Businesses, fleet owners and transport operators in Uganda could have greater access to new commercial vehicles following a partnership between automotive distributor Double Q Company Limited, dfcu Bank and ICEA LION General Insurance.
The partnership brings together vehicle supply, asset financing and motor insurance, with the three companies seeking to reduce some of the financial and operational barriers associated with acquiring new commercial vehicles and equipment.
Under the arrangement, dfcu Bank will provide financing of between 80% and 100% of the value of eligible commercial vehicles and equipment, according to the partners. The financing is intended to reduce the amount of upfront capital required by businesses while allowing them to retain working capital for other operations.
ICEA LION General Insurance will provide comprehensive motor insurance covering risks including accidents, theft, fire and third-party liability.
Double Q’s portfolio includes heavy commercial trucks, passenger vehicles, road construction equipment and mining equipment. The company distributes brands including Sinotruk, XCMG, GWM and Heli in Uganda.
The partnership comes as businesses continue to weigh the cost of operating older vehicles against the potential benefits of investing in newer fleets.
Industry assessments cited by the partners indicate that about 85% of vehicles entering Uganda are second-hand, compared with 15% that are new. The high share of used imports has largely been associated with affordability, although businesses operating commercial fleets are increasingly considering newer vehicles because of factors such as fuel efficiency, reliability, maintenance costs and productivity.
Richard Musani, Head of Marketing at Double Q Company Limited, said financing has been one of the challenges facing businesses seeking to acquire new commercial vehicles.
“We understand that access to affordable financing has been one of the biggest barriers preventing many businesses from investing in new commercial vehicles. By partnering with dfcu Bank and ICEA LION General Insurance, we are removing that barrier and providing customers with an end-to-end solution that combines world-class vehicles, flexible financing and comprehensive insurance protection.”
The arrangement is expected to serve businesses in sectors including logistics, construction, agriculture, manufacturing, mining, distribution and public transport.
The partnership also comes as Double Q expands its offering of electric and hybrid vehicles and equipment.
Musani said the company has introduced EV options across several product categories, including XCMG earth-moving equipment, Sinotruk commercial trucks, GWM passenger vehicles and Heli material-handling equipment.
Among the products cited by the company are the Tank 500 and Haval H6 plug-in hybrid electric vehicles, the HOWO NX Tractor Truck, an electric XCMG Wheel Loader and a 5-tonne Heli electric forklift.
“We recognise that fuel costs are an important consideration for our customers, and we are responding by expanding access to practical alternative mobility solutions across our product range,” Musani said.
The expansion comes against a backdrop of rising operating costs for transport-dependent businesses, with fuel expenditure remaining an important consideration in fleet management.
Lin Yu, Managing Director of Double Q Company Limited, said businesses should consider the total operating cost of a vehicle when making purchasing decisions.
“Modern commercial vehicles deliver measurable business value through improved fuel efficiency, enhanced safety, greater reliability and lower operating costs.”
Yu added that Double Q’s after-sales services, genuine spare parts, technical support and manufacturer-backed warranties are intended to help customers manage vehicle uptime and operating costs.
For dfcu Bank, the partnership is part of its efforts to provide financing for productive business assets.
Kate K. Kiiza, Executive Director and Chief Corporate and Institutional Banking Officer at dfcu Bank, said eligible customers would be able to finance up to 100% of the purchase price of commercial vehicles and equipment.
“Through our asset financing solutions, eligible customers can finance up to 100% of the purchase price of commercial vehicles and equipment, allowing them to preserve working capital while investing in productive assets.”
Kiiza said the bank expects the financing arrangement to support business expansion, job creation and private-sector growth.
Meanwhile, ICEA LION General Insurance will provide insurance cover for financed vehicles and equipment.
Ambrose Kibuuka, Chief Executive Officer of ICEA LION General Insurance, said protecting commercial vehicles was important because of their role in business operations.
“Every commercial vehicle represents a significant investment, and protecting that investment is critical to business continuity.”
He said the partnership would allow customers to acquire, finance and insure their vehicles through an integrated arrangement.
The three companies expect the partnership to contribute to the gradual modernisation of Uganda’s commercial vehicle fleet by making new vehicles easier to finance and insure.
Newer vehicles can also offer improvements in fuel consumption, safety and emissions compared with older vehicles, although the overall cost advantage will vary depending on the vehicle, usage patterns and financing terms.
For businesses considering the arrangement, the available financing, insurance terms, eligible vehicle models and repayment conditions will depend on individual customer assessments and the applicable terms of the respective providers.
Interested customers can obtain information on available vehicle models and financing options through Double Q showrooms and dfcu Bank branches.
