Running a business does not only require capital as most people tend to think. Instead, it requires a collection of other several things including innovativeness and it is exactly what Félix Nkundimana needed to advance his business. Having observed that many Rwandans prefer consuming products imported from other countries, as they believe they are of better quality, Nkundimana, the CEO at JALI Finance, introduced an idea of encouraging more people who were interested but couldn’t readily pay to take them on credit. This started with motorcycles and it is set to expand to other products by the end of this year. Nkundimana had a chat with Sunday Magazine’s Joan Mbabazi about the birth of the idea, how many motorcyclists have benefited from it and the way forward. How does the consumption of ‘Made-In-Rwanda’ products on credit work? We believe that if we have two products, for instance; one made in Rwanda and another made from either Kenya or China, we offer credit on the Made in Rwanda products so that more locals can pick interest. So far, we have started with motorcycle leasing. Here motorcyclists approach motorcycle companies and fill an application form, we do the due diligence, which enables them to get the motorcycle on credit. They are required to pay the money within a period of 18 months. It enables them to work as they pay. How do you follow up motorcyclists to make sure that they pay? We have built a system that keeps track of each one of them because we only give them the bikes on credit after collecting enough information about them. A motorcyclist is required to have a driving license, valid health insurance, at least one-year experience as a motorist, guarantor identity card, among others. Some of the motorcycles assembled locally that someone can get on credit. / Courtesy After screening applications, we visit them and handover the motorcycles to only those that have met all the necessary requirements. How often are the motorcyclists supposed to pay per month? They are supposed to pay some amount every Monday, however, others prefer paying some small portions every day. How much money are they required to pay altogether? We offer them a full package that costs about Rwf1.7m, which includes, a new motorcycle, plate number, two helmets, motorcycle taxi insurance for the duration of the loan, RURA authorization for the duration of the loan, GPS tracker, smartphone, one-year guarantee, income tax and trading license for the duration of the loan, and ownership transfer fees after the loan repayment. Why did you choose motorcycles in the beginning? We didn’t have the capacity financially to consider every product since we had just started, we needed a lot of capital. However, investors came on board to assist. We are working on a mobile app that will enable people to sign in and consume ‘Made in Rwanda’ products on credit and pay after a specific period of time. Tell us more about the mobile app and how it will work The mobile application will be a self-service tool through which a consumer will be able to login and select the ‘Made In Rwanda’ product or service that they are interested in. We will fix a percentage on different items and we will have the necessary information on the applicants from the signup that will help us approve and agree if the repayment is in installments or one-month-go. It will be launched towards the end of December. So far, how many motorcyclists have benefited from this service? We have given out over 174 motorcycles which means more than 174 jobs have been created. We plan to double the number in 2020. Many motorcyclists can now attest to how easier it is to own their own businesses unlike before where they were riding their bosses’ motorcycles and were required to provide a specific amount of money every day. What more should we expect from you in the future? We are designing other financial products that will bring a competitive advantage to local factories as compared to imported goods. We are looking forward to playing a significant role in job creation. Let us support our own products because we are talented and we can make almost everything here. That is the spirit that will keep us growing, and showcase our products to different countries. editor@newtimesrwanda.com
