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Gov't rolls out hire-purchase mini cars deal to phase out Okada

By Bernice Ansah
Gov't rolls out hire-purchase mini cars deal to phase out Okada
Gov't rolls out hire-purchase mini cars deal to phase out Okada
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The Coastal Development Authority (CODA), one of the government’s agencies with a mandate to accelerate economic and social development in the Coastal Development Zone has rolled out a purchase and payment deal for Bajaj Qute vehicles under the ‘CODA Drive initiative’.

The CODA initiative is to improve livelihoods and create employment by facilitating transportation for individuals and small businesses within the Coastal Development Zone.

It is also to phase out the commercial motorcycle business, also known "Okada".

During the 2020 elections, the flagbearer of the NDC party, John Mahama had intentions of legalizing and regulating the "Okada" business for job creation, however, the NPP party kicked against the legalization and proposed the alternative to offer new vehicles in order to ensure safety.

 Currently, the government has started with the first phase of the initiative with some 100 vehicles

The modalities for the purchase and payment of the quadricycles as outlined by the Authority will apply to all applicants and beneficiaries of the initiative.

Below is a detailed communiqué issued by CODA on the initiative.

The Initiative

CODA Drive is an intervention to improve livelihoods and create employment by facilitating transportation for individuals and small businesses within the Coastal Development Zone.

Requirements of beneficiaries (Non-Okada Riders)

To qualify as a beneficiary of the CODA Drive initiative, an individual or small business:

  1. Must be a member of any farmers, fishers, taxi drivers, ‘Okada’ riders or ‘Aboboyaa’ riders association for at least a year.
  2. Must be resident within the Coastal Development Zone (Oti, Volta, Greater Accra, Central, Western and Western North regions).
  3. Must possess a valid driver’s license, minimum Class B.
  4. Must be a member of CODA Credit Union and possess a CODA Credit Union membership card.
  5. Must complete an application form that should be endorsed by two guarantors.
  6. Must submit completed forms to the regional office of CODA for further processing.

Requirements for Okada riders

To qualify as a beneficiary, an okada rider:

  1. Must possess a Ghana Card.
  2. Must possess a valid driver’s license, minimum Class B.
  3. Must surrender their registered motorbike.

Price and payment

  1. The price of the vehicle is GHS 25,000.00.
  2. The payment shall be on hire purchase.
  1. An individual or small business who is selected to benefit must make an initial payment of 20% of the selling price.
  2. The balance with an interest rate of 2% per annum shall be spread over 24-month equal installments.
  3. Based on the hire purchase agreement, the Authority shall have ownership of the vehicle until payment is completed by the buyer/beneficiary. As such, all documents to the vehicle shall be held by the Authority until payment is completed.

Insurance

All CODA Drive vehicles are insured before they are distributed.

Registration

All CODA Drive vehicles shall be registered in the name of CODA Credit Union before they are distributed to the beneficiaries. Ownership of a vehicle shall be transferred to a buyer/beneficiary after completion of payment.

Conclusion

Unless otherwise stated, the terms and conditions contained in this press release shall be the modalities for the sale and payment for the CODA Drive vehicles.