A new financing solution will help strengthen the relationship between supplier and operator, Nicola Brittain reports
A recently-signed partnership between articulated hauler manufacturer Rokbak and west African equipment dealer HMD, will provide financing solutions to mining operators in West Africa. This is part of a wider trend towards using such options. The solution is backed by Export Credit Agencies (ECAs) and Private Risk Insurers (PRIs) to West African projects. To date, HMD has introduced the Rokbak brand to Nigeria, Ghana, Senegal, Benin, Guinea and Côte d’Ivoire.
Growth in financial solutions
Over the last few years, asset financing has seen significant market growth, with companies embracing the opportunity to procure essential equipment required to maintain competitiveness. The number of businesses in the financial leasing industry in the UK grew 1.3% per year on average over the five years between 2018 and 2023, while helping commercial businesses, non-profit and government organisations acquire the equipment they need is now a US$1tn industry in the US according to the Equipment Leasing and Finance Association.
Rokbak’s financing scheme will be used to fund solutions for the company’s ADTs, the RA30 and RA40, which have proven “a strong fit for West Africa’s challenging landscapes”, according to the company. The main applications for Rokbak’s products in the region are mining, quarrying, infrastructure and general construction projects.
A practical way of financing large projects
Financing solutions like these are a practical way of financing a project when a company’s credit is weak or the project is too large. They can also help reduce the financial burden of fleet expansion with affordable interest rates, extended repayment periods and structured payment plans tailored to meet the demands of mine operators. This support is particularly valuable for projects requiring multiple ADTs or complete fleet solutions, allowing growing businesses to enhance their capabilities with high-quality equipment.
The scheme will be offered in addition to rental options where a company doesn’t want to take on the total cost of ownership.
International Mining Engineer asked Paul Culliford, Rokbak’s regional sales manager for EMEA & LATAM what had driven the move into West Africa. Culliford said: “If you look at Nigeria alone, the mining sector is estimated to have 44 types of commercially viable minerals worth an estimated US$700bn. So it’s a huge market in general at the moment. Rokbak is just starting out in the area so it’s all quite new to us.”
Such financing solutions also strengthen the relationship between operator and supplier as Culliford explained: “Once the haulers have been provided, the customer will benefit from after sale services with parts and maintenance.” He continued: “This will include telematics providing a customer with a deep understanding of how the machine is operated. This information might include hours of operation, the time its working and idle and the maintenance periods of the machine. The customer will also be provided with various things like fuel costs and downtime.” He concluded: “The customer is looking for the overall productivity of the machine, not just the actual machine itself.”
Paul Douglas, managing director of Rokbak said of the scheme: “The availability of flexible financing opens up new opportunities for customers across West Africa to access dependable Rokbak machines. Together with HMD’s local expertise, we are helping businesses to take on major projects with the right tools and resources.”
Driving growth across West Africa
The offer of financing backed by ECAs and PRIs is just one element of Rokbak’s long-term growth strategy in West Africa. The company is also working hard to strengthen local partnerships, increase brand visibility and provide operator training programmes.
“We see huge potential for Rokbak in West Africa,” Culliford concluded. “Our aim is to be more like a partner than a supplier; we are committed to establishing a lasting presence in the region.”
For more information visit: www.rokbak.com
