IPP Group of Tanzania has signed a Memorandum of Understanding (MoU) with Youngsan Glonet Corporation of Korea for the local assembly of commercial and non-commercial vehicles.
IPP Automobile Limited indicates that assembly plant will be equipped with the latest machinery and tools to be able to assemble a range of branded vehicles with the highest quality standards, such as commercial and construction lorries, buses and sports utility vehicles (SUVs).
The plant is expected to assemble 1,000 vehicles per year and the first new vehicles branded Hyundai and Daewoo should be on sale in September 2019.
The vehicles are also intended to be exported to neighboring countries.
The MoU was signed on 20th November 2018 by Mr. Reginald Mengi, the executive chairman of IPP Group, and Mr. Thomas Choi of Youngsan.
Speaking to the press, Mengi explained that the project will help buyers to minimize exchange risks associated with the importation of the vehicles.
It will also stimulate the economy by direct employing at least 500 Tanzanians but indirect employment will be more than 1,000 people.
Currently, all vehicles in Tanzania are imported and are subject to heavy import duty.
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