Afriland First Bank, transporters union partner to ease purchase of vehicles.

The partnership agreement was signed recently in Douala. The Deputy General Manager of Afriland First Bank, Youssoufa Bouba and the National President Union of Road Transporters, Ibrahima Yaya, signed the Memorandum of Understanding, MoU, on behalf of both parties.

In concrete terms, the bank offers facilities to the union within the framework of leasing, its main mechanism for financing production and rolling stocks.

Over the years, Afriland First Bank has been working to support operators in transport sector through mechanisms of financing adapted to their needs and development objectives.

In 2002, through its subsidiary, Africa Leasing Company, Afriland First Bank Group, was launched on the Cameroonian market, with the leasing mechanism as a technique of financing addressed to both individuals and businesses.

Economic experts suggest that a finance lease is a type of lease in which a finance company is typically the legal owner of an asset for the duration of the lease, while the lessee not only has operating control over the asset, but also some share of the economic risks and returns from the change in the valuation of the underlying asset.

The land transport sector represents 35% of Afriland's leasing portfolio. Pursuant to the terms of agreement, the facilities from which transporters will benefit range from preferential rates to reimbursement deadlines, with long term added value, thus avoiding suffocation for GTTC members.

The signing of the agreement was received with great joy and enthusiasm by the economic players in road transport, given the many difficulties they had been encountering in renewing their rolling stock.

The GTTC Littoral Regional President, Soreya Mamadou, said the new deal will go a long way to regulate the transport sector.

“This is good for our sector because it will allow us to renew our very aging fleets. The price of transport is not regulated. For example, when you have an individual who has access to use trucks, it lowers the price to be able to win markets and suddenly the competition becomes fierce. This partnership with Afriland will make it possible to set the record straight,” Mamadou said.

Afriland First Bank’s Managing Director, Youssoufa Bouba, in his remarks, reiterated the contribution the transporters play in the profit margin of the bank and to the economy.

"Afriland First Bank had 56% share as of November 30, 2022 according to statistics from the latest banking market. At the end of December 2022, the amount of leasing carried by the transport sector amounted to 25 billion FCFA, out of an overall amount valued at 72 billion FCFA," he said

The hassle encountered by land carriers in acquiring new means of transport is now reduced, as the sector will now benefit from financial support from Afriland First Bank Group.