Vehicle import policy review paves way for assembly plants
The policy that enabled Tanzanians to import affordable used vehicles is currently being reviewed as the government seeks to attract car makers, to open assembly plants in the country.
The Minister for Industries, Trade and Investment, Charles Mwijage, told the ‘Daily News’ yesterday that his office was currently reviewing vehicle import policy so as to create good environment for the automakers interested to invest in vehicle assembly plants.
“The review of the policy aims at creating good and friendly environment for companies that are interested to invest in vehicle assembling businesses in the country. A suitable policy is likely to enable Tanzanians to purchase new vehicles at affordable prices within the country,” he said.
According to statistics released by Tanzania Automobile Association (TMA) in 2014, every month, Tanzanians import an average of 4,500 light second-hand vehicles—those with carrying capacity of below 12 passengers.
Some big companies across the globe including the Germany car manufacturer ‘Volkswagen’ have already shown interest to invest in vehicle assembly plant in the country.
The Min ister said the intentions to establish vehicle assembling plant in Tanzania were warmly welcome, especially at this time when the government is focused on building an industrial driven economy.
“As the Minister for Trade, Industries and Investment, I am very grateful to this brilliant idea; we need industries to create employment and get income,” said Minister Mwijage.
He added that the plant will create employment opportunities to Tanzanians, the government will increase income from the business by getting tax from both the plant and its employees. Mr Mwijage said the government is reviewing the policy so as to attract investors in the area.
In 2014, the Indian car maker, Mahindra & Mahindra Limited said they were planning to establish a vehicle assembly plant in the country. So far, Mahindra has entered into a contract with Jolly Enterprises Limited as its sole authorised distributor of Mahindra products in Tanzania.
Last week, Volkswagen released a report saying it has established Volkswagen Sub-Saharan Africa as a regional operation, in a move aimed at developing and strengthening the African market.
Indonesia The new region joins the existing regions of North America, South America and China, and forms part of Volkswagen’s strategy to position itself in selected focus areas.
At least four African countries including Tanzania have been identified as most potential for growing their new-vehicle markets. Other countries include Kenya, Rwanda and Ethiopia