Just one month has passed since President Samia Suluhu Hassan's visit to India, during which the Mumbai-based Indian company Mahindra & Mahindra decided to establish a tractor assembly plant in Tanzania, among other things. GF Automobile and Mahindra & Mahindra have now partnered.

 

It was discovered that the President had also urged Indian investors from a range of industries to take advantage of Tanzania's opportunities while on the trip.

 

The local car assembly factory will be established with an investment of Sh10 billion by GF Automobile and Mahindra & Mahindra.

 

The project is scheduled to begin in six months, according to Mr. Imran Karmali, director of GF Group, the company that owns GF Automobile. The funding for the project will be jointly sourced by the two partners.

 

According to him, Tanzanians will be able to afford brand-new cars thanks to the assembly plant's reduction in auto costs.

 

In addition, he mentioned that they will assemble pickup trucks and cars with four seats, in addition to other items from Mahindra & Mahindra and other brands he did not disclose. In the near future, passenger car assembly would also begin.

 

Professor Mkumbo stated that although they met with a number of investors during their trip to India, Mahindra & Mahindra made a commitment to be the first to bring its investments to Tanzania.

 

The minister declared, "This investment means creating jobs, paying taxes to the government, and enhancing individual Tanzanian economies."

 

According to him, the investment aligns with the government's objectives of luring automobile investors to the nation, particularly those who assemble electric vehicles. He cited the abundance of resources in the nation, including lithium minerals, which can be used to make electric batteries and thereby lower production costs.

 

"The government's importation policy will also be reviewed. Even if an automobile has been used for a century, you can still import it, though the taxes will be higher, according to Prof. Mkumbo.

 

In order to facilitate investment and foster partnerships, he urged local investors to take part in economic reforms by utilizing government-provided incentives.