CFAO and Michelin announced recently that they have concluded an agreement for the import and distribution of premium quality tyres in Kenya and Uganda. The joint venture is owned 51% by CFAO and 49% by Michelin. The governance is equally divided between CFAO and Michelin.
This new entity will provide the two countries – which total a population of over 90 million people – with tyres for cars, vans and light trucks. It will also import heavy goods vehicle, two-wheel, civil engineering and agricultural tyres.
Michelin wants to accelerate the distribution of its high-end tyres, with their proven longevity and durability, by seizing this growth opportunity in two regional African powerhouses. The joint venture will rely on Michelin’s long-standing partners in Kenya and Uganda.
Richard Bielle, Chairman and Chief Executive Officer of CFAO, said: “With growth rates of 4.5 % for Uganda and 5.5 % for Kenya in 2017, these markets are very dynamic. As a result, they are of interest to the biggest players in the global industry. CFAO’s alliance with Michelin illustrates our know-how on the continent – providing our partners with immediate solutions to develop markets and to offer consumers high quality products and services.”
Yves Chapot, Member of the Executive Committee of Michelin, Director of Automotive Business Lines and Regions Asia, Africa, India & Middle East, said: “The growth prospects of the African continent are immense. We want to offer Kenyan and Ugandan motorists and businesses, the best of our technologies to sustainably support their mobility. It is with this ambition in mind that we are working with CFAO, whose expertise and commercial footprint on the continent will be two of the levers for the success of this partnership serving our East African customers.”