Vehicle and Equipment Leasing Ltd (VAELL) and Tata Africa Holdings have partnered to supply equipment to a consortium of Tanzanian mining companies. The equipment supplied is valued at KSh 350 million ($4 million). Some of the equipment being leased to the consortium includes excavators, tippers, wheel loaders, breakers, graders, drills and compressors.
The deal marks increased presence of the Kenyan leasing firm into the regional market. VAELL Regional Managing Director Paul Njeru said there has been huge growth in demand of heavy commercial equipment in the region, adding that the firm expects further growth.
This is especially in the sectors of oil, gas and mining as well as government agencies looking to lease equipment in doing major infrastructure projects. “Leasing is increasingly gaining popularity and we are excited that many companies are now realising the numerous advantages of leasing as well as the potential leasing could bring to their organisations,” he said.
“The main advantage is that companies are able to plan their finances well as leasing requires only small payments over a long time, depending on the terms agreed on.”
Speaking at the signing event, Head of Auto Division Tata Africa, Sandeep Tickoo said he was elated at the partnership with the leasing firm. He remains optimistic of tremendous growth opportunities in the region.
“Leasing companies and auto dealers enjoy great synergies that in the end can be of great benefit to the clients. We are excited to be part of a large transaction that shall see the Tanzanian mining sector grow,” he said.
This article first appeared on the Standard Media website. (Mon, July 7th 2014)