GE financing arm to open office in Nairobi with eye on region

General Electric’s aircraft leasing and financing arm is set to open an office in Nairobi to tap rising demand for funding in the region’s aviation market. 

GE Capital Aviation Services Ltd (GECAS) has announced it will open its third Africa office in Kenya targeting airlines in Uganda, Tanzania, Rwanda, Burundi and Ethiopia.

The company, the world’s largest maker of jet engines and financier of aircraft purchases, has offices in South Africa and Ghana.

“Africa continues to offer an excellent growth opportunity for GECAS given the breadth of our fleet and product offerings,” said Jonty Nel, senior vice president and region manager Africa, and Middle East.

“We’re increasing our presence in Africa with a focus on East Africa, and we see great potential for growth.”

Africa’s aviation sector is set to grow, powered by its robust economic growth and a burgeoning consumer market which is driving business and leisure travel. Increased trade deals between the continent and Asia is also driving traffic.

This has sparked increased investor interest in the continent with focus on budget airlines. Eastern Africa carriers like Kenya Airways, Ethiopian Airlines, Air Uganda and RwandAir are buying and leasing planes like never before.

The establishment of the GECAS office in Nairobi is part of GE’s plan to grow its business in Africa where the multinational sees presenting significant growth opportunities.

The firm is targeting double-digit revenue growth in the continent’s business over the next few years.

Last year, GE said Africa contributed about one per cent of its overall revenue, or around $1.8 billion. The firm targets rising demand for heavy equipment, especially from mining, oil and gas sectors as well as power projects. GE’s financing and leasing arm has one of the largest fleets of commercial aircraft from Boeing, Airbus, Bombardier and Embraer. It has a fleet of over 1,630 owned and serviced aircraft across the globe.

Last week the company delivered the first of two new Boeing 777-300 ER leased by KQ for a period of 12 years. The aircraft, named Maasai Mara by President Uhuru Kenyatta yesterday, is the largest in the airline’s fleet with a capacity of 400 people.

It will be deployed on the China route with the second aircraft expected second quarter of 2014.

KQ has been a major client of GECAS which financed its acquisition of some of Embraer’s E170s that are manufactured in Brazil.

In May, Air Uganda acquired a third Bombardier CRJ-200 jet from GECAS, on a five year lease period, to replace ageing fleet and support its expansion plans.