainable and inclusive mobility solutions.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

The Arrangement

The successful execution of contractual commitments with Vodacom is crucial for the project's triumph, impacting significantly in two fundamental aspects: corporate strategy and sales & marketing efforts. This entails a seamless integration of Vodacom's vast resources and expertise into our project framework, enhancing our corporate objectives through strategic alignment and bolstering our sales and marketing strategies with Vodacom's innovative approaches and expansive network. Such collaboration not only propels our project towards achieving its goals but also amplifies its potential impact, setting a new benchmark for excellence in operational and marketing execution. Through this partnership, we leverage Vodacom's industry-leading capabilities to elevate our project, ensuring a synergistic achievement of both immediate objectives and long-term ambitions.

Marketing & Sales

Utilizing its impressive customer base of over 13 million users and widespread network capabilities, Vodacom is uniquely poised to launch extensive advertising initiatives. The company intends to harness an array of communication mediums, from targeted SMS campaigns to dynamic engagements across multiple social media platforms, ensuring a broad and effective promotion of the service. This strategic approach will leverage Vodacom's far-reaching influence to maximize visibility and engagement, tapping into a diverse audience to elevate the service's market presence.

Corprorate Management

As a leading Mobile Network Operator (MNO), Vodacom boasts an extensive array of resources and a multifaceted product suite designed to meet the demands of both elite clients and the wider population in their everyday lives. This current initiative is meticulously crafted to cater to the broad spectrum of needs among the general populace. Leveraging its comprehensive and customized product offerings, Vodacom emerges as a crucial catalyst in achieving this goal. The company's strategic positioning enables it to bridge digital divides and foster connectivity, underscoring its role as a key facilitator in enhancing accessibility and enriching the daily experiences of its diverse user base.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

Key offerings within Vodacom's portfolio

Vodacom's suite of services is meticulously designed to cater to a wide range of customer needs, encompassing both individual and enterprise solutions. These offerings include:

M-PESA: A revolutionary mobile money platform that enables users to conduct a variety of financial transactions with ease and security, transforming the way money is moved and managed.
SONGESHA: An innovative lending application that provides users with quick and reliable access to credit, empowering them to meet their financial needs promptly.
Voice Communication Services: High-quality call solutions that ensure clear and consistent voice connections, facilitating seamless communication for both personal and business purposes.
Data Connectivity Services: Robust and reliable data services offering high-speed internet access, supporting everything from basic web browsing to complex business operations.
PAISHA: A versatile financial service (assumed), designed to further enhance Vodacom's commitment to providing comprehensive transactional solutions to its users.

Through these key offerings, Vodacom not only addresses the fundamental communication and financial needs of its clientele but also enriches their daily lives with innovative and accessible technology solutions.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

GROWTH

Exclusivity

Vodacom's initiative is marked by an exclusive partnership with S A Connect, establishing a unique and focused contractual alliance specifically within the boda boda industry. This exclusivity ensures that Vodacom engages solely with S A Connect, setting a clear boundary against collaborations with other firms in this niche market. Such a strategic arrangement highlights the commitment of both Vodacom and S A Connect to forge a strong, singular path forward, leveraging their combined strengths to innovate and lead within the dynamic landscape of the boda boda sector. This partnership not only signifies a dedicated effort to enhance service delivery and market presence but also positions the collaboration as a pivotal force in the industry's evolution.

Branding

As one of the leading Mobile Network Operators in Tanzania, the strategic branding of the project and the electric bikes is of paramount importance. This approach will not only enhance brand visibility and extend market penetration in operational regions but will also significantly contribute to cultivating positive relationships with stakeholders. By leveraging its extensive network and brand equity, the initiative is positioned to make a lasting impact, driving both consumer engagement and stakeholder trust across the board. This strategic branding effort is essential for establishing a strong presence in the market and fostering long-term partnerships within the boda boda industry.

PARTNERSHIP WITH VODACOM

vodacom & vodaboda

27,000 Agnets

Leveraging its expansive network of over 27,000 agents throughout Tanzania, Vodacom secures a formidable strategic position for promoting its services. This vast network of agents does more than just bolster advertising initiatives; it significantly improves service accessibility for riders. By facilitating easy payment transactions and ensuring the efficient issuance of receipts to passengers, Vodacom enhances the overall user experience. This network acts as a critical infrastructure in bridging the gap between technology and convenience, making it easier for riders to manage their earnings and for passengers to enjoy a smooth and hassle-free service. This synergy between advertising reach and operational efficiency underscores Vodacom's commitment to innovation and customer satisfaction in the Tanzanian market.

