TOYOTA EXPLORES INVESTMENT IN ENERGY AND MANUFACTURING IN TANZANIA
Representatives from Toyota Tsusho
Corporation (TYO:8015), the trading arm of the Japanese conglomerate Toyota
Group, have recently visited Tanzania to explore investment opportunities in
different key economic sectors with the aim of diversifying its automobile
operations and tap the country’s growing economy. According to a local media,
the sectors in which Toyota is interested are energy – wind and geothermal power
generation – and manufacturing – textile and meat processing industries. This
is line with the recently launched Tanzania Investment Centre’s (TIC) campaign
to promote value addition and processing industries which seeks to reduce
exports of raw materials and raise the sale of processed and manufactured goods
in international markets to raise farmers and small and medium-sized
enterprises (SMEs) income. The government of Tanzania is currently aiming at
raising further foreign direct investments (FDIs) that generate employment for
locals and profit for investors, therefore, Toyota counts with all government’s
support necessary to help to improve the economy and trade, explained
Tanzania’s Trade and Investment Permanent Secretary, Mr. Adolf Mkenda. Public
servants are in charge of encouraging investors to undertake businesses in the
country and to closely work with them in public private partnerships (PPP) to
benefit the private sector, strengthen the economy and create citizens’
welfare, Mr. Mkenda added. The FDI inflow to these industries is seen as a key
factor in job creation, rising exports and foreign exchange earnings, reason
why Toyota’s interest is crucial to raise FDI outflows from Japan that have not
grown at quick rates in recent years recording only USD 17.42 million in 5
projects between 2011 and 2015 according to the TIC. Total Japanese FDI
outflows was USD 114 billion in 2014 down from USD 136 billion in 2013 with USA
as the most important destination accounting for 26.2% of the total flows and
with Liberia as the most important African destination accounting for 0.1% of
the total.
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