dar es salaam. Tanzanian company GF Automobiles, in collaboration with India’s Mahindra & Mahindra, plans to set up a local vehicle assembly facility in Tanzania within the next six months.
The partnership between GF Automobiles and Mahindra & Mahindra comes just a month after President Samia Suluhu Hassan visited India. In India, among others, a Mumbai-based Indian company (Mahindra & Mahindra) has agreed to set up a tractor assembly facility in Tanzania.
And yesterday, it was also revealed that during his visit, the President had asked Indian investors from various sectors to take advantage of the opportunities available in Tanzania.
The partnership between GF Automobiles and Mahindra & Mahindra will invest Sh10 billion in the establishment of a local vehicle assembly plant.
Samples of the vehicle, which will begin local assembly within six months, were displayed yesterday in Dar es Salaam during a short event witnessed by the Minister of State (Planning and Investment) in the Office of the President, Professor Kitila Mukumbo, and the Tanzania Investment Center. It was done. (TIC) Executive Director, Mr. Gilead Teri.
Imran Karmali, director of GF Group, which owns GF Automobiles, said the project is expected to start within six months and the investment amount will be jointly raised by both partners.
He said the assembly plant would bring down vehicle costs and allow Tanzanians to buy brand new cars.
“These cars will also be new (0 kilometers). I suggest that the government should attract these investments by blocking the import of used cars,” said GF Trucks and Equipment Company, which assembles heavy trucks. Karmali said.
He added that the company plans to assemble four-seater cars and pickup trucks, among other products from Mahindra & Mahindra and other brands he did not disclose. Assembly of passenger cars is also scheduled to begin in the near future.
Speaking at the event, Professor Mukumbo said he had met many investors during his visit to India, but Mahindra & Mahindra had promised to bring investment to Tanzania first.
“This investment means job creation, taxes for the government and a boost to Tanzania’s individual economy,” the minister said.
He said the investment was in line with the government’s goal to attract domestic auto investors, especially those who assemble electric vehicles, adding that the country is rich in resources such as lithium minerals that can be used to manufacture batteries. Stated. Therefore, production costs are reduced.
“The government will also review its car import policy. Currently, even 100-year-old cars are allowed to be imported, but they will be subject to higher taxes,” Professor Mukumbo said.
Mr Teri said the launch of the company reflected the increase in investment seen between July and September this year, with SAR2.51 trillion invested in various sectors, at least twice as much as last year. Ta.
He called on local investors to take advantage of the incentives provided by the government to participate in economic reforms to make it easier for them to invest and form partnerships.
“I encourage Tanzanians who own schools, land and buildings and are looking for a partner to co-invest in to identify that partner. When TIC goes abroad to encourage investment, I We want to see investors who are not 100% invested themselves. We want to see what happened with GF Automobiles and Mahindra happen to many Tanzanians. ”Teri said.