A global motor vehicle exporter has partnered with a local insurer and a commercial bank in a bid to improve the shipping of vehicles into Uganda. The three; NCBA Bank Uganda, ICEA Lion and World Navi Co. Ltd, say that the growth of the automobile industry in Uganda has for long been curtailed by a poor financing regime and limited trust of the import value chain actors.
Most Ugandan motorists purchase vehicles either from vehicle importing companies or fellow drivers, even when they would afford to import, but for the challenges like risk to the safety of the import. Stanley Makombe, World Navi General Manager for Africa, said the major barrier to vehicle importation is that Ugandans fear to lose out in case the vehicle got lost or damaged along the way, while there also cases of delivering a vehicle different from that the buyer ordered for.
Speaking at the unveiling of the partnership, Makombe said that the Japan-bases company, which operates in 23 countries globally ensures that the vehicle is thoroughly checked by technicians there before departure, while for quality, the vehicles carry a three-month warranty, allegedly, the first of its kind in Uganda.
World Navi deals in both used and new vehicles from Japan, UK, Thailand and South Africa.
The vehicles, apart from being insured while on the seas, also carry a comprehensive insurance cover after it’s handed over to the owner.
Ambrose Kibuuka, the ICEA Lion General CEO, says the partnership is also aimed at encouraging Ugandans to embrace other insurance policies like Motor Vehicle Comprehensive, rather than only the compulsory ones like the Motor Third Party.
“All cars will come with Accident Free and Genuine mileage certificates and three-months’ warranty on engine and transmission with a full tank of fuel, for all the three months of the campaign,” says World Navi. NCBA Bank is offering up to 80 percent of financing for any vehicle imported through World Navi Co. Ltd, between November 2023 – January 2024, as well as a two-months grace period before repayment begins.
The Bank’s Chief Executive Officer, Marks Muyobo says they came into the partnership to help demystify the private importation of a vehicle as a safe transaction, as many people have previously not got what they expected. He says for the many years the bank has been in the business of financing imports, they have noted the frustrations of the Ugandans and this is what the partnership is coming to answer.
URN.