Sensys Gatso Group Expands Traffic Safety Solutions to Ghana with New Joint Venture

Sensys Gatso Group, a global leader in traffic safety solutions, has taken a significant step in its international expansion strategy by commencing the issuance of warning notices in Ghana. This initiative is part of an 11-year contract awarded to Nationwide Traffic Management & Enforcement Ltd (NTMEL), a joint venture in which Sensys Gatso holds a 40% stake. The contract, valued at SEK 800 million, aims to design, build, finance, operate, and maintain a comprehensive national traffic safety program in Ghana.

NTMEL, in close collaboration with the Ghana Police Service (GPS), the National Road Safety Authority (NRSA), and other governmental stakeholders, has built a full-fledged traffic safety program within 17 months. As part of a public awareness campaign to ensure public acceptance, warning notices began being issued on 4 June 2024, with the issuance of fines scheduled to start on 18 July 2024.

Edmar van der Weijden, Managing Director of NTMEL, expressed his pride in reaching this milestone: "We are honored to start making a life-saving difference for road users in Ghana. Together with our public sector partners, we have worked productively and in excellent spirit over the past 17 months to achieve this milestone. With the issuance of warning notices, soon to be followed by fines, there is no doubt that the Ghanaian government, with its commendable traffic safety goals, will soon achieve encouraging results that save lives and reduce injuries."

The current NTMEL organization consists of 20 trained employees in various departments, including back-office incident processing and validation, call center operations, roadside traffic monitoring, technical support, finance and accounting, human resources, and management. The organization is expected to grow and employ more than 100 staff members over the coming years as fixed and mobile monitoring equipment is gradually implemented in the nationwide program. Several interfaces have been created between Sensys Gatso's software platform and government portals and databases, thoroughly tested to ensure smooth operation and payment handling with the highest level of integrity.

Ivo Mönnink, CEO of Sensys Gatso Group, emphasized the company's commitment to expanding its expertise globally: "Sensys Gatso has for many years offered comprehensive Traffic Enforcement as a Service (TRaaS) operator services to its customers in the USA, spanning 12 states today. Sensys Gatso is now making this expertise and proprietary technologies available to new markets, including Africa, Asia-Pacific, and Latin America. We are proud to now, as planned, start issuing warning notices for our TRaaS offering in Ghana. This is truly a promising start to our traffic safety commitment to Ghana, where Sensys Gatso contributes to saving lives and reducing injuries on Ghana's roads. At the same time, through this project, we fulfill our promise to increase our recurring revenues."

This development marks a significant milestone for Sensys Gatso Group, not only in terms of expanding its footprint in Africa but also in demonstrating the effectiveness and scalability of its traffic safety solutions. Investors should note the potential for increased recurring revenue streams from this long-term contract, which aligns with Sensys Gatso's strategic goals.

Given the positive outlook and the strategic importance of this contract, investors might consider holding onto their Sensys Gatso shares to benefit from potential future growth and revenue stability.