Deployment

Vodacom's rollout of electric bikes will follow a meticulously planned process. Engagement with prospective riders will be initiated through direct outreach and targeted advertising on various social media platforms, ensuring a wide-reaching impact. This phase of communication will comprehensively cover the terms and conditions of participation, respond to any inquiries, and highlight the advantages of being part of the project. Subsequent to this initial engagement, Vodacom will introduce an extensive training program for the riders. This program will not only cover operational aspects of the e-bikes but will also place a strong emphasis on health and safety protocols, aiming to cultivate a network of riders who are not only well-informed about the project's objectives but are also equipped with the knowledge to ensure their own safety and that of their passengers.

problem solving

The Vodaboda initiative is a multifaceted approach to addressing three pivotal challenges facing the country, with a strong focus on environmental sustainability at both local and national levels. This innovative program acknowledges the significant environmental degradation caused by traditional fuel-powered motorcycles and advocates for a shift to electric vodabodas as a solution. Conventional motorcycles are notorious for their high emissions of carbon dioxide and other pollutants, which exacerbate climate change and pose severe public health risks. In stark contrast, electric vodabodas offer a clean, zero-emission alternative, aligning with global efforts to combat climate change and foster a transition to renewable energy sources.

The adoption of electric Vodabodas marks a crucial step in reducing Tanzania's carbon emissions and enhancing air quality, which is essential for safeguarding public health. This shift towards electric mobility is expected to spur economic growth by encouraging the adoption of clean technology and creating new job opportunities in the green economy sector. By adopting electric Vodabodas, communities can actively participate in shaping a sustainable future, reducing reliance on fossil fuels, and contributing to the global transition towards a more eco-friendly and resilient transportation system.

Moreover, the widespread use of electric Vodabodas can lead to a more inclusive and equitable society by providing affordable and accessible transportation options for all, especially those in underserved areas. It also paves the way for innovation in transportation infrastructure, such as the development of charging stations and maintenance facilities, further stimulating local economies.

This initiative not only addresses immediate environmental and health concerns but also lays the foundation for long-term sustainable development and prosperity. By integrating electric Vodabodas into the transportation network, Tanzania can position itself as a leader in sustainable mobility in Africa.

problem solving

Furthermore, the project aims to enhance employment and entrepreneurial opportunities within the community. Boda bodas are a vital source of income, providing direct employment through the hiring of individuals as riders who often lease motorcycles for passenger transport. The project also broadens entrepreneurial prospects for those facing barriers to formal employment or lacking the capital to independently purchase bikes. By facilitating the transfer of bike ownership to riders after a 24-month period, the initiative empowers these individuals to transition from lessees to owners, thereby becoming entrepreneurs and asset holders. This approach not only fosters economic independence but also contributes to the overall economic development of the community.

In response to the escalating fuel prices in Dar es Salaam, the Vodaboda project has been developed as an innovative transportation model specifically designed for low- and middle-income earners. By introducing battery-operated bikes, the initiative offers a cost-effective, environmentally friendly, and sustainable mode of transportation, aiming to ease the immediate financial strain on consumers. The adoption of electric bikes is anticipated to substantially reduce daily operating costs for riders, support environmental conservation efforts, and create new job opportunities in the green economy.

Furthermore, the Vodaboda project is poised to transform urban mobility in Dar es Salaam by reducing traffic congestion and lowering carbon emissions, contributing to a cleaner and healthier city. The initiative also includes training programs for riders, ensuring they are equipped with the necessary skills to safely operate and maintain the electric bikes. By providing an affordable and accessible transportation alternative, the Vodaboda project seeks to enhance the quality of life for residents, promote social inclusion, and foster a more sustainable urban environment.

operatıonal detaıls

Charging Ports

Optimal Charging Port Locations for Maximum Efficiency

The strategic positioning of charging ports is paramount in maximizing accessibility and convenience for e-bike riders. An optimal strategy involves situating these ports near petrol stations, leveraging their strategic locations and high accessibility for riders. Petrol stations, being well-distributed and easily reachable, offer an ideal backdrop for charging ports, ensuring riders can effortlessly recharge their bikes.

