What new vehicle assembly plant means for Tanzania

Dar es Salaam. President Samia Suluhu Hassan on Thursday inaugurated a tractor and lorry assembly plant in Dar es Salaam in a development that will cut importation costs and create jobs for Tanzanians.

Located in the city’s Kigamboni area, the Saturn Corporation Limited facility can assemble up to 30 tractors and nine lorries daily and production can readily be scaled up to meet customer demand.

More than 150 lorries have been assembled and about 2,000 direct and indirect jobs created since the factory commenced production in March.

President Hassan said the plant was proof that Tanzania’s business environment is improving swiftly and the country is now attracting investors in the automotive and other industries.

This contributes to economic growth, increases employment opportunities and boosts government revenue, she added.

To ensure the availability of adequate raw materials, including steel, the Head of State directed the Industry and Trade ministry and the President’s Office (Investment and Planning) to streamline regulations and eliminate unnecessary bureaucracy to facilitate the sourcing of raw materials locally. She also directed the two dockets to find an investor for the Liganga iron ore and Mchuchuma coal projects.

“You need to expedite the selection of the most suitable investor so that the production of raw materials can commence for factories such as this one. Let’s swiftly conclude this matter to ensure that the required raw materials are readily available,” President Hassan said.

She added that Tanzanians should also grab opportunities created when big foreign firms set up manufacturing facilities in 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,” President Hassan said.

The President was impressed by the fact that the importation from China of Howo lorries will cease following the setting up of an assembly plant in Tanzania. Saturn Corporation Limited has also engaged 250 Tanzanian employees, up from 20 last year.

 “We commend the company for this significant move which demonstrates that it has been able to capitalise on investment opportunities that now abound in our country.”

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Industry and Trade Ashatu Kijaji said investment in Tanzania’s industrial sector has increased significantly in recent years due to the implementation of favourable policies that attract investors.

As part of efforts to make raw materials readily available for diverse industries, the government will next month begin compensating residents who will move out to pave the way for the production of soda ash in Engaruka, Monduli District. Soda ash is used in the manufacture of various products, including glass.

For his part, Saturn Corporation Limited CEO Remtula Habib said the firm has so far assembled 150 vehicles, which have all been bought.

“The factory is currently capable of assembling 30 tractors and nine tippers per day. The vehicles can be used in agriculture, mining and construction. We are prepared to scale up production according to customer demand,” he said.

Mr Habib added that the company is committed to hiring local experts, whose number in the firm will increase significantly in the coming years.

He said 70 percent of vehicles produced at the plant will be sold locally with the remainder being exported to neighbouring countries.