On 9th May 2024, the President of the United Republic of Tanzania, H.E. Samia Suluhu Hassan, inaugurated the Howo truck assembly and body-building plant of Saturn Corporation Limited in the Kigamboni district in Dar es Salaam.
The USD 20 million project was registered with Tanzania Investment Centre (TIC) in January 2022 as s joint venture between China’s Sinotruck and Saturn Corporation, Howo’s official distributor in Tanzania.
The plant can assemble up to 30 tractors and nine lorries daily and production can readily be scaled up to meet customer demand.
Since the factory commenced production in March this year, more than 150 lorries have already been assembled and about 2,000 direct and indirect jobs have been created.
Moreover, the establishment of this facility is anticipated to enhance cash flow, bolster government revenue, and facilitate technology transfer, further contributing to Tanzania’s industrial advancement and economic resilience.
Highlighting the strategic significance of the assembly plant, President Samia emphasized its role as a catalyst for industrial expansion and economic development.
She noted that the plant’s utilization of domestically sourced materials, including glass produced by local manufacturers, aligns with Tanzania’s objectives of promoting local content and reducing production costs for companies operating within the country.
“I have been told that assembling just one lorry requires 2,400 individual parts, most of which are currently being imported. This reliance on imports isn’t conducive to our economic development. This should be an opportunity for Tanzanians,” she commented.
To ensure the availability of adequate raw materials, including steel, President Samia directed the Ministry of Industry and Trade and the President’s Office for Investment and Planning to streamline regulations and eliminate unnecessary bureaucracy to facilitate local sourcing.
For his part, Saturn Corporation Limited CEO Remtula Habib stressed that the vehicles produced at the plant can be used in agriculture, mining, and construction and that 70% of them will be sold locally with the remainder being exported to neighboring countries.
During the inauguration, President Samia also underscored the government’s commitment to fostering a modern, integrated, inclusive, and competitive economy, underpinned by robust industrialization, economic services, and enabling infrastructure.
She emphasized the pivotal role of the industrial sector in enhancing production, generating employment opportunities, and advancing the nation’s socio-economic objectives, particularly in combating poverty and fostering inclusive growth.
President Samia mentioned the government’s initiative to reduce corporate tax rates from 30% to 10% for the initial five years, aimed at incentivizing increased investment in the industrial sector.
This reduction in the tax rates applies to the income of companies assembling motor vehicles, tractors, fishing boats, and outboard engines under the condition that they have a performance agreement with the national authority (government).
This strategic move is poised to stimulate further growth and competitiveness within Tanzania’s manufacturing landscape.
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