Dar es Salaam: The Tanzanian automotive industry is set for a significant boost as GF Automobile, a Tanzanian company, partners with India's Mahindra & Mahindra to establish a local car assembling facility within the next six months. This collaboration follows President Samia Suluhu Hassan's visit to India, where Mahindra & Mahindra agreed to establish a tractor assembly facility in Tanzania. The joint investment in the local car assembling factory is expected to amount to Sh10 billion.
During a recent event in Dar es Salaam attended by key dignitaries, including the Minister of State in the President's Office (Planning and Investment), Prof Kitila Mkumbo, and the Tanzania Investment Centre (TIC) Executive Director, Mr Gilead Teri, samples of cars slated for local assembly were exhibited. GF Group's director, Mr Imran Karmali, emphasized that the project would commence in six months, with funding being a joint effort between the two partners.
The assembling plant aims to reduce car costs, making brand new vehicles more accessible to Tanzanians. Mr Karmali suggested discouraging the importation of used cars to attract investments. The GF Group's subsidiary, GF Tracks and Equipment Company, currently specializes in assembling heavy trucks. The local assembly will initially focus on four-seater cars and pickups from Mahindra & Mahindra and other undisclosed brands, with plans to extend to passenger vehicles in the future.
Prof Mkumbo highlighted the job creation, increased tax revenue, and economic stimulation resulting from such investments, aligning with the government's goals. He emphasized the need to attract investors in electric vehicles, leveraging Tanzania's lithium minerals for battery production to reduce manufacturing costs. The government also plans to review its car importation policy, considering incentives to promote newer vehicle imports.
Mr Teri emphasized the surge in investment witnessed between July and September this year, amounting to S2.51 trillion, double that of the preceding year. He encouraged local investors to leverage government incentives for easier investment and partnerships, citing the success of GF Automobile and Mahindra & Mahindra as a model for Tanzanians seeking investment opportunities.