Shortcuts to local authorities

In 1995, Kjaer Group A/S acquired the exclusive rights to sell Nissan vehicles in Uganda. In that connection, a local joint venture by the name of Nis Uganda Ltd. was established. It later became Motorcare Uganda Ltd. with IFU as a co-investor.

Today Motorcare Uganda Ltd. is a well-established company selling Nissan vehicles and providing various repair services. In its efforts to maintain its position in the Ugandan market, the company plans to establish a network of 3-4 service centres as sole proprietorships with a franchise agreement with Motorcare Uganda Ltd.

The joint venture is based on the sale of cars, as well as maintenance and repairs. The total amount invested is DKK 44.5 million, of which IFU has invested approx. DKK 12 million.

Under the PSD Programme, the project receives funding for training and technical assistance in order to upgrade staff qualifications at garages and warehouses. In addition, the programme provides extensive funding for initiatives to improve the external environment and the working environment in connection with the move to new premises.
Kjaer Group and Danida have also initiated a project under the Public Private Partnerships programme to implement in Motorcare Uganda the 10 principles of good corporate citizenship under the UN’s Global Compact. This project also comprises the company’s subsidiaries in Mozambique and Sierra Leone.

“The countries we invest in involve higher risk than many other countries. IFU shares that risk with us. It is essential to have a co-investor with an official status when we negotiate with the local authorities.” Mads Kjær, CEO, Kjaer Group Web: www.kjaergroup.dk

The above case is from www.goglobal.dk (27/6-2006).