Autochek expands into North Africa, acquires Kifal Auto

Autochek, the automotive technology company, has expanded its reach beyond the West and East African markets with the acquisition of Kifal Auto, a Morocco-based automotive technology startup. Jide Adamolekun, the Chief Financial Officer at Autochek, recently discussed the details of this strategic deal in an exclusive interview with CNBC Africa. The move to acquire Kifal Auto was driven by a range of factors, according to Adamalekun. One of the primary attractions was Morocco's status as one of the fastest-growing economies on the continent, boasting a growth rate of 7.2% last year. Additionally, Morocco is home to some of the most advanced automotive companies in Africa and has a significant production capacity of approximately 300,000 vehicles, with 400,000 vehicles being exported annually. The country also possesses advanced financial systems. Despite these positive elements, Adamalekun highlighted that there are still challenges in terms of vehicle ownership penetration, with only about 1,000 vehicles per thousand people in Morocco, compared to higher rates in developed nations like the UK. Access to financing remains a particular hurdle, but Autochek views it as an opportunity for growth and development in Africa. Moreover, the acquisition of Kifal Auto was influenced by the company's founder, Mizar, who is recognized as an exceptional entrepreneur. Adamalekun emphasized the strong cultural alignment between Autochek and Kifal Auto, as well as Kifal Auto's robust systems, processes, and exemplary customer service. In terms of Autochek's overall business strategy, the company aims to make vehicle ownership and financing accessible to a wide range of Africans to support economic development. With a focus on increasing vehicle ownership and mobility, Autochek sees North Africa as a crucial market for expansion and plans to extend its services across the continent. Adamalekun discussed the importance of investment in the automotive market and highlighted the significant growth potential, with projections indicating a $14 billion market in the next five years. He also stressed the critical role of financing in driving vehicle sales, noting the challenges faced in Nigeria due to a lack of accessible financing options. Autochek's platform facilitates collaborations between dealerships, financial institutions, and repair services to enhance auto financing penetration. By ensuring the quality and financeability of vehicles, the platform has already facilitated financing for over 1,000 vehicles, benefiting SMEs and improving productivity across various sectors. Adamalekun underscored the significant impact of improved transportation infrastructure on economic productivity, with Autochek's efforts aiming to reduce resource wastage and enhance mobility for thousands of households and businesses. While the exact cost of the acquisition was not disclosed during the interview, Adamalekun emphasized that the deal with Kifal Auto represented a valuable opportunity to enhance the lives of individuals in the region. In conclusion, Autochek's acquisition of Kifal Auto symbolizes the company's strategic expansion into North Africa and its commitment to making vehicle ownership more accessible and affordable across the continent.