The machines will be leased for five years, in partnership with the Indian auto maker Tata, through its Africa subsidiary Tata Africa Holdings.
The Tanzanian consortium, which Vaell declined to reveal citing non-disclosure agreements signed between them, are involved in gold and limestone mining.
Vaell’s current clientele include Haco, ARM Cement, BAT and Bamburi.
A Kenyan asset leasing company has won a Sh350 million ($4 million) deal to hire out machinery to a consortium of Tanzanian mining firms.
Vehicle and Equipment Leasing Limited (Vaell), with headquarters in Nairobi, will lease excavators, tippers, wheel loaders, breakers, graders, drills and compressors to the Tanzanian firms.
The machines will be leased in partnership with the Indian auto maker Tata, through its Africa subsidiary Tata Africa Holdings.
“We are excited to be part of a significantly large transaction that shall see the Tanzanian mining sector grow,” said Sandeep Tickoo, the head of auto division at Tata Africa in a statement Thursday.
The machines will be leased for five years. The Tanzanian consortium, which Vaell declined to reveal citing non-disclosure agreements signed between them, are involved in gold and limestone mining.
Family owned
Vaell is a family business established eight years ago. It has a presence in 20 African countries through partnerships. However, they have office presence in three East African countries.
“Vaell Uganda, Tanzania, Rwanda and Zambia are part of our lease infrastructure to facilitate our clients to have vehicles and machinery throughout the region,” said Mr Paul Njeru, group managing director of Vaell.
The company last month organised a leasing conference to encourage counties to lease vehicles, machines and equipment instead of buying.
According to Vaell, leasing is more practical for companies and government.
“We are excited that many companies are now realising the numerous advantages of leasing as well as the potential leasing would bring to their organizations. The main advantage is that companies are able to plan their finances well as leasing only requires small amounts of payments over a long period of time, depending on the terms agreed on,” said Mr Njeru.
Vaell’s current clientele include Haco, ARM Cement, BAT and Bamburi. In 2011, Hyundai Motors East Africa Corporation signed a leasing deal with Vaell, aimed at increasing its vehicle sales in the country.
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