The automotive industry in Tanzania is poised to receive a significant boost through a promising collaboration between GF Automobile and India’s Mahindra & Mahindra. This partnership will lead to the establishment of a local car assembly facility in Tanzania within the next six months, ushering in a host of new opportunities for the country.
The announcement of the partnership between GF Automobile and Mahindra & Mahindra came shortly after President Samia Suluhu Hassan’s visit to India, during which Mahindra & Mahindra committed to establishing a tractor assembly facility in Tanzania. This demonstrates a strong dedication from both parties to invest in the Tanzanian market and contribute to its economic growth.
The investment in the local car assembling factory is expected to total Sh10 billion, underscoring the substantial scale of this undertaking. The unveiling of car samples at a recent event in Dar es Salaam offered a glimpse of the exciting new vehicles that will soon be assembled locally. This unveiling was attended by prominent figures such as Prof Kitila Mkumbo, the Minister of State in the President’s Office (Planning and Investment), as well as Mr. Gilead Teri, the Executive Director of the Tanzania Investment Centre (TIC).
Mr. Imran Karmali, the director of GF Group, shared that the project is scheduled to commence within six months, with the investment being jointly sourced between the two partners. A key aspect of this initiative is the potential to make brand new vehicles more affordable to Tanzanians, representing a significant step towards improving access to transportation.
The assembling plant is anticipated to introduce cost efficiencies that will ultimately result in lower car prices for consumers. Mr. Karmali also expressed support for discouraging the importation of used cars in order to foster a greater demand for locally assembled vehicles. Additionally, the company intends to assemble various products from Mahindra & Mahindra and other brands, including four-seater cars, pickups, and even passenger vehicles in the near future.
Professor Mkumbo stressed the significance of this investment in terms of job creation, tax contributions, and the overall impact on individual Tanzanian economies. This initiative aligns with the government’s vision of attracting investors in the automotive sector, especially those involved in the assembly of electric vehicles. He highlighted the country’s abundant resources, such as lithium minerals, which can be utilized for electric batteries and reduce production costs.
Mr. Teri also underscored the increasing investment activity in Tanzania, with a notable S2.51 trillion being invested in various sectors between July and September this year. He called for local investors to take advantage of the incentives provided by the government to facilitate easier investment and partnerships, encouraging more Tanzanians to engage in economic reforms and co-investment opportunities.
The arrival of GF Automobile and Mahindra & Mahindra’s investment marks an exciting chapter for Tanzania’s automotive industry and the broader economic landscape. As the country continues to pave the way for further growth and development, this partnership serves as a testament to the potential and opportunities that await both local and international investors.
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