Staff Writer
The Roads Contractor Company (RCC) has entered into an agreement that allows it to receive and use brand-new equipment, including graders, tippers, dozers, drum rollers, excavators and loaders.
RCC chief executive officer Dasius Nelumbu said the new machinery will help the company execute construction projects effectively and deliver on its mandate.
“For the past ten years, RCC was awarded construction projects which, due to lack of capacity in terms of equipment, were in most cases executed with a partner who had the required capacity. However, this arrangement could not yield the desired results because most of the projects’ expenditure went towards plant hire,” he said.
Nelumbu said the new equipment will be used as productive assets.
“The RCC board and management thus made a strategic decision to ensure that plant hire costs are put towards new productive assets through the lease-to-own strategy. As RCC does not have the financial means to purchase such large quantities of productive machinery, the lease-to-own option was deemed to be the best approach. This strategy enables all the projects to be executed using their own machinery,” he said.
He said the impact of this strategy will be significant, as the new equipment will ensure uninterrupted production. The move will also enable RCC to take on larger projects with higher revenue potential.
“RCC currently hires equipment from several businesses; however, this has proven to be counterproductive and unreliable, as the overreliance on equipment suppliers leaves RCC vulnerable and exposed, especially with regard to the availability of equipment when required on short notice. This strategy will not only allow RCC to capitalise on investment gains but will also allow RCC to gain significantly higher revenue and profits. It is the only gateway toward reviving RCC’s capacity. The strategy fits perfectly well into the overall turnaround efforts and, crucially, comes at the right time to meet the national demand on RCC to execute state projects as allocated by our government,” he said.
Nelumbu said the lease period is 60 months and ensures accountability and transparency among all parties.
“Each asset acquired through this agreement shall produce its own revenue from which the monthly payments are made. We are confident that this arrangement will yield positive results and thereby propel RCC to its full potential,” he said.
RCC business development manager Rebekka Horaes said the decision aims to strengthen RCC’s operational capacity and restore independence in project execution.
“For some time, RCC had relied on hiring or subcontracting equipment, which limited both efficiency and cost control. Through the lease-to-own model, we are able to progressively build our own fleet of road construction equipment while spreading out the financial commitment in a sustainable way,” she said.
Horaes said the initiative is part of RCC’s broader turnaround plan to restore its capability and competitiveness in the infrastructure sector.
“This arrangement allows RCC to execute projects directly using its own machinery, which significantly reduces external hiring costs and project delays. Operationally, it improves our agility and ability to take on more projects across the country. Financially, it’s 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 RCC as a reliable and self-sustaining state-owned enterprise,” she said.
She said the lease-to-own initiative shows that RCC is serious about rebuilding its capacity and fulfilling its national mandate.
“By strengthening our operational base, RCC becomes a more attractive and dependable partner for both public and private sector projects. We expect this renewed capacity and credibility to open doors for more collaborative ventures, including joint infrastructure initiatives and technology-driven construction solutions,” she said.
Caption
The Roads Contractor Company (RCC) will receive graders, tippers, dozers, drum rollers, excavators and loaders under a new agreement.
- Photo: RCC
