Construction Firms To Benefit From Entry Of German Equipment Maker
Construction firms are set to benefit as the German leading manufacturer of compact and construction machines, Wacker Neuson Proprietary Limited, enters into a distribution and dealer agreement with the regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL).
This comes as the manufacturer seeks to grow its dealer network and be closer to the customer as Africa speeds up infrastructure development projects fronted by governments and private investors. In the arrangement, the leasing firm will market, sell construction and mining equipment manufactured by the German firm.
The leasing firm will support the German Equipment maker in Kenya and countries where it has a presence such as Uganda, Tanzania, Burundi, Democratic Republic of Congo (DRC), Rwanda and Zambia. In the arrangement, the equipment sharing platform, Quipbank Trust Limited, has been earmarked as the sub-distributor of the Naivasha headquartered firm. The manufacturer currently has an outlet in South Africa that will work hand in hand with the new East African dealer. The new dealership is expected to better the lessor’s fortunes as it also invests heavily in dealerships, in addition to its leasing specialization.
“The dealership is strategic for us as it will grow our equipment catalogue and help deliver great customer service to the construction industry that is currently growing in the region with high demand for modern construction equipment. With this new signing, we will be able to meet various requests that have increased in recent days and further solidify our commitment to delivering customer value and product innovation. We remain optimistic of tremendous growth opportunities in the continent,” said Bertha Mvati MD for VAELL Kenya.
The growing construction and mining sector in the region has created the need for modern construction equipment that is specific to the task. Gone are the days when a contractor used to work with one piece of equipment that will perform almost every need on the construction site. With this in mind, every contractor is shopping for suitable equipment that will make their work easier, cost-savvy and efficient. This has attracted various equipment manufacturers that have pitched tents in Africa.
According to the statement sent to the newsroom, the lessor shall purchase the machines from the manufacturer and then market and sell them in its own name and on its own behalf in the markets they operate in. This dealership will be a vital step in strengthening the construction equipment industry as it will see contractors and miners access Light Equipment and Compact Equipment that are currently very scarce in this particular market like rammers, wheeled excavators, vibratory plates, rollers, soil compactors main content light towers and light balloons for outdoor illumination. The availability of these machines will result in easy access to modern equipment, better cost management and increased efficiency.
While commenting on the dealership, Ivaney Turyasingura, Quipbank’s Regional Sales and Fleet Manager said, “The new dealership and distribution agreement is part of our focus on ceaseless efforts to support the construction industry in Eastern Africa. The availability of modern construction technology and processes will also help improve efficiency and workplace safety. We will continue to provide the best possible solutions and expand our reach to meet the needs of all the aspiring construction customers.”
According to industry pundits, the mining and construction equipment industry in the continent is currently evolving and experiencing a steady transformation as it grows from a low volume, intensive use of modern equipment to a high volume of special-purpose equipment. The uptake of the equipment is expected to grow as people embrace technology and shun manual labour.
Wacker Neuson, the world-class leader in construction and mining machinery, says they will work together with the East African partner to provide solutions and ensure customers have access to the best technology that will reduce drudgery at the workplace.
The Managing Director of Wacker Neuson Sub-Saharan Africa, Dennis Vietze, said, “ as part of our strategy for growth and being near to the consumers we are working with our East African counterpart to help us serve this particular market. When we move close to customers we are able to appreciate market needs and therefore develop best solutions that will fit the ideal scenarios. This will also help us lessen lead times due to faster and easy access to products and spares, ensuring optimised productivity for our customers. Our customer-centric approach allows for the product to reach the customer in an efficient manner regardless of location.”
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