Zimbabwe In Advanced Talks With Toyota For A Local Car Assembly Plant

Zimbabwe is now in advanced talks with the Automotive giant Toyota for a local car assembly plant.

Japanese automotive leader Toyota Tsusho Corporation has shown strong commitment to expanding its African operations through potential vehicle assembly investments in Zimbabwe.

Zimbabwe In Talks With Toyota For Car Assembly Plant

President Emmerson Mnangagwa recently convened strategic talks with Toyota Tsusho executives in Japan, including Executive Officer Kohei Okada. This high-profile meeting followed the signing of a technology partnership agreement between Zimbabwe’s Ministry of Industry and Toyota Connect, the corporation’s innovation division.

Currently operating in Zimbabwe through its Toyota Zimbabwe subsidiary – the authorised distributor of Toyota vehicles and Hino trucks – the multinational now eyes more substantial investments, including Semi-knockdown (SKD) bus production facilities, Modernisation of public transport vehicle fleets and Specialised ambulance manufacturing.

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Government Offers Incentives for Local Manufacturing

Finance Minister Mthuli Ncube revealed Zimbabwe’s readiness to support Toyota’s expansion through favourable policies, including duty-free importation of vehicle assembly kits.

Zimbabwe in talks for a local Toyota assembly plant-Image Source@herald

“Our new industrial policy creates ideal conditions for automotive investors,” Ncube stated. “We’re prepared to offer additional incentives to establish local manufacturing operations.”

The proposed investment promises transformative effects across Zimbabwe’s economy:

Transport Sector Modernization

Toyota’s potential entry could revolutionize Zimbabwe’s public transportation system by introducing modern vehicles and financing solutions for fleet upgrades.

Healthcare Equipment Manufacturing

The corporation has demonstrated capability in producing mobile medical units, including ambulance conversions and truck-mounted X-ray systems – technology already implemented at Gweru Provincial Hospital through Japanese development programs.

Mining Value Chain Integration

Discussions include potential collaboration in electric vehicle battery production, leveraging Zimbabwe’s mineral resources for advanced manufacturing.

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Revitalising Zimbabwe’s Automotive Industry

This development comes as Zimbabwe seeks to rejuvenate its struggling automotive sector, where domestic manufacturers currently operate below capacity. Toyota’s potential establishment of assembly operations could stimulate competition, facilitate technology transfer, and lead to job creation in the industry.