Stan­bank se­cures mile­stone fi­nance deal with Ford

The Star Early Edition - - BUSINESS REPORT - Roy Cokayne

STAN­DARD Bank is aim­ing to grow its pres­ence in the au­to­mo­tive fi­nance mar­ket and has en­tered into a joint ven­ture with the Ford Mo­tor Com­pany of South­ern Africa to pro­vide ve­hi­cle and as­set fi­nance in Botswana, Namibia and Swazi­land.

Sim­phiwe Nghona, the group head for ve­hi­cle and as­set fi­nance at Stan­dard Bank, said yes­ter­day he be­lieved this was the first au­to­mo­tive fi­nance joint ven­ture agree­ment fi­nalised in Africa out­side South Africa.

Nghona, who moved to Stan­dard Bank ve­hi­cle and as­set fi­nance from WesBank seven months ago, con­firmed Stan­dard did not have any joint ven­tures or al­liances with any orig­i­nal equip­ment man­u­fac­tur­ers (OEMs) in South Africa.

He said Stan­dard Bank ve­hi­cle and as­set fi­nance had re­la­tion­ships with MAN Truck and Cater­pil­lar in the rest of Africa and was pro­vid­ing a mo­bil­ity so­lu­tion to Uber in Kenya, which was re­spon­si­ble for east Africa.

Foot­print

“We are talk­ing about ex­pand­ing it to the var­i­ous coun­tries in the re­gion,” he said. Nghona said the Ford looked at other banks be­fore en­ter­ing into the joint ven­ture with Stan­dard Bank and one of the rea­sons they se­lected the bank was its foot­print on the African con­ti­nent.

He said they had agreed to bed down th­ese three coun­tries, make them work and mea­sure the ef­fec­tive­ness of the joint ven­ture be­fore talk­ing about how they ex­panded their foot­print.

Nghona con­firmed Stan­dard Bank ve­hi­cle and as­set fi­nance was hold­ing en­gage­ments with a num­ber of man­u­fac­tur­ers and dealer groups on the African con­ti­nent, in­clud­ing VW.

But he said it was quite chal­leng­ing in th­ese coun­tries, par­tic­u­larly in re­gard to ve­hi­cle and as­set fi­nance, be­cause th­ese mar­kets were largely driven by used ve­hi­cle im­ports.

Nghona said there were some fun­da­men­tal com­plex­i­ties that came with that, in­clud­ing how to value the ve­hi­cles and de­ter­mine trade-in val­ues.

He con­firmed Stan­dard Bank ve­hi­cle and as­set fi­nance aimed to also grow its pres­ence in the South African mar­ket.

Nghona said the bank had an es­ti­mated 12 per­cent mar­ket share in the au­to­mo­tive re­tail space but as­pired to im­prove its po­si­tion in the mar­ket.

He said WesBank was the mar­ket share leader in South Africa, fol­lowed by Ned­bank and Absa.

“Our as­pi­ra­tions are to be the al­ter­na­tive fi­nance house of choice in South Africa within a pe­riod of time. I’m talk­ing long term. But in the medium term, I think we can prob­a­bly move to third po­si­tion,” he said.

PHOTO: REUTERS

Stan­dard Bank aims to grow its Africa pres­ence.

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