Building South Africa's entrepreneurial base is a central component of its long-term development goals, as defined in numerous strategies both public and private. Truck transport has defined itself as an entrepreneurial industry and continues to attract new entrants hungry for a slice of the cargo pie. However, without the necessary support, these new operations invariably crash and burn. Offering advice and expertise through integrated services is one way of nurturing our fledgling trucking tycoons. 

Broad-based Black Economic Empowerment (BBBEE) is a key part of the South African business landscape, says Aluwani Ramabulana, strategic business development director, DaimlerChrysler Financial Services (DCFS), and as such, in support of the BBBEE scorecard, particularly enterprise development, DCFS has launched a mobility solution that will facilitate development of the emerging transport sector. 
 

	Putting budding transporters behind the wheel of their own expertise is what DCFS new BBBEE mobility solution is all about.

Lowering barriers
"In researching the product offering, DCFS found that there was a funding gap for emerging transport entrepreneurs. Many operators had a lack of working capital, inadequate skills and knowledge of transport and logistic issues and were unable to raise asset finance," says Ramabulana. "Easier access to finance became a deciding factor when purchasing a vehicle. Although large companies try to close the gap with owner-driver schemes, there is a need to develop the entrepreneurs in the sector."

While similar products have been developed by other financial institutions, DCFS offers an integrated solution to its customers, adds Ramabulana. "This means that a customer purchases the vehicle from the brand, like Mercedes-Benz Commercial Vehicles for example; the vehicle is financed and insured by DCFS while debis Fleet Management offers services such as tracking or fuel and maintenance management." 

Prime plus one
The product provides emerging transport entrepreneurs with a lower entry barrier by lowering owner contributions and initial capital outlay, he says. "The deposit required is low and we have allowed them flexible terms to repay the VAT. Our package includes a competitive rate with interest at prime plus one which eases cash flow management."

DCFS also believes that transfer of skills is a requisite to improve probability for contracts and operators to succeed in the long-term, says. Ramabulana, "Quite often we see new businesses fail only because the owner has insufficient business management experience. We have a panel of possible management companies that the customer can hire to assist with these and other issues."

Depending on the customer's requirements, DCFS will facilitate the appointment of a management company to assist the customer with various business management processes, for example, tax issues, assist in planning for a specific market, bookkeeping, assessing and recruiting drivers and negotiating rates. 

According to Ramabulana, "to date, DCFS has finalised owner driver contracts worth over R120 million and concluded BBBEE contracts in excess of R 50million to emerging SME operators. This is the start of an exciting journey for us."