Tanzanian traders warned against costly pitfalls in UK truck purchases

Dar es Salaam. The Government of Tanzania, through its High Commission in the United Kingdom, has issued a crucial warning to Tanzanian businesspeople planning to purchase used trucks from the UK.

This comes after a wave of complaints from traders who have faced significant challenges, including delays and receiving substandard vehicles.

The Embassy is urging all traders to exercise greater caution to avoid financial losses and the frustration of unfulfilled orders.

In a statement seen by The Citizen on August 31, 2024, Tanzania’s High Commissioner to the UK, Mr Mbelwa Kairuki, outlined the growing concerns.

"We have seen an increase in the number of complaints from traders who have sent money to the UK to purchase trucks, only to face delays of over six months without receiving their vehicles," he said.

"Some who have received their trucks have found them to be far below the agreed-upon standards."

The UK is a popular destination for Tanzanian cargo transporters looking to buy used trucks.

The country’s right-hand driving system, which aligns with Tanzania’s, the relatively affordable prices, and the reputation for durable vehicles make the UK an attractive option.

However, the recent issues have cast a shadow over this previously reliable market.

For many Tanzanian traders, purchasing a truck is a significant investment, often funded by bank loans.

The stakes are high, and delays or poor-quality vehicles can lead to serious financial strain.

In light of these challenges, the High Commissioner’s warning is timely. Ambassador Kairuki emphasised the need for due diligence.

"The Embassy advises traders to take necessary precautions when making purchases to avoid potential inconvenience and financial losses," he stated.

Business experts have praised the Embassy’s decision to issue this warning, highlighting the importance of vigilance in international trade.

"This move by the Tanzanian government is essential," said a logistics consultant based in Dar es Salaam, Mr Hussein Mrema.

"It’s a wake-up call for traders to be more cautious and informed about their transactions. The risks of international trade are real, and being proactive is the best way to protect oneself."

One of the key recommendations from the Embassy is to verify the registration and legitimacy of the company you’re dealing with.

"This verification can be done through the UK government website, and it’s free of charge," noted Ambassador Kairuki. "It’s a simple step, but it can save traders from falling victim to scams."

He also stressed the importance of entering into a formal purchase agreement. "There are Tanzanians in the diaspora who run law firms in the UK. These professionals can help draft contracts and, if necessary, follow up on any issues that arise because they are on the ground," he explained.

One of the most critical pieces of advice from the High Commissioner is to use a Letter of Credit (LoC) for payments rather than sending cash directly through Telegraphic Transfer (TT).

"LoC is a safer method, especially for large payments," said Mr Kairuki. "It offers protection because the money will not be released to the seller until the agreed conditions are met. Yes, there is a small additional cost, but the security it provides is worth it."

A finance expert, Mr John Nkonoki, echoed this sentiment. "Using a Letter of Credit is a smart move," he said. "It’s like having insurance on your transaction. You know that your money is safe until the seller delivers what was promised."

Before making any payment, traders are advised to conduct a thorough check of the truck’s history. "To successfully carry out this inspection, it’s essential to obtain the vehicle’s registration number as it was registered in the UK," Mr Kairuki explained.

"The UK government website offers a system to provide the complete history of the vehicle, including any accidents it has been involved in and how often it has been serviced."

Pre-shipment inspections are another crucial step. "Ensure that the vehicle is inspected before it is shipped to confirm that it matches the agreed specifications," he said. "This simple step can prevent a lot of heartache down the road."

The Embassy is hopeful that these guidelines will help Tanzanian traders navigate the complexities of international truck purchases more safely.

"We believe that these tips will help those intending to purchase trucks avoid the purchasing challenges and inconveniences that arise from long-distance transactions," said the ambassador.