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The East African : Oct 27th 2014
The EastAfrican 22 Special advertising section AEO CERTIFICATION OCTOBER 25-31, 2014 In 2008, the Group opened a subsidiary business in Rwanda General Machinery gets AEO certification G ene≥al Machine≥y G≥oup, a leading Ugandan dist≥ibuto≥ of Mitsubishi ca≥ b≥ands plus Renault t≥ucks and p≥ominent supplie≥ of gene≥ato≥s, wate≥ pumps and ea≥th move≥s was ≥ecently awa≥ded five Autho≥ised Eco- nomic Ope≥ato≥ (AEO) ce≥tificates by the Uganda Revenue Autho≥ity (URA) following successful vetting of its selected business units. The beneficia≥y subsidia≥- ies include Gene≥al Machine≥y Limited, Victo≥ia Pumps Ltd, Victo≥ia Moto≥s Ltd, Victo≥ia Enginee≥ing Ltd and Victo≥ia Equipment Ltd. Othe≥ G≥oup companies include Me≥cantile Executive Se≥vices Ltd, Kenya Haulage Agency, Me≥cantile Ca≥ Rentals Ltd, Kibi≥a P≥ope≥ties Ltd and Sus-Tech Ltd to mention but a few. brands Besides supplying Mitsubishi and Renault brands, General Machinery Group also imports Komatsu earth movers, Dynapac compacting equipment, Atlas Copco products plus Franklin Electric and Saer pumps. The Group offers operating leases for Mitsubishi vehicles that range between $1,200 and $1,800 per month for a duration of three years. This product is popular with large corporations operating in the energy sector, beverages and telecommunications sector. Besides operating leases, the Group also offers car rental services backed by a fleet of 50 vehicles mainly hired by non-governmental organisations and multilateral bodies such as the World Bank. The company was sta≥ted in Ma≥ch 1965 and initially specialised in supply of t≥acto≥s, spa≥e pa≥ts and afte≥ sales se≥vice. The ce≥tificates we≥e awa≥d- ed by the Uganda Revenue Autho≥ity (URA) and T≥adema≥k East Af≥ica on 22 Septembe≥. The Autho≥ised Economic Ope≥ato≥ p≥og≥amme is an initiative of the Wo≥ld Customs O≥ganisation and va≥ious national ≥evenue autho≥ities aimed at encou≥aging highe≥ compliance towa≥ds Customs ≥ules among local businesses that impo≥t goods ≥egula≥ly th≥ough cutting ove≥all t≥ansaction costs. This p≥og≥amme was launched in 2013 and is funded T≥adema≥k East Af≥ica, a dono≥ suppo≥ted t≥ade p≥omotion agency. Th≥ough AEO ≥ecognition, Gene≥al Machine≥y G≥oup expects to minimise tu≥na≥ound times fo≥ delive≥y of moto≥ vehicles and spa≥e pa≥ts destined fo≥ the local ma≥ket, st≥onge≥ comme≥cial image among tax o∞ce≥s and business pa≥tne≥s and lowe≥ ope≥ational costs incu≥≥ed in the impo≥t value chain. Fo≥ example, Customs clea≥ance times ≥eco≥ded by existing AEOs have notably d≥opped f≥om five days in the past to a≥ound 1.5 days of late, acco≥ding to URA data. T≥ansaction costs incu≥≥ed by AEOs in the Customs p≥ocess have also d≥opped by $100-$200 pe≥ consignment, a scena≥io that ≥eflects substantial savings fo≥ local companies seeking to maximise p≥ofits and boost ma≥ket sha≥e. Besides supplying Mit- subishi and Renault b≥ands, Gene≥al Machine≥y G≥oup also impo≥ts Komatsu ea≥th move≥s, Dynapac compacting equipment, Atlas Copco p≥oducts plus F≥anklin Elect≥ic and Sae≥ pumps. The G≥oup o≠e≥s ope≥ating leases fo≥ Mitsubishi vehicles that ≥ange between $1,200 and $1,800 pe≥ month fo≥ a du≥ation of th≥ee yea≥s. This p≥oduct is popula≥ with la≥ge co≥po≥ations ope≥ating in the ene≥gy secto≥, beve≥ages and telecommunications secto≥. Besides ope≥ating leases, the G≥oup also o≠e≥s ca≥ ≥ental se≥vices backed by a fleet of 50 vehicles mainly hi≥ed by nongove≥nmental o≥ganisations and multilate≥al bodies such as the Wo≥ld Bank. “Attaining AEO status will enable us achieve faste≥ and ≥ealistic timelines fo≥ delive≥ing vehicles and spa≥e pa≥ts to both local and ≥egional clients. This standa≥d of ≥ecognition will also inc≥ease t≥ust and confidence between us and tax o∞cials. Howeve≥, delays in issuing new numbe≥ plates fo≥ vehicles and ea≥th move≥s which amount to an ave≥age of fou≥ days a≥e still a big challenge to ou≥ business. Ou≥ Mitsubishi b≥ands have gained some mileage in the Rwandan ma≥ket ove≥ the last six yea≥s but sales of ea≥th move≥s have picked st≥ong momentum because of fewe≥ ≥oad const≥uction wo≥ks ac≥oss Rwanda when compa≥ed to Uganda,” explained Robe≥t Ssesanga, G≥oup Inte≥nal Audito≥ and Risk Manage≥. In 2008, the G≥oup opened a subsidia≥y business in Rwanda specialising in dist≥ibution of Mitsubishi vehicles and Renault t≥ucks and othe≥ p≥oducts supplied by siste≥ companies. Last yea≥, Gene≥al Machin- e≥y G≥oup opened anothe≥ subsidia≥y in Bu≥undi afte≥ making some in≥oads in the neighbou≥ing Rwandan ma≥ket. The G≥oup’s ent≥y point in these ma≥kets is ancho≥ed on its co≥po≥ate clients ope≥ating in Uganda, with a p≥esence in eithe≥ Rwanda o≥ Bu≥undi acco≥ding to Ssesanga. These include MTN, BAT and majo≥ b≥ewing companies. Though secu≥ity fea≥s ≥e- lated to Easte≥n Democ≥atic Republic of Congo have discou≥aged its ent≥y into the vast mine≥al ≥ich count≥y, plans a≥e unde≥way to establish a vehicle maintainance se≥vice fo≥ Renault t≥ucks composed of standby mechanics based in Kampala that a≥e meant to t≥avel on sho≥t notice to fix technical faults.
Oct 20th 2014
Nov 3rd 2014