Simba Colt Motors invests Sh1bn to drive up growth

15 September 2010 | By NATION reporter

Simba Colt Motors invests Sh1bn to drive up growth

 

This is part of Simba Colt Motors strategy to diversify its business portfolio which includes revamping its vehicle rental operations.

 

The company’s fully owned subsidiary Simba Vehicle Rental Limited, which is the local 'AVIS Rent A Car’ franchise holder, has invested over Sh1 billion in the business. It is working towards capturing both the local and global clientele in business and leisure industry operating from the international airports in Nairobi and Mombasa. “We have heavily invested in the deployment of top of the range vehicles to ensure that we meet the expectations of our clientele within AVIS Rent A Car System Global standards, these include top of the range BMW and Mitsubishi vehicles,” said Mr Adil Popat group CEO. The vehicles have also been fitted with car tracking devices from Africa Fleet Management Solutions for client security.

 

Mr Popat said the provision of premier class car hire and related value added services such as executive chauffeur driven rentals will differentiate the firm’s services. The local motor dealer acquired the exclusive rights to operate the car rental service franchises in Kenya a few years ago.

 

 

Honda mulls assembling motorbikes locally

23 September 2010 | ByDaily News Reporter

QUALITY Group Limited plans to set up an assembly plant for Honda motorcycles in Dar es Salaam, a move that is expected to boost the country's manufacturing sector.  The Quality Group Chief Operating Officer, Mr Rakesh Mehta, said this during the signing agreement between his firm and Honda South Africa. 

 

"Our company takes pride in serving the society through its continued efforts in bringing the right products through global alliances. We are looking forward to establishing of the state-of-the-art motorcycle assembly plant in the city," he said.  Quality Motors Limited (QML) said in a statement it has successfully introduced several new products, such as Honda special utility vehicles (SUVs), motorcycles and generators in the country.  He also said the firm would soon launch Long Tail Boat Kit which will enormously benefit the fishing communities. 

QML has achieved significant accomplishments in terms of product offerings, services, distribution network and most importantly recognition and acceptance by its valuable customers.  The President for Honda South Africa, Yoshiaki Nakamura, said: "We are happy with this long partnership with Quality Group Limited. We have considered their proposal (for establishing an assembly plant) favourably."  Mr Nakamura urged the government to waive tax to investors of their calibre, to enable many people get the products at affordable prices.  Honda South Africa General Manager Barrie Barnard, said: "Compared to the products available in the market in Tanzania, Honda will be able to compete with its rivals."

 

GM East Africa records growth

19 September 2010 | By Lumiti Khabuchi

Motor vehicle manufacturer General Motors East Africa's (GMEA) last year registered a growth in its market share from 19.5 percent to 20.1 percent despite a global recession that also affected the industry.Announcing the performance, the company's President for Africa Edgar Lourencon expressed optimism of further growth for GMEA which is expected to record more sales volumes this year, especially in the area of public transport.

 

"We will be launching our new 33 and 37 seater-Isuzu buses in the middle of this year. These vehicles are in line with the Public Service Transport reforms which are currently underway in Kenya and also a demand from customers for higher occupancy vehicles," said Mr Lourencon. GMEA assembles Isuzu commercial vehicles and buses at its Nairobi-based East African plant.

 

This announcement came even as the parent company, GM, remained positive on its growth prospects on the African continent. While Africa also suffered the effects of the global recession last year, Mr Lourencon said he expects the market to bottom out by the third quarter of 2010. He said sales are showing improvement in markets like South Africa where the downturn started sooner than the rest of Africa.  "We are confident that the market will not deteriorate any further," he said adding that this year, they would be looking to strengthen the sales volumes and market share positions in most of the African markets they operate in.

 

 

Kenya revs up new plan to lease vehicles for use by civil servants

16 September 2010 | By WACHIRA KANG’ARU

The government is preparing to stop buying motor vehicle for its officials in a move expected to save the taxpayers at least Sh3.5 billion every year.

 

In an ad, the Ministry of Finance on Thursday invited players in the motor vehicle and leasing industry to apply for provision of vehicles and transport services though leasing on trial basis. “There is going to be huge savings for the government with the money saved shifted towards development projects,” said Vehicle & Equipment Leasing Ltd chief executive, Mr Paul Njeru.

 

The government’s call for expression of interest follows a three-day meeting involving State officials, an international consultant retained by the Treasury to help in formulating leasing policy, and industry players, where the latter made a case for leasing. The government will be joining Supermarket chain Nakumatt, Kenya Shell, East Africa Breweries Ltd, Bamburi Cement and soft drink maker Coca-Cola, which are currently the largest consumers of leased motor vehicle.

 

On the supply side Simba Colt, Ryce Motors, Toyota Kenya, Rentworks East Africa and Vehicle & Equipment Leasing are the key players.   “This is the right way to go,” Mr Robert Nyasimi, a former chair of Leasing Association of Kenya, which has been lobbying the government to switch from buying motor vehicle to leasing, noted.   Experts say that if the government was to increase the uptake of leasing services by 25 per cent the multiplier effects on the overall economy could see the country wealth grow by an additional 10 percentage points, making the achievement of Vision 2030 almost a reality.

Leasing will also help Kenya to triple the number of cars it buys every year, helping in service delivery drastically.

 

Under the pilot project, the government intends to lease 1,500 vehicles of different makes and models, ranging from 1300cc to 3500cc including saloon, utility and commercial vehicles of up to 15 tonnes. The cars are expected to cover, on aggregate, over 30 million kilometres annually and will be used mostly in the Ministries of Agriculture, Fisheries and Livestock known to require extensive use of vehicles.

