CFAO and Michelin team-up to market high-quality tires in Kenya and Uganda
CFAO and Michelin announce today the conclusion of an agreement for the import and distribution of premium quality tires in Kenya and Uganda, in a joint venture 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, that total a population of over 90 million people, with tires for cars, vans and light trucks, and it will also import heavy goods vehicle, two-wheel, civil engineering and agricultural tires. Michelin wants to accelerate the distribution of its high-end tires, 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, says: "With growth rates of 4.5 percent for Uganda and 5.5 percent 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, comments: "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."