Capital Equipment News February 2018

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70 m

Scania Finance & Insurance Southern and East Africa’s recorded an all-time high 70% penetration rate in January this year

To date, Scania South Africa’s insurance portfolio is about R70- million, catering for a total of 1 876 customers

Scania Finance & Insurance Southern and East Africa offers a full pallet of finance products

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R2,5-billion

R5-billion

The company doubled its finance portfolio to R5-billion this year, up from R2,5-billion in 2014

manufacturer or its finance partner. Of all OEMs that offer a financing option to their customers, 67% expect equipment financing will increase as a percentage of their sales. The report further finds that the rate at which customers ought to prefer OEMs’ captive financing is increasing each year and financial divisions are increasingly playing a more important role in the overall strategies of OEMs. A case in point is Scania Finance & Insur- ance Southern and East Africa, which has significantly grown its financing portfolio in recent years, successfully bridging the fi- nancing gap for Scania customers operating in both Southern and East Africa. “We had a great month in January this year, recording a 70% penetration rate, which is an all-time high for Scania Finance & Insurance Southern and East Africa,” says Novotny. This means that 70% of all Scania products purchased in the region are financed through Scania Finance, and the remaining 30% through either banks or customers themselves. Finance locally has been phenomenal in the past three years, and in November 2017, the portfolio reached the R5-billion mark, up from R2,5-billion in 2014. “When I started in 2014, our portfolio was R2,5- billion and we have since doubled that number in three years,” says Novotny. Scania Finance & Insurance Southern and Growing portfolio Novotny says the growth of Scania

Petr Novotny, MD of Scania Finance & Insurance South- ern and East Africa.

“We had a great month in January this year, recording a 70% penetration rate.”

East Africa has been in existence for the past 11 years. “We realised good growth up until around 2010, and then there was a time of stagnation until 2014. We saw a sharp increase in the demand for our services during the past three years, demon- strated by the ability to double our portfolio during that period,” adds Novotny. Scania Finance & Insurance Southern and East Africa draws from the strength of Scania Finance & Insurance Global, which has a total of 15 business units covering 52 markets globally. To date, Scania Finance & Insurance Global has an 86% coverage of total Scania sales globally, driven by a workforce of 889 workers, catering for a total of 32 822 customers through 131 656 finance contracts. Scania Finance & Insurance Southern and

East Africa currently offers its services to Scania customers operating in South Africa, Namibia, Botswana, Tanzania, Kenya and Zambia. “We are also doing cross-border loans to Zimbabwe, and we are current- ly looking at entering the Mozambican market,” explains Novotny, adding that the company currently has a workforce of 46 employees, catering for 697 customers with a total of 5 566 finance contracts. Product range Scania Finance & Insurance Southern and East Africa offers a full pallet of finance products. The company offers three major products – Financial Leases, Operating Leases and Instalment Sales Agreements. “These are complemented by several other services. We also

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