Truck&Fleet ME July 2021

Page 28

FEATURE

LEASED OUT

Leasing and fleet powerhouses highlight the challenges facing the AME region at the Global Fleet Conference (GFC)

T

he recent – virtual – Global Fleet Conference (GFC) highlighted that Africa and Middle East (AME) present both challenges and opportunities for multinational fleet and leasing companies. During the event, leasing and fleet providers said their industry must find the right balance in each country in the years ahead. The AME region is divided into three distinct areas: the Middle East, in which innovation is beginning to take hold; Northern and South Africa, where vehicle fleet management and leasing have reached a certain maturity; and Central Africa where implementing best practice, as in other regions like Europe and North America, is extremely difficult. 26 JULY 2021

Conference speakers included Thierry Domballe, Director Fleet & Leasing, Loxea - Avis Fleet and Sandrine Garcia, General Manager AMI Sales, Nissan Motor Corporation and a walk in by Huub Smeets, Global Procurement Manager, Fleet and Travel, at Philip Morris International. Africa – a hub for used cars

Introducing the AME market facts and stats, Sahand Malek, Fleet Europe Expert, described Africa as vibrant but that it’s also one of the most challenging markets for fleet and leasing. A continent of 1.3 billion inhabitants (16% of the world’s population), 60% of whom are under the age of 25. Of the 1.17 million vehicles registered in the region in 2019, only 10% of those that were imported were new. Africa

The automotive industry is still underdeveloped with only a small number of OEMs”

is one of the largest markets in the world for second-hand vehicles, with the average age of those on the road being over 12 years old. In some countries, such as Uganda, that number can rise to 20 years. Thousands of used vehicles are exported from North America, Europe and elsewhere into African countries every year. Although this provides cheap cars for citizens, it also contributes to high levels of pollution and safety issues and the continent is often treated as something of a “dumping ground” for the worlds used cars. Strong enabling policies, tax incentives and subsidies required to build the infrastructure that supports clean, modern transport systems is missing in Africa. There are too many competing priorities for limited government funding. meconstructionnews.com


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Truck&Fleet ME July 2021 by CPI Trade Media - Issuu