congoTractafic

All data are collected in the Fiscal Year of 2008-2009.

Company Profile and History

TRACTAFIC is the trade name of the French Group, OPTORG, a subsidiary of ONA, Morocco’s leading diversified group.

Tractafric, which was the licensed representative of the Caterpillar Tractor Co., a US corporation, for Central Africa, was acquired by Société du Haut-Ogooué (SHO) in 1937. SHO, a business founded in 1894, was doing business throughout Central Africa. SHO became part of the Optorg Group in 1947. Created in 1919 by a major textile group from northern France to develop its wholesale distribution business in different parts of the world-notably in Russia and in the Far East-the Optorg Group decided during this time to strengthen its African focus. It therefore acquired an interest in SHO.

After acquiring SHO in 1955 OPTORG bought Établissements Peyrissac, a company doing business in West Africa since 1908 and specializing in general business activities (food, hardware, construction materials, cars and motorcycles, etc.).

In 1993, Morocco’s largest industrial and financial group, ONA, acquired Optorg. With more than 25,000 employees and consolidated revenue of 33 billion dirhams, ONA owns interests in mining, agro-food, retail, finance and growth industries: telecommunications, energy, the environment and real estate. The group is listed on the Casablanca and Paris Stock Exchanges.

In 2007 Southern African construction and mining equipment Caterpillar (Cat) dealer Barloworld Equipment partnered with Tractafric to form Bartrac Equipment in the DRC to service the earthmoving equipment needs of the DRC’s copper- and cobalt-rich Katanga province. The project will directly supply equipment suitable for the construction and rehabilitation of road and rail links, office and residential buildings, and power sector installations in the Katanga province. Increased availability of earth-moving equipment and maintenance services will help enhance efficiency and productivity in the mining sector, and is expected to encourage downstream growth.

In Country Location

Bld du 30 Juin, BP 8615, Kinshasa 1;
Telephone: +243 88 44615
Telefax: +243 12 33608

Services and Products

TRACTFAFRIC, a specialist in retail distribution in Africa, has been expanding its operations in two different areas: equipment and diesel engines and cars and trucks. It distributes CATERPILLAR (equipment for public works, mining, power plants, etc.), HYSTER AND MANITOU (fork lifts) and PERKINS (diesel engines) in the DRC.

TRACTAFRIC MOTORS distributes trucks and cars in the DRC including Mercedes-Benz, Chrysler, Jeep, Dodge, Hyundai, Mazda and BMW.

Number of Employees

1,273 employees; 130 in the DRC

Financial Information

The OPTORG Group reported revenue of €417 million in 2007, a significant increase over 2006. TRACTAFRIC sales in the DRC in 2004 were US$ 25 million. Start-up of the Bartrac joint venture recorded sales of MAD 66m in 2007.

Market Share

Tractafric Equipment holds the Cat dealership for the DRC

Business Objective

Providing world class services in Africa

Business Model

TRACTAFRIC introduced a new strategic plan in 2009 focusing on training of its service personnel at dedicated training centres; improvement quality of service through recruiting and training African executives; expanding infrastructure and services to mines and oilfields; the rollout of ”packaged” products and services” available through a single provider; the launch in 2008 of a car and truck leasing service in collaboration with EUROPCAR in several central African countries.

Ownership of Business

TRACTAFIC is the trade name of the French Group, OPTORG, a 100% percent owned subsidiary of ONA. Tractafric Equipment has a 50:50 joint venture with Barloworld.

Benefits Offered and Relations with Government

With the exception of administrative tax, investments of public use shall benefit from total exemption from fees/rights and taxes at importation for machines tools and new material, spare parts that do not exceed 10% of the CIF value of the said equipment.

With the exception of administrative tax due to Customs fixed at 5% of the CIF value of the imported equipment, the approved companies will benefit from total exemption of fees/rights and tax at importation, for machinery, tools, new material, spare parts not exceeding 10% of the CIF value of the said equipment, necessary for equipping a new company or an existing company. Second hand heavy engines, ships and aircraft are accepted on total exemption.

The Bartrac project is expected to generate tax revenues for the government, estimated at more than $2 million per year for the next five years. It will also contribute to the economy through local sourcing of goods and services, mostly related to transportation, fuel, utilities, and housing.

Product Development

Barloworld Equipment and Tractafric Equipment are setting up an administrative centre for the JV in Lubumbashi, with a full facility, including a parts store and workshops, to be located in the main copper-mining area around Kolwezi. Bartrac Equipment has already secured an order for Cat mining equipment from Phelps Dodge for its new Tenke Fungurume operation in the Katanga province and will also be supporting Wilson Bayly Holmes-Ovcon construction with equipment for the development of this site.

In 2008 MIGA (Multilateral Investment Guarantee Agency-a member of the World Bank Group) issued a guarantee of $25 million to Bartrac Equipment. MIGA’s guarantee is for up to 10 years and covers the risks of war and civil disturbance, transfer restriction, and expropriation.