Bell Equipment, has appointed Lonagro Mozambique as its exclusive dealer in Mozambique and Malawi.
The development comes, as part of the group’s strategy to grow its independent dealer network in select markets.
“Working through independent dealers has proven to be a model that allows us to provide better coverage and support to our customers in markets where areas are vast, and machine populations are low.
In the equipment industry, infrastructure and investment are required to provide support that is essential to users of this equipment,” said Stephen Jones, Bell Equipment’s Group Marketing Director explaining the rationale behind the company’s strategy and Longaro’s appointment.
Jones said synergies develop quickly with dealers that have complementary products that can help support the necessary infrastructure and better weather market cycles.
Lonagro is a division of Lonrho Group, which holds John Deere Agriculture dealerships in a number of African countries.
The company has made a name for itself in the highly contested agriculture equipment market by displaying a willingness to invest and take a long-term view of the countries in which it operates as well as its equipment users and future opportunities.
Bell believes a closer relationship with Lonagro would provide benefits for Bell, Lonagro and the most beneficiary being customers.
“We assessed a number of different business models as well as other potential dealers as part of a business improvement project launched early in the year,” Jones said.
He said synergies are clear with regards to management structures, scarce skills, logistics, facilities, and understanding customers.
“This gives Bell confidence that Lonagro, as a top performing John Deere dealer with a dynamic and motivated team, is well positioned to support our existing customers and grow the footprint of our machines in the region.”
Lonagro is optimistic that it will be able to supply and support the extensive range of Bell products into the territory.
“While the market remains difficult we are confident in the future of the countries. Long term agriculture, mineral resource and infrastructure opportunities are vast, and with our Bell alliance we can now supply a significant range of products that will be used in these industries.
This will allow Lonagro to continue to invest and position itself as the clear equipment provider of choice,” comments Reinhardt van Zyl, Managing Director of Lonagro.
