Baisikeli Ugunduzi

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Baisikeli Ugunduzi – Swahili for ‘modern bicycle’ – designs and produces high quality bicycle components WITH the millions of rural poor who depend on bicycles to earn a living in Sub-Saharan Africa.

Standings & Awards

17 out of 591 in Africa
3 out of 268 in Economic Dev
12 out of 573 in Pilot
13 out of 555 in For-Profit
47 out of 4003 Overall

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VOTES

Baisikeli Ugunduzi

Increasing the value of bicycles and improving the millions of African livelihoods depending on bicycles.

In rural Africa, a bicycle breakdown is a day’s wages spent on repairs, a girl stranded alone at sunset, or no access to schools and markets. For those living on less than $2 a day, this is disastrous. Baisikeli Ugunduzi – Swahili for ‘modern bicycle’ – designs and produces high quality bicycle components with the millions of rural poor who depend on bicycles to earn a living in Sub-Saharan Africa (SSA). Our social business model focuses on increasing the value of working bicycles, decreasing costs of bicycle ownership, and improving the livelihoods of everyone in our value chain.

Our first product, the milele tube, eliminates flat tires, the single biggest bicycle problem in the developing world. $3 traditional tubes typically need replacement every other week; the milele retails for $10 and lasts five+ years, adding 10-20% to working bicycle incomes. Life changing!

The milele - ‘forever’ in Swahili - has a flexible solid tube that replaces conventional pneumatic tubes. The specially shaped tube is held in place by the tire and a proprietary rubber attachment unit at the valve stem hole. This technology never flats, can be cut to length for any size wheel, and can be reused as the tires wear out.

Baisikeli Ugunduzi is built around an established partnership with bicycle taxi unions, or saccos, to help them better serve their members, resulting in innovative products designed specifically for this market. Western Kenyan bicycle taxi unions have already agreed to distribute and microfinance our products. There is real, significant potential to change lives.

Our customers are frustrated with poor quality imported products ill-designed for Africa’s demanding conditions. Our market has 100 million customers who spend $775 million annually on bicycle repairs, yet no one is developing products specifically for this market. Now is the time for a company to step in and serve this market, advocate for its customer’s welfare, and create local economic opportunities. We project sales of 8800 units in Kitale, Kenya during the first two years, then expansion into SSA with over 23 million milele units in 12 years. We have backing for $75,000 of the needed $195,000 to launch and sustain Baisikeli Ugunduzi until profitability in 23 months.

Baisikeli Ugunduzi – For people who depend on bicycles!

Sponsors, Investors, and Supporters

FIVE PROJECT QUESTIONS Required (60 - 90 minutes)

1. What is your innovation?

Our first product permanently eliminates flat tires for the millions of African livelihoods depending on bicycles for less than $10. It lasts five+ years, never flats, is reused as tires wear out and rides like conventional tubes. More importantly, Baisikeli Ugunduzi has a novel distribution system allowing us to introduce innovative products that add value to rural SSA bicycles. Baisikeli Ugunduzi is also partnering with saccos to distribute and microfinance products.

2. Who gains the most?

Africans, particularly rural Africans who earn a living on their bicycles, gain the most from Baisikeli Ugunduzi. There are over 5 million living in extreme poverty who scratch out a living with their bicycles. Many spend over 20% of their income to fix their bicycle. They are served by poor quality, imported Asian goods. As bicycle taxi unions are rapidly growing, now is the time to step in and serve this market, advocate for its customer’s welfare and help create local economic opportunities.

3. Who pays?

Initially, customers pay for the milele tube or subsequent Baisikeli Ugunduzi products, either directly or through the bicycle taxi union’s established microfinance program. However, the milele tube saves $3 every other week typically spent on new bicycle tubes saving 10-20% of incomes dependent on bicycles. In the long run, Asian component manufacturers will pay for not adequately addressing the needs of customers in Africa and for their lack of a distribution chain in the region.

4. What is your success?

Baisikeli Ugunduzi will be a success when we are a key member of the bicycle community in Sub-Saharan Africa. Our measurable goal is to double the take home income of every rider using our products, every mechanic installing our products, and those selling our products. We will reach 2,500 people in yr 1, 16,300 in yr 2, and 160,000 by yr 5; have a distribution agreement with all bicycle unions in western Kenya in 2 years; and introduce a second product into the initial markets by year 2.

5. How will you do it?

Baisikeli Ugunduzi will leverage local innovation, local manufacturing, and local distribution channels while developing products that improve the livelihood of our customers across SSA. Our stepwise growth combines slow geographical growth across SSA and growth of our product catalog. Along the way we will be advocates for all of those who earn a living with a bicycle in SSA. Baisikeli Ugunduzi will succeed with hard work, honesty, and by valuing our customers and value chain above all else.