Toyota Tsusho, the Africa-focused trading arm of Japanese carmaker Toyota, is looking to build two car factories in Africa and is considering setting up one of them here, according to a General Authority for Investment and Free Zones (GAFI) statement yesterday. The company wants each factory to produce some 100k vehicles annually, Toyota Tsusho’s Jun Karube is quoted as telling GAFI CEO Hossam Heiba, without giving more details. Representatives from Toyota Egypt declined to comment on the plans when we reached out yesterday.

We have what it takes: Toyota is in part considering putting one of the factories here because we have industries that feed into the automotive industry — including Japanese firm Sumitomo’s Tenth of Ramadan parts factory, set to be the largest of its kind in the world.

Toyota Tsusho’s mobility arm (as it now calls its automobile division) is an assembler in some 50 countries, producing passenger cars as well as commercial and industrial vehicles, its website notes. Toyota Tsusho advertises deep ties to Africa and also has a focus on infrastructure, including contracts in Egypt. Go deeper: Its website goes fairly deep into its plans for mobility and Africa.

Localizing the automotive industry is a priority for policymakers, who have finally produced a range of industry incentives through its soon-to-launch Automotive Industry Development Program (AIDP). Incentives under AIDP aim to boost local assembly and component manufacturing, up the sector’s competitiveness to become a regional manufacturing hub, and bolster export volumes. The strategy still needs to be shipped to the House of Representatives for approval and is expected to begin being implemented in 2H 2023, Trade and Industry Ministry sources told usin March.

Other auto projects in play: Stellantis, Nissan and Al Mansour Automotive could invest a total of USD 145 mn in local auto assembly over the next three years. Abou Ghaly, GM, and El Nasr Auto are also among those looking to produce electric vehicles locally.

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