Francisco Motors to export jeepneys to Africa

Francisco Commercial Corp. (FCC) has closed a deal to initially export 100 units of the popular Philippine jeepney to Sierra Leone in Africa.

Another deal will enable the company to ship out 100 units per month and more importantly, form a joint venture company that will manufacture the world renowned jeepney in Sierra Leone.

The total project cost, including the joint venture company in Africa, could reach over $35 million.

Joel C. Valdes, president and chief executive officer of the Philippine Export-Import Credit Agency (PhilEXIM) said that the export potential of the venture could reach millions of US dollars.

"Africa is a country that is in dire need of reliable transportation modes and the jeepney has been found suitable to their terrain," Valdes pointed out.

PhilEXIM is a government financial institution (GFI) directly under the Department of Finance (DOF), and its primary purpose is to extend sovereign guarantees to SMEs as well as selected sectors in the export and import business seeking foreign or domestic loans.

FCC is a sister company of the Francisco Motors Co. (FMC), the remaining prominent local manufacturer of jeepneys since Sarao Motors closed shop three years ago.

The Sierra Leone government has commissioned Sateemax Enterprises to acquire the 100 jeepney units to replace its dilapidated mass transport vehicles which are not suited for its tough terrain.

The initial project cost for the 100 units may reach $2 million initially. FCC will draw a portion of the amount from commercial banks using PhilEXIM as guarantor. The initial 100 jeepneys will be shipped to Sierra Leone as completely built units (CBUs) in several batches.

The manufacture and shipment of the 100 jeepney units must be completed by the middle of 2004. By then, FCC and Sateemax Enterprises would have agreed on whether to start the second phase or the order of another set of 100 units per month. That could mean orders worth $18 million more.

Likewise, the two would have completed the mechanism for the formation of the joint venture company that would start manufacturing and/or assembling jeepneys in the African state.