Juanita Pienaar spoke with David Lawry, Owner of Machinery for Africa, to explore how contractors are navigating the shifting economics of equipment procurement in a constrained and uncertain market.
Why used makes sense
Across Southern Africa and beyond, the rising cost of capital equipment is fundamentally reshaping procurement strategies. For many contractors and mining operators, the decision is no longer simply about acquiring the latest machine; it is about survival, cash flow, and return on investment.
“The main factor on equipment is price,” says David Lawry. “This equipment is expensive, and especially when mines or contractors are trying to purchase a fleet of equipment, the barriers to entry are high.”
The high upfront costs are compounded by long lead times for new machinery, particularly in the mining sector. Lawry notes that for large-scale assets such as “150-ton-plus excavators or big mining trucks, lead times can stretch to up to two years or so to get a machine.”
In a volatile global environment, this delay introduces significant risk. “Waiting for two years for a machine to come through, with currency and mineral price fluctuations and the political landscape, causes uncertainty and instability,” he explains.
This combination of high capital outlay, long procurement cycles, and economic uncertainty is pushing buyers toward late-model used equipment - machines that offer immediate availability and significantly lower investment requirements.
Balancing cost and productivity
One of the central considerations in the used-versus-new debate is whether older machines can deliver comparable productivity. Increasingly, the answer is yes, particularly when buyers target low-hour or well-maintained units.
Lawry points out that the market offers a wide spectrum of used equipment options, from “really low-hour machines that have come out of rental fleets to machines that have been completely rebuilt and fitted with new components from the original manufacturers.”
These options allow contractors to match their operational needs and financial capacity. Larger, well-established companies may still favour new equipment, while mid-tier contractors often opt for premium used machines.
“Because of their expertise, their knowledge, and their cash flows, they can afford to buy the better quality used equipment, either low-hour ex-rental fleet machines or completely rebuilt machines and they operate very successfully with that equipment,” he explains.
At the entry level, smaller contractors and artisanal miners prioritise affordability above all else. “They need cheap, and they just want to get in,” says Lawry. “They don’t want to spend a lot of money on equipment and often, they don’t have the resources to.”
Understanding “low hours” and lifecycle value
A critical factor in assessing used equipment is the concept of machine hours, which varies significantly depending on the size and type of equipment.
“For a 20-ton excavator, 3 000 to 5 000 hours is a low-hour machine,” Lawry explains. “But on a 100-ton + dumper, 15 000 hours is not a lot; those machines are designed to work for 80 000 to 100 000 hours.”
This highlights an important point: the true value of a used machine lies not just in its age, but in its remaining lifecycle and maintenance history.
Component replacement also plays a key role. “If a final drive was replaced 2 000 hours ago, you know you’ve got at least another 10 000 hours left on that component,” he says.
Such insights allow buyers to make informed decisions based on long-term performance rather than headline price alone.
Assuring quality from inspection to certification
As demand for used equipment grows, so too does the emphasis on quality assurance. Buyers are increasingly seeking transparency and reliability, particularly for high-value assets.
Lawry outlines a comprehensive approach to machine evaluation, including physical inspections, service record analysis, and oil sampling. “You check for oil leaks, smoke from the engine, and the general condition of the machine,” he says. “Then you check the service records, because these machines should have proper histories.”
Advanced diagnostics, such as oil analysis, can reveal internal wear. “If anything is breaking down, you’re going to have metal particles in the oil; it’s a telltale sign,” he explains.
For more detailed assessments, Technical Analysis (TA) reports are used. “A TA2 is a comprehensive technical analysis of the machine.”
This level of scrutiny is particularly valuable for cross-border transactions, where physical inspection may not be feasible.
Unlocking access to equipment through financing
While used equipment reduces upfront costs, financing remains a key enabler, particularly in markets where access to capital is limited.
Lawry notes that financing options for used equipment are expanding. “We’ve got some companies on board that are prepared to offer finance on this equipment in South Africa and Namibia,” he says.
Digital platforms are also streamlining the process. “Clients can complete their applications electronically, and the finance house can give an in-principle answer quickly.”
However, challenges remain in certain regions. “It’s difficult to get finance facilities in Mozambique, Zambia, and Congo,” he admits, adding that expanding access to finance will be critical for future growth.
Market dynamics and regional demand
Demand for used equipment is closely tied to broader economic and commodity trends. In the mining sector, rising prices for gold, copper, and lithium are driving increased activity.
“The surge in gold and copper prices has definitely boosted mining activities,” says Lawry. “Especially among smaller operators who can mobilise quickly.”
Geographically, this activity is concentrated outside South Africa. “There’s a lot of activity in Zimbabwe, Zambia, Congo,” he notes.
At the same time, infrastructure investment is supporting demand in the construction sector. “The road construction sector in Southern Africa is doing pretty well,” he says. “There’s a lot of money being spent on roads, and demand for pavers, milling machines, rollers, and recyclers is strong.”
However, global uncertainties continue to influence the market. Currency fluctuations, fuel prices, and geopolitical tensions all play a role in shaping purchasing decisions.
“If diesel prices surge, it’s definitely going to impact the mining sector, particularly the small-scale miners,” Lawry warns.
Competition and changing market structures
Another notable trend is the growing presence of lower-cost equipment from emerging manufacturers, particularly from China.
“Chinese equipment is cheaper than the traditional OEMs,” Lawry observes. “Owners are under pressure to get the job done; they just want a machine, they don’t care what they’re going to get for it in five years’ time.”
While this introduces new competition, it also reinforces the value proposition of high-quality used equipment from established brands, which offer proven reliability and better long-term performance.
What this means for the market
As economic pressures persist and project pipelines remain uncertain, the appeal of used equipment is set to grow even further.
For contractors, the equation is clear: maximise productivity, minimise capital outlay, and manage risk. Late-model used machines, particularly those backed by robust inspection, certification, and financing, are increasingly ticking all the right boxes.
