The Octagon, Accra-Bank of Africa (BOA) Ghana has signed a Memorandum of Understanding with the Car Rentals Association of Ghana (CRAG) to establish a tailored asset financing for members of the Association.
The arrangement is churned from the Vehicle Finance Facility (VFF) scheme which is one of the Bank’s flagship products.
The partnership aims to enhance access to affordable vehicle financing options for CRAG members, enabling them to expand their fleets and grow their businesses.
The MoU, signed by officials of both BoA (Ghana) and CRAG will improve access to vehicle financing and strengthen acquisition across the car rental industry with a cascading effect on the Tourism sector as well.
An opportunity for members of CRAG
Under the arrangement, members of CRAG can access up to 90% of the vehicle cost from the Bank’s vendor list or recommended vendors.
Members get to enjoy competitive and fixed interest rates starting from less than 15% per annum on new and used cars that are less than five years from year of manufacture.
Under the framework of the MoU, members of CRAG are entitled to privileged services with limited documentation and expedited Turn-around Time, once they apply for the Vehicle Finance Facility.
Speaking at the signing ceremony, the Executive Director for Business Development at Bank of Africa, Mr. William Boateng, assured members that applications would be handled under the umbrella of the agreement. “That is the essence of today’s historic event”, he said.
On his part, CRAG President Mr. Michael Sarpong described the agreement as a breakthrough for the association.
“This arrangement with Bank of Africa, is a very good deal for our association in terms of us accessing cars or sourcing cars from our vendors,” he said.
He explained that limited access to financing had made it difficult for members to acquire new vehicles.
“Without that, it will be very difficult for us to access new cars because some of our customers complain sometimes that they need to use new cars and all that, and the conditions for us to get new cars were difficult,” he said.
Mr Sarpong said the new framework in this arrangement would allow members to expand and modernize their fleets.
BoA is committed to economic growth
Addressing the press after the ceremony, Mr. William Boateng, said the partnership aligns with the Bank’s broader mission to support key sectors of the economy.
He said that the Bank’s role goes beyond traditional banking.
“We look out for the areas that prepare the development of the country and that is where we come in,” Mr. Boateng explained.” He described the car rental industry as one that shapes visitors’ first impressions of Ghana.
“Bank of Africa, Ghana is part of the BMCE group that is represented in 20 African countries, with presence in China, Paris and Dubai as well. We have a continued commitment to operate and invest in the productive sectors of the economy,” he said.
A call for collaboration and partnership
Mr. Boateng further stated that the improving economic climate presents an excellent opportunity to build sustainable partnerships that will bolster the gains made so far.
It requires all of us to collaborate. “For us, at Bank of Africa, we are keen to partner institutions and sectors that drive national development.
The signing ceremony was also attended by other Officials of Bank of Africa including Deputy Managing Director, Madam Fatoumata Gakou, Executive Head and Company Secretary, Mr. Muctar Abbas, Head, Financial Control, Mr. Prince Aitee, Head Retail, Madam Haleema Akyireba, Sales Coordinator, Mr. Stephen Sowah, SME Coordinator, Mr. Jacob Wilberforce, Head HR and Administration, Mr. Eric Kojo Van-Ess and Head, Credit Risk Madam Effie Amissah, Head, Credit Analysis and Group Sales Coordinator for Anglophone subsidiaries, Mr. Emmanuel Bambara.