 

In addition, the government will be leasing about 300 ambulances expected to make 22,000 referrals covering approximately 11 million kilometres annually as part of the pilot project. The government will also outsource related services such as insurance, scheduled and unscheduled maintenance, replacement of non-functional vehicles, and supply of fleet management systems.

 

 

Transport infrastructure and services opportunities in Ghana

2 June 2010

Investors are invited to invest in Ghana’s transport infrastructure and services. Identified as one of government’s priority areas to be developed under its medium term plan, transport services offer excitin opportunities especially in mass transportation – scheduled bus system, rail upgrades and passenger rail transport on chosen corridors, lake transport system (exports and imports to and from land locked neighbours of Burkina Faso, Mali and Niger), air transport operators for domestic and sub-regional services, as well as, upgrading of existing trunk roads.

 

Road transport is the predominant mode of transport in Ghana, accounting for the vast majority of freight and passenger travel. Ghana’s road construction boom followed the country’s independence in 1957. The road network at that time, though significant, was not well maintained. It began to deteriorate in the 1970s until the commencement of the structural adjustment programme in 1983. By the 1990s, Ghana had experienced marked improvement in its road network that led to its emergence as a hub linking the entire West African trading zone. The privatisation of many of Ghana’s transport and logistics enterprises has also led to greater efficiency in these areas.

 

Investment opportunities Local and foreign investors have the opportunity to invest in the following areas:   Road construction and maintenance The cost of road construction and maintenance is borne by the government while private contractors assume the task of implementation. Major opportunities in the sector are in the form of contracts between the Ministry of Roads and Highways and local and international engineering firms via competitive bidding. The exception is where emergency works are concerned, in which case selective tendering is employed. Eligibility for bidding on public road construction and rehabilitation projects requires the registration of prospective contractors with the Ministry. Donor groups such as the World Bank, African Development Bank, JICA, USAID, DANIDA, DFID and GTZ often underwrite road projects tendered by the Ministry.   Transportation services Entry into the public transportation field is unrestricted. Most services are offered by private operators and competition is keen despite the presence of two state-owned firms, City Express Bus Company Ltd and the Omnibus Services Authority. Both companies are un-subsidised and presently on the government’s divestiture list. Another company, STC, has already been divested and now operates trucking services between the main urban centres.   Automobile sales and service  Another growth area is that of vehicle sales and after-sales service. Companies like PHC motors, Silver Star, Vodi Technik and Mechanical Lloyds are all operating dealerships with service centres in Ghana. In addition to car and truck sales, a number of firms also deal in modern vehicle diagnostic systems. Hundreds of independent dealers also serve the second-hand automobile market.

 

 

GMSA, Isuzu in talks to grow local production

28 September 2010 | By Irma Venter

General Motors South Africa (GMSA) was talking with Isuzu in Japan to expand the Port Elizabeth vehicle manufacturer's reach into Africa, said General Motors (GM) Africa president and MD Edgar Lourencon.

 

GMSA currently assembled the Isuzu KB pickup and Chevrolet Corsa Utility vehicle platforms, with a third, still unknown platform to be announced on Thursday, as the local arm of the US vehicle manufacturer worked to breach the 50 000 unit a year production threshold which would allow it to qualify for benefits under government's Automotive Production and Development Programme, due to kick off in 2013. Production at GMSA's plant would be around 30 000 units in 2010.   Lourencon said that GMSA was currently supplying the Isuzu pick-up to the South African market, as well as to some neighbouring countries (such as Zimbabwe), but that GMSA was looking to expand its reach, and act as a manufacturing base for the whole of the sub-Saharan market. "This is very exciting for us," said Lourencon. He added that the new Isuzu KB pick-up would be available in the local market in 2013.   GMSA produced 10 550 Isuzu pickups for the local market in 2009, and 915 vehicles for neighbouring markets. Year-to-date numbers show 7 874 pick-ups were produced for the South African market and 528 for neighbouring states.

 

 

 

Fuel Supply Normal in Dar es Salaam

September 2010 | By Jame

The fuel shortage being experienced by other member states of the East African Community (EAC) has not affected the Tanzania oil market. It is business as usual for the 45-plus oil marketing firms as well as for motorists. The Principal Communications and Public Relations Officer, Energy and Water Utilities Regulatory Authority (EWURA), Mr Titus Kaguo said Tanzania was not experiencing any problem. In the commercial capital, Dar es Salaam, traffic was normal. Vehicles are moving as usual and no queues at the hundreds of petrol stations in Dar es Salaam city.

 

Tanzania imports all of its oil products, crude and white products, by private local and multi-national firms, most of whom have their own retail outlets, although the Government is considering to introduce a system of bulk importations by a public firm to do away with undue overpricing by the oil marketers. Tanzania imports its oil mostly from the Middle East at an average rate of 28,000 barrels per day while it consumes some 25,000 barrels per day, according to the CIA World Factbook 2009. BP Tanzania is among the 45-plus oil marketing and trading companies in Tanzania with Total, Oryx, Engen, GAPCO, GAPOIL and Oilcom Tanzania Limited leading the pack.

 

Last year, BP Tanzania embarked on a re-basing exercise when it reassessed its customer base to reduce debts and focus on growth. Part of BP's business is transit trade: bringing products into the port of Dar es Salaam and then through the country to Uganda, Rwanda, Burundi, the Democratic Republic of Congo, Zambia and Malawi. BP Tanzania markets a diverse range of automotive and industrial lubricants as well as a newly introduced range of detergents and speciality products. Most of the major, fast-moving grades of lubricants are blended at the Oryx LOBP located in Dar es Salaam. Specialities, slow moving grades and the detergent ranges are presently imported from a number of BP associate plants around the world such as Singapore, Dubai, Durban and Harare.