The Roads Contractor Company (RCC) has launched a lease-to-own strategy to rebuild its operational capacity, cut equipment rental costs and boost efficiency on national projects.
This was announced by RCC chief executive Dasius Nelumbu on Tuesday.
He said the RCC has been forced to partner with private companies to execute state-awarded projects for over a decade due to its lack of construction machinery.
This arrangement yielded limited results as most of the company’s project expenditure went towards equipment rentals, Nelumbu said.
“The RCC board and management thus made a strategic decision to ensure plant hire costs are put towards new productive assets through the lease-to-own strategy.
“As the RCC does not have the financial means to buy such large quantities of productive machinery, the lease-to-own option was considered the best approach.
This strategy enables all the projects to be executed using our own machinery,” he said.
Nelumbu said the new equipment would enable uninterrupted production.
“The new equipment will place the RCC in a position to take on large projects with significant revenue yields.
The RCC currently hires equipment from several businesses, but this have proven to be counterproductive and unreliable as the over-reliance on equipment suppliers leaves the company vulnerable and exposed – especially with regards to the availability of equipment when required at short notice,” he said.
He said the strategy would help the RCC boost revenue and profits, strengthening the company’s capacity and financial stability.
“The strategy fits well into the turnaround overall efforts and is, crucially, in time to meet the national demand on the RCC to execute state projects as allocated by our government.
“The lease period is 60 months, and the agreement ensures accountability and transparency from all parties involved in this arrangement. Each asset acquired through this agreement will produce its own revenue from which the monthly payments are paid.
“We are confident that this arrangement will yield positive results and, thereby propel the RCC to its full potential,” Nelumbu said.
The new equipment fleet includes graders, tippers, dozers, drum rollers, excavators, loaders, and other vehicles.
“Some of the delivered equipment are at the Henties-Uis road project and are already fully operational,” he said.
Meanwhile, RCC business development manager Rebekka Horaes says the project is a prudent investment model that balances asset growth with cash flow stability.
“We’re acquiring long-term assets without placing excessive strain on the company’s finances, a crucial move as we continue to rebuild and reposition the RCC as a reliable and self-sustaining state-owned enterprise.
“The lease-to-own initiative sends a clear signal to the market that the company is serious about rebuilding its capacity and fulfilling its national mandate.
“It builds confidence among partners, clients, and financiers by demonstrating that we are taking deliberate, structured steps toward growth,” she says.
