Vivo Energy, the Shell licensee in 16 countries in Africa, has expanded its leased fleet by another 8 units to further expand its fleet across the continent. This acquisition is expected to boost value creation and the overall growth of its business with less stress on fleet maintenance and brings its regional leased fleet over 50 units.
Speaking while receiving the units, Milkah Kahumbura, Vivo Energy’s Procurement Manager said, “Vivo adopted leasing as its business strategy in a bid to meet its products growing market demand. We have tried it before and it is working. The company will seek to expand this partnership as a means of managing its operational costs by passing on intermediate services of vehicle maintenance to VAELL and applicable to its regional presence.”
Vivo is among other companies and governments that have adopted the policy of leasing vehicles and equipment to manage their cash-flows. The product is attractive as it helps institutions avoid unnecessary capital expenditure in buying depreciating assets such as vehicles. In addition, it assists institutions to pass on other services such as insurance, remote tracking and maintenance to lessors at a fixed monthly cost during the entire leasing period. This ensures that clients derive maximum value possible as well as aiding them to concentrate in their key businesses with less interruption.
While flagging off 8 units, Paul Njeru, VAELL’s Regional Managing Director, said, “Leasing has been accepted and embraced by leading multinational corporations around the globe as a sound model for asset acquisition. Key industry players cite the flexible terms of obtaining a lease as one of the major benefits that makes it attractive compared to loans.” He added, “VAELL has leased various types of assets to various corporate that many think are not leasable such as tablets, gym equipment, trucks, trailers, power plants and production equipment.”
VAELL has presence in the auto mobile, healthcare, mining, government, agriculture and construction sector. In 2014, VAELL won the award for the Best in Transport, in the Top 100 KPMG/Business Daily survey, and 2015 shot into Club 101 in the same survey. The leasing powerhouse with presence in 8 African countries remains to be a one stop shop for all regional needs.