CMC Motors Group shuts down operations in Uganda, Kenya and Tanzania

CMC Motors Group, a leading dealer in motor vehicles in East Africa, has announced that it will be ceasing operations in Uganda, Kenya, and Tanzania.

In a statement released on January 17, the company cited sustained market challenges, including economic pressures, currency depreciation, and rising operational costs, as the reason for its decision.

CMC Motors Group, which was originally known for distributing Ford, Mazda, and Suzuki vehicles, has been in operation since 1948. The company had shifted its focus to agriculture machinery in recent years, but despite restructuring efforts, it was unable to overcome the market challenges.

The company’s Managing Director, Sakib Eltaff, had previously stated that the agriculture sector in Africa was growing from strength to strength, and that the demand for agriculture solutions was stronger than ever. However, it appears that this shift in focus was not enough to save the company.

The closure of CMC Motors Group is expected to result in the loss of jobs for its employees. The company has stated that it will support its employees during the transition and ensure a smooth and orderly wind-down of its operations.

The news of CMC Motors Group’s closure has sent shockwaves through the automotive industry in East Africa. The company’s departure will leave a significant gap in the market, and it remains to be seen how other dealers will respond to the challenge.

CMC Motors Group’s parent company, al-Futtaim Group, has investments in various sectors, including automotive, electronics, insurance, and retail. The group’s decision to close CMC Motors Group is likely to have significant implications for the regional automotive industry.