MULTINATIONAL automotive giant, Toyota Tsusho Corporation, has expressed strong interest in expanding its operations in Zimbabwe, a move the Government hopes will lead to the establishment of a vehicle assembly plant in the country by the Japanese company.
The development is expected to revitalise the local automotive industry, create jobs and support technology transfer across key sectors such as transport, health and mining.
President Mnangagwa yesterday met a high-level delegation from Toyota Tsusho, where the company outlined its intentions to broaden its footprint in Zimbabwe.
The delegation was led by Mr Kohei Okada, executive officer and deputy chief strategy officer of the corporation.
The engagement followed the signing of a Memorandum of Understanding (MoU) on Tuesday between the Ministry of Industry and Commerce and Toyota Connect, a Toyota Tsusho subsidiary focused on innovation and technology.
In Zimbabwe, Toyota Tsusho already operates through its subsidiary Toyota Zimbabwe, the official distributor of new Toyota vehicles and Hino trucks, as well as genuine parts and services.
However, the company is now eyeing deeper investment, including semi-knockdown (SKD) manufacturing of buses, upgrading Toyota vehicles used in public transportation and supplying fully equipped ambulances.
Speaking after a closed-door meeting here, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government was eager to facilitate Toyota’s expansion into local vehicle assembly and other sectors.
“Toyota had a courtesy call on the President this afternoon and they are looking to expand their business activities in Zimbabwe,” Prof Ncube said.
“They are already in Zimbabwe; they have been there for quite a while and they are a top brand in terms of mobility.
“So they are in mobility, but also we are keen to make sure that they diversify into manufacturing locally.”
Prof Ncube said Toyota’s expansion in the local market will be greatly supported by the Government’s investor friendly policies.
“As you know, we have put in a policy now that if you bring in semi-knockdown kits and you assemble locally to create jobs, there is no duty on that,” he said.
“So we wanted to really make sure that
they take advantage of that. If we need to do more, then we do more.”
Prof Ncube said the company’s expansion could also help revitalise Zimbabwe’s public transport system, particularly by upgrading the aging fleet of Toyota vehicles currently used for mass transit.
“They are also keen to work with us to revamp our public sector transport,” he said. “Maybe offer new credit to upgrade all the Toyota cars that you see on the road that carry our citizens in terms of mass transportation.”
Additionally, Toyota Tsusho is looking to support the health sector through the provision of fully fitted ambulances and mobile medical units, including trucks equipped with X-ray machines.
“They are also very active in the health sector, providing ambulances,” Prof Ncube said. “We were able to engage them to understand what sort of facilities they offer. And the secretary will have to take on the ambulances that they offer.”
He noted that Toyota has already supplied equipment to institutions like Gweru Provincial Hospital.
“They have been working with the development arm of the Japanese government, supplying equipment. For instance, they have got mobile x-ray machines now on the back of a truck. And they have also been supplying equipment to various hospitals,” said Prof Ncube.
“Gweru Hospital, for example, has benefitted from some equipment that they have supplied working with the Japanese development arm. We want them to expand, we want to work with them, offer them the right incentives for them to do more and support our citizens.”
In addition to transport and health, Toyota is also exploring opportunities in the mining sector, particularly along the electric vehicle value chain.
Prof Ncube said this could involve investments in mineral beneficiation and battery technology, areas that could bring substantial benefits in terms of skills development, job creation and technology transfer.
“They are also keen to get into the entire value chain in the mineral sector,” he said. “As you know, there is this new development with electric vehicles and battery-operated cars.
“So that is the value chain that they are showing interest in, just like their competitors from other countries.”
Zimbabwe’s automotive sector has long struggled with capital constraints and outdated technology, leaving companies such as AVM, Willowvale Motor Industries, Deven Engineering, Quest Motors and others operating below capacity.
The potential entry of Toyota Tsusho into local vehicle manufacturing is expected to reinvigorate the industry and drive competition.
Meanwhile, President Mnangagwa also held a separate meeting with Mie Prefecture Governor Ichimi Katsuyuki.
Mie Prefecture, part of the Kansai region and a renowned tourist destination, has trade links with Zimbabwe through the import of petalite — a mineral used in traditional Japanese pottery.
In an interview, Governor Katsuyuki said: “In the conversation we had with the President we spoke about petalite that is exported from Zimbabwe to Japan.
“We use the petalite from Zimbabwe to make traditional pots here in Japan. President Mnangagwa said he will continue working with us in the export of petalite from Zimbabwe.”
Credit- Herald
