TANZANIA LAUNCHES FIRST HOWO TRUCK ASSEMBLY PLANT IN EAST & CENTRAL AFRICA

May 10, 2024

𝘽𝙮 𝙏𝘽𝙄 𝙍𝙚𝙥𝙤𝙧𝙩𝙚𝙧
Dar es Salaam

The first assembly plant for the popular Chinese-made Howo trucks and tippers in east and central Africa was launched yesterday in Dar es Salaam.

President Samia Suluhu Hassan officiated the inauguration of the factory in Tanzania's commercial capital, which will assemble commercial vehicles for both local use and export.

The event marked a significant milestone in Tanzania's budding automotive industry.

The vehicles are assembled by China's heavy duty truck group Sinotruck, in partnership with Saturn Corporation, the official distributor for Howo trucks, tippers, tankers and spare parts in Tanzania.

Howo trucks have become a leading brand in the transport, construction and mining sectors in Tanzania and elsewhere in Africa.

The cost-effectiveness and durability of the brand new vehicles made in China has replaced second-hand European trucks that used to dominate the local market in previous years.

Today, many companies in Tanzania and in other African countries have mostly switched to Howo trucks in their fleets.

China's FAW Jiefang truck also launched its assembly plant in Tanzania in 2020.

Tanzania wants to challenge Kenya to become East Africa's automotive hub.

Here are key features of Howo's newly-launched assembly plant in Tanzania:

• The estimated investment of the assembly plant is worth $20 million
• The project has received some financing from Exim Bank (Tanzania) Limited
• This is a Complete Knock-Down (CKD) assembly, which means that the Howo trucks and tippers will be imported in parts and assembled in Tanzania
• The continuously moving assembly line will produce 30 Howo tractor trucks and 9 tippers per day
• The first trucks were rolled out of the assembly plant in March this year and 150 trucks were already assembled by yesterday. All the 150 trucks were snapped up by Tanzanian customers, with more orders on the waiting list
• An estimated 70% of the vehicles produced by the assembly plant will be sold locally in Tanzania, while 30% will be exported to neighbouring countries
• The assembly plant employs 250 permanent workers and may create about 1,800 indirect jobs

Tanzania Business Insight