Incorporating charging ports within an 80km radius throughout Dar es Salaam is recommended to guarantee that riders can access these facilities swiftly and without hassle. This radius is specifically designed to cater to the daily operational range of e-bikes, ensuring riders are always within reach of a charging station.

Furthermore, situating charging ports in high-traffic areas such as malls and popular gathering spots presents an innovative solution. These locations are hubs of activity where significant passenger pickups and drop-offs occur, making them strategic points for charging ports. By aligning charging port placement with these areas, we not only facilitate convenience for riders but also enhance the service's visibility, encouraging more widespread adoption of eco-friendly transportation options. This approach underscores a commitment to operational efficiency, rider convenience, and sustainable urban mobility.

operatıonal detaıls

e-bıkes vs. gas motorcyles

A COMPARISON BETWEEN ELECTRIC AND GAS MOTORCYCLES

The shift towards electric bikes in the motorbike taxi industry is propelled by a powerful synergy of economic incentives, environmental stewardship, and enhanced operational effectiveness. This transition is not merely a trend; it represents a significant evolution in the transportation sector, offering riders substantial financial gains while simultaneously advancing companies' strategic positioning for enduring success. The adoption of e-bikes stands at the forefront of innovation, embodying a commitment to sustainability and efficiency that resonates with the growing consumer demand for eco-friendly solutions. By embracing electric mobility, the industry sets a new standard for environmental responsibility, market adaptability, and economic opportunity, marking a pivotal step towards a sustainable future in urban transportation.

Economic Advantages

Zero Fuel Costs: Eliminates the expense associated with gasoline, offering direct financial relief.

Reduced Maintenance Costs: Electric bikes are simpler and cheaper to maintain, translating into significant savings.

Substantial Savings for Low-Income Populations: Savings of $2 to $4 per day can make a considerable difference, enhancing the economic well-being of lower-income riders.

operatıonal detaıls

e-bıkes vs. gas motorcyles

A COMPARISON BETWEEN ELECTRIC AND GAS MOTORCYCLES

Environmental Impact

Lower Greenhouse Gas Emissions: Electric bikes contribute to a substantial reduction in emissions that cause global warming.

Zero Tailpipe Emissions: Completely eliminates the air pollutants directly released by gasoline-powered engines.

Energy Efficiency: Utilizes renewable energy sources more efficiently compared to traditional fossil fuels.

Noise Pollution

Significantly Reduced Noise Pollution: Electric bikes offer a quieter operation, leading to less noise pollution in urban environments.

Quiet and Pleasant Working Environment: Riders and communities benefit from a more serene and less stressful atmosphere.

operatıonal detaıls

e-bıkes vs. gas motorcyles

A COMPARISON BETWEEN ELECTRIC AND GAS MOTORCYCLES

Maintenance Benefits

Simpler Mechanical Systems: The absence of complex internal combustion engines leads to lower maintenance needs and costs.

Reduced Wear and Tear: Electric bikes experience less mechanical degradation over time, extending their lifespan.

No Oil Changes Required: The electric drivetrain eliminates the need for oil changes, further reducing maintenance costs.

Cost-Effective Diagnostics: Diagnosing issues with electric bikes is generally less expensive, thanks to their simpler electronic systems.

These advancements elevate electric bikes to an unparalleled status, making them the preferred option for both riders and businesses. Beyond the immediate benefits, this transition dovetails with wider objectives of promoting sustainability, enhancing operational efficiency, and improving the quality of urban life. By adopting electric bikes, the industry not only contributes to reducing carbon emissions and noise pollution but also fosters a more sustainable and livable urban environment. This strategic alignment underscores a commitment to future-proofing urban mobility, demonstrating a forward-thinking approach that balances economic viability with environmental responsibility and social well-being.

Acacia Estates Offices,

1st floor,

84 Kinondoni Road,

P.O Box 38568, Dar Es Salaam, unıted republıc of Tanzania

Email: scerif30@gmail.com

mob: +255 755 49 38 96