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.