Dar es Salaam. CFAO Mobility Tanzania is tackling long-standing misconceptions that have kept majority of Tanzanians from embracing European car brands, such as Volkswagen, Mercedes-Benz, and Fuso.
The vehicles have often been perceived as expensive to maintain and ill-suited to local roads and weather conditions, discouraging potential buyers from opting for them.
However, CFAO Mobility which is the authorised dealer for such brands, argues that such concerns are largely unfounded.
“When you buy a brand-new car, it comes with the manufacturer’s warranty, which provides extended periods of trouble-free use before any major servicing is required. This reduces maintenance costs significantly over the long term,” said the company’s sales and marketing director, Ms Tharaia Ahmed.
The company aims to dismantle the notion that maintaining European cars is prohibitively expensive. The company offers genuine spare parts and certified technicians trained to service the specific brands.
“There’s a misconception that maintaining European cars is difficult and expensive, but with CFAO Mobility’s service centres across the country, we ensure that repairs and maintenance are accessible, reliable, and affordable,” Ms Ahmed explained.
Concerns about the ability of European vehicles to handle Tanzania’s roads and climate are also addressed by the company by ensuring that the models sold locally are adapted to meet the country’s environmental challenges.
Fuso trucks, for example, are built to carry heavy loads over rough terrain, making them particularly well-suited for the Tanzanian road network. Ms Ahmed further advised against purchasing used vehicles from foreign markets, noting that the secondhand cars are often not built for Tanzanian conditions.
“This applies not just to European brands but to vehicles from other regions as well. Buyers should opt for new vehicles that are tailored specifically for our market,” she said.
With access to high-quality service, genuine parts, and expert support, CFAO Mobility is making premium European brands a practical option for Tanzanian drivers.
“We are committed to breaking the stigma surrounding European cars by demonstrating that they are not only reliable and safe but also affordable to maintain when properly managed,” Ms Ahmed said.
Share this news
This Year's Most Read News Stories
Ground handling firms in Zanzibar start cutting jobs
ZAT and Transworld, companies providing ground handling services at Abeid Amani Karume International Airport, have to lay off workers to stay afloat.Continue Reading
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
‘Sovereignty alone won’t solve Zanzibar economic woes’
The ruling party in Zanzibar on Monday , March 13, responded to growing demands for full autonomy in the Islands, saying sovereignty doesn’t guarantee economic strength.Continue Reading
