Tanzania Opens First East and Central African Howo Truck Assembly Plant
Tanzanian President Samia Suluhu Hassan inaugurated a new tractor and lorry assembly plant in Dar es Salaam on Thursday. This development is expected to reduce import costs and create jobs for Tanzanians.
The Saturn Corporation Limited facility, located in the city’s Kigamboni area, has the capacity to assemble up to 30 tractors and nine lorries daily, with the potential to scale up production to meet customer needs. Since production began in March, more than 150 lorries have been assembled and about 2,000 direct and indirect jobs have been created.
President Hassan highlighted the plant as a sign of Tanzania’s improving business environment, attracting investors in the automotive and other industries. She emphasized the plant’s contribution to economic growth, job creation, and increased government revenue.
To address the need for sufficient raw materials, including steel, President Hassan directed the Industry and Trade ministry and the President’s Office (Investment and Planning) to streamline regulations and eliminate unnecessary bureaucracy to facilitate local sourcing of raw materials. She also called for finding investors for the Liganga iron ore and Mchuchuma coal projects.
“We need to expedite the selection of the most suitable investor so that raw material production can begin to supply factories like this one,” President Hassan said. “Let’s conclude this matter swiftly to ensure a ready supply of the required materials.”
The President further encouraged Tanzanians to seize the opportunities created by large foreign firms establishing manufacturing facilities in the country.
“Assembling just one lorry requires 2,400 individual parts, most of which are currently imported,” President Hassan said. “This reliance on imports hinders our economic development. Tanzanian businesses should take advantage of this opportunity.”
President Hassan expressed satisfaction that Tanzania will no longer need to import Howo lorries from China with the establishment of the assembly plant. Saturn Corporation Limited has also increased its Tanzanian workforce from 20 last year to 250 currently.
“We commend the company for this significant step, which demonstrates their ability to capitalize on the abundant investment opportunities in our country,” she stated.
Ashatu Kijaji, Minister for Industry and Trade, attributed the recent significant increase in investment in Tanzania’s industrial sector to the implementation of investor-friendly policies. As part of the effort to ensure a ready supply of raw materials for various industries, the government will begin compensating residents next month to make way for soda ash production in Engaruka, Monduli District. Soda ash is a component used in the manufacturing of various products, including glass.
Remtula Habib, CEO of Saturn Corporation Limited, revealed that the firm has already assembled and sold 150 vehicles.
“Our factory can currently assemble 30 tractors and nine tippers per day,” Habib said. “These vehicles are suitable for use in agriculture, mining, and construction. We are prepared to scale up production based on customer demand.”
Habib added that the company is committed to hiring local experts, with their numbers set to increase significantly in the coming years. He also stated that 70% of the vehicles produced at the plant will be sold locally, with the remaining 30% exported to neighboring countries.
