In early 2019, Tata International Africa signed an agreement with John Deere Construction & Forestry as the authorised distributor for its products in Ghana and Nigeria. The addition of John Deere Construction equipment to Tata International Africa’s product line-up has enhanced the company’s ability to further meet the customer needs in a region where the company also sells and supports the John Deere Agricultural Equipment range.
The success and growth in selling and supporting the full line of John Deere Construction Equipment in Ghana, including the iconic John Deere excavators, has resulted in a strategic decision to invest in a new, full-service, flagship dealership in Takoradi.
“Our solid reputation of supporting John Deere products sold in Africa has enabled us to make this investment,” said Len Brand, CEO of Tata International Africa. In addition, we have made successful in-roads in winning market share as a new player in the industry, which is extremely encouraging. Our commitment to customer support through our uptime strategy has benefited John Deere owners in Ghana and other countries in which we operate.”
“Apart from the financial investment in building this new dealership in Tokaradi, we will be creating employment in the area as well. Africa’s manufacturing, mining and quarrying sectors have played a continuous and significant role in the development of Ghana’s economy. We are looking forward to playing a part in the further development of this region’s economy,” continued Brand.
The financing of heavy commercial vehicles, construction equipment and agricultural machinery presents a unique set of challenges in Africa, but the introduction of Captive Retail Finance solution, called AFCL in the region has afforded some leeway in the way credit is provided. The retail credit provider started operations on the African continent in November 2017, in Tanzania, and has since become a specialist company providing captive financing solutions for customers purchasing vehicles from Tata International Africa.
Since its inception two years ago, AFCL has financed more than 800 customers who, collectively, bought in excess of 1,600 vehicles and equipment. AFCL’s product offering includes repayment terms in USD or local currency, loan durations between 12 and 36 months, with minimal deposit requirements. Finance is available for individuals, first-time buyers and companies looking to purchase commercial, agricultural, construction or passenger vehicles.
AFCL branches currently in operation across Africa include Tanzania, Kenya, Nigeria, Ghana and Zambia. There are plans underway to introduce AFCL in South Africa and Senegal later this year.
“Tata Africa has proven that it is recognised as a leading company to be aligned to, not only as a distributor or dealer for OEMs, but also as a premium supplier and dedicated aftermarket support and service to our retail customers in Africa. We are committed to the company’s vision of building and sustaining relationships with cooperation and trust,” Brand concluded.