Commercial and non-commercial vehicles buyers in Tanzania will no longer be required to use foreign currencies after IPP Automobile Ltd announced a plan to set up an assembly plant in Dar es Salaam yesterday.
The first new vehicles branded Hyundai and Daewoo are expected to be on sale in September, next year. The plant will be assembling 1,000 vehicles per year.
This was disclosed after IPP Automobile Ltd signed an agreement with a technical representative from Korean Youngsan Glonet Corporation, who represented Hyundai and Zyle Daewoo companies.
The $10 million (Sh23 billion) deal was signed by Reginald Mengi, the executive chairman of IPP Group, which also owns IPP Automobile Limited and Youngsan.
The car assembly plant will produce commercial and construction lorries, buses and sports utility vehicles (SUVs).
Speaking to reporters in Dar es Salaam yesterday, Dr Mengi said the project will stimulate the economy and help buyers to minimise exchange risks associated with importation of the vehicles.
This is the second time for IPP Group subsidiaries to sign an international agreement. Last month, the company signed a contract with the Dubai based Touchmate to start producing electronic gadgets, which include computers, mobile phones, Ipads, headphones and home appliances. The company said it would invest $5 million (Sh12 billion) for the manufacturing plant, which will employ at least 2,000 people.
Dr Mengi, one of the top billionaires in the country, said this will be an important step for Tanzania because a lot of young people will be employed at the plant.
“Through this project, we expect to provide direct employment for at least 500 Tanzanians while indirect employment opportunities will certainly be more than 1,000 people,” said Dr Mengi.
According to him, third party industries and companies will also benefit as the factory expects to procure raw materials from local sources.
The assembled cars will also be exported to neighbouring countries like Malawi and Zambia.
Dr Mengi featured in Forbes ranking of Africa’s richest people with a fortune of more than $400 million in 2015 and he is currently running the IPP Group, a Tanzanian conglomerate that bottles Coca-Cola and manufactures the Kilimanjaro water brand.
The first new vehicles branded Hyundai and Daewoo are expected to be on sale in September, next year. The plant will be assembling 1,000 vehicles per year.
This was disclosed after IPP Automobile Ltd signed an agreement with a technical representative from Korean Youngsan Glonet Corporation, who represented Hyundai and Zyle Daewoo companies.
The $10 million (Sh23 billion) deal was signed by Reginald Mengi, the executive chairman of IPP Group, which also owns IPP Automobile Limited and Youngsan.
The car assembly plant will produce commercial and construction lorries, buses and sports utility vehicles (SUVs).
Speaking to reporters in Dar es Salaam yesterday, Dr Mengi said the project will stimulate the economy and help buyers to minimise exchange risks associated with importation of the vehicles.
This is the second time for IPP Group subsidiaries to sign an international agreement. Last month, the company signed a contract with the Dubai based Touchmate to start producing electronic gadgets, which include computers, mobile phones, Ipads, headphones and home appliances. The company said it would invest $5 million (Sh12 billion) for the manufacturing plant, which will employ at least 2,000 people.
Dr Mengi, one of the top billionaires in the country, said this will be an important step for Tanzania because a lot of young people will be employed at the plant.
“Through this project, we expect to provide direct employment for at least 500 Tanzanians while indirect employment opportunities will certainly be more than 1,000 people,” said Dr Mengi.
According to him, third party industries and companies will also benefit as the factory expects to procure raw materials from local sources.
The assembled cars will also be exported to neighbouring countries like Malawi and Zambia.
Dr Mengi featured in Forbes ranking of Africa’s richest people with a fortune of more than $400 million in 2015 and he is currently running the IPP Group, a Tanzanian conglomerate that bottles Coca-Cola and manufactures the Kilimanjaro water brand.
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