The real estate and construction industry in Africa is taking a huge leap and booming!
As the different countries invest heavily in mega-construction projects like roads, airports, railways, ports etc., as part of their millenium development goals (MDG’s), and a large middle and upper middle class comes into being creating heavy demand for housing, schools, hospitals and social amenities, the construction industry is taking a front seat.
Turnaxis has identified this market as a key growth area and economic driver.
We came together on a real estate opportunity, but quickly came across a number of hurdles when we sought to hire equipment. Either the equipment was unavailable when we needed it, or whenever it was available it was simply the wrong equipment.
We spoke extensively with real estate developers and contractors, who confirmed facing the same hurdles over and over. The stories were the same: developers were constantly unable to source the right type of equipment when they needed it, causing significant project delays and increasing the overall cost of their projects.
While experiencing this challenge we also saw an opportunity to be able to close this gap, and provide a much needed service.
So, we came together and formed Turnaxis.
In partnering with Turnaxis, developers and contractors of any construction project and size, whether infrastructural (road, bridges), residential (houses, apartments) or commercial (office buildings, malls etc.) will realize the following benefits:
- Reduced capital expenditure, and cost containment.
- Right tool for the right job
- Project deadlines met or surpassed.
- Professional service delivery and expertise.
Because we focus completely on construction equipment leasing, Turnaxis will provide best-of-breed equipment tailored to the job at hand.
As well, we will be able to address a big part of the construction value chain, with diverse equipment from excavators to cement mixers, compactors and dozers. This will increase value to Turnaxis and yield per project, whilst providing the contractor or developer with a one-stop shop.
Not all jobs are created equal, and not every piece of equipment is suited to all jobs. By diversifying our catalog, we can match equipment to job needs so the job gets done right the first time.
The average hourly charge to rent a wheel loader, backhoe or excavator is $100 per hour. Our long-term lease method will allow us the ability to bring down the cost to $75 per hour because of economies of scale, providing significant savings for customers. With a 25 percent cost savings per hour, equipment leasing from Turnaxis will certainly provide cost benefits to our customers, and their customers.
We’ve been in advanced talks with nine contractors prior to our launch, and the response has been extremely encouraging. Five of those nine have shown interest in partnering with Turnaxis to meet their various equipment requirements.
LAPSSET, the biggest infrastructure project in all of East and Southern Africa, involves the building of oil pipelines, a port, roads connecting Lamu in Kenya to Ethiopia, South Sudan and Uganda, storage, railways and much, much more. It’s a five-year project with an estimated cost of $50 billion (about the current GDP of Kenya). The LAPSSET project has shown significant interest in Turnaxis.
We have already invested in two 5 ton wheel loaders ($160,000.00) as part of the initial investment from the founder shareholders.
Interested in hearing more? Click the “business profile” tab at the top of this page for details on how you can get involved.
Edwin is an IT professional with more than 16 years of experience. He’s worked with global IT companies Dimension Data and Microsoft, driving a multi-million dollar book of business as Head of Business Unit, Strategist and Principal Solution Specialist.
A strong passion for real estate, construction as well as the clean energy sector has driven him to take time to study and understand these markets, identifying key challenges, growth segments and areas of opportunity.
Moses is a IT banking systems specialist with more than 15 year’s experience. He has worked for Co-operative Bank of Kenya and World Council of Credit Unions (WOCCU) as a project manager and head of department responsible for computerizing Co-operative Societies in Kenya.
A real estate enthusiast and investor with a particurlar interest in low income housing, having worked with diverse communities in Kenya.