Business Fleet Africa Transport World Africa

Business Fleet Africa participated in the Smarter Mobility Africa webinar series in February, which focused on the topic of "Financing Fleets to go Electric." The discussion, powered by Ring Central, delved into the challenges and opportunities associated with financing electric vehicle fleets in Africa. The webinar was moderated by Ben Pullen, Group Director of Mobility at the VUKA Group, and featured notable speakers including Jonathan Mphake, National Fleet Manager at SBV South Africa, Steve Onyango, CFO at Watu Credit, and Paul Plummer, Co-Founder at Everlectric.

During the webinar, Jonathan Mphake from SBV South Africa shed light on the intricacies of fleet management and emphasized the importance of considering factors such as the total cost of ownership when transitioning to electric vehicles. Steve Onyango, representing Watu Credit, shared insights into their microfinancing initiatives for electric motorbikes and three-wheelers in Kenya and other African countries. Paul Plummer, on the other hand, discussed Everlectric's vehicle-as-a-service model, which aims to remove barriers to electric fleet adoption.

The webinar participants engaged in a comprehensive discussion on various issues, including the challenges posed by data, infrastructure, regulatory support, and the need to educate financiers about the benefits of electric vehicles. It was highlighted that commercial fleets have been instrumental in driving electric vehicle uptake in other regions and have the potential to do the same in Africa, provided that financing challenges are effectively addressed.

According to the participants, fleet managers encounter several obstacles when it comes to adopting electric vehicles. One major hurdle is the financing aspect, as the cost of purchasing or leasing electric vehicles and setting up the necessary infrastructure can be a significant barrier. Additionally, some individuals within organizations may still have a preference for traditional internal combustion engine vehicles, leading to resistance to change. Legislative support is also crucial, as fleet managers need to explore available tax breaks and government initiatives that can facilitate the adoption of electric vehicles. Furthermore, fleet managers must carefully evaluate the capital expenditure required for purchasing or leasing electric vehicles and consider the return on investment over the vehicles' entire lifespan. Understanding the total cost of ownership, including running costs and the full lifespan of the vehicle, is vital in making informed decisions about adopting electric vehicles.

These obstacles underscore the complex considerations that fleet managers must navigate when transitioning to electric vehicles. By addressing these challenges, exploring financing options, and promoting awareness about the benefits of electric fleets, it is possible to accelerate the adoption of electric vehicles in Africa and pave the way for a more sustainable and environmentally friendly future.

We chat to Hino South Africa's new Vice President, Anton Falck, about his appointment and plans for the company in South Africa.

Dr Wolfgang Bernhard, member of the Board of Management of Daimler AG responsible for Daimler Trucks & Buses speaks about the new Regional Centre for Commercial Vehicles in Southern Africa.

Opening address by the CEO of the Road Freight Association at the RFA Convention 2015

The Road Freight Association's Gavin Kelly explains why the association is against proposed legislation to ban heavy trucks from public roads during peak traffic in South Africa.

RTMS is an industry-led, voluntary self-regulation scheme that encourages consignees, consignors and transport operators engaged in the road logistics value chain to implement a vehicle management system that preserves road infrastructure, improves road safety and increases the productivity of the logistics value chain. This scheme also supports the Department of Transport’s National Freight Logistics Strategy.

All stakeholders in the road logistics value chain are aware of the problems concerning road logistics that affect their industries. The road infrastructure is deteriorating rapidly due to overloading and poor maintenance. Furthermore, the large number of accidents attributed to heavy trucks is unacceptable. Both road safety and road infrastructure are public concerns subject to strict regulation by governments, particularly when abused. Overregulation, road deterioration and high accident rates pose a significant threat to the long term sustainability and global competitiveness of the road logistics value chain.

This has prompted users of road haulage (consignors and consignees) and providers of road haulage (hauliers) to jointly develop strategies aimed at protecting the road network, improving road safety and transport productivity for the benefit of the country’s citizens and the industry itself.

The industry also recognises that poor compliance to transport regulations creates an unfair competitive environment. It is therefore felt that a self-regulation scheme is required to create standard rules for the industry, and that these rules should become the “business norm” – supporting principles of good corporate governance. It is for this reason that industry is leading this initiative, to ensure its quick adoption by all businesses participating in the road logistics value chain.

Furthermore, industry recognises its critical role in the economy’s growth. Efficient movement of goods between a country’s centres of production and its shipping ports boosts competitiveness in international markets. RTMS is one of the innovative and pro-active initiatives that will make this possible.