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Freight & Trading Weekly

SA-Kenya car deal rolls ahead

11 Oct 2019 - by Staff reporter
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Toyota SA has thrown its hat into Africa’s free-trade ring with