Africa is rising fast in the business plan of global leaders in automobile manufacture. Faced with stagnant demand in developed economies, these companies are turning to Africa to tap into its growing demand for new cars.
Leading automakers including Toyota, Volkswagen, BMW, and Nissan are enhancing their presence in Africa by setting up manufacturing facilities. Volkswagon and Nissan have set up operations in Nigeria, Kenya, and Ghana or have confirmed plans to do so. Honda and Peugeot have launched assembly plants in Nigeria. Peugeot has set up assembly plants in Kenya.
The latest announcement came from Japan’s car company Toyota which has announced its plan to set up a car assembly plant in Côte d’Ivoire. An agreement to this effect was signed by the company on Thursday, August 29 in Yokohama, Japan, with the Ivorian government. The deal signed by the Ivorian transport minister, Amadou Koné, and the CEO of Toyota, Ichiro Kashitani, took place on the sidelines of the 7th edition of the Tokyo International Conference on African Development held in Yokohama this week. The construction of the plant is expected to begin by the end of 2019.The west African country will become Toyota’s fourth investment destination in Africa, after South Africa, Egypt and Kenya. Toyota already produces cars in South Africa, which has a well-developed auto industry. In order to increase its footprints in Africa, Toyota Tsusho acquired French automobile retailer CFAO, which operates in 35 countries in Africa, in 2016.
The Ivorian economy has recorded healthy growth and is expected to grow by 7.5% 2019 against 7.4 percent last year, according to the International Monetary Fund .The economy is also expected to maintain a strong medium-term growth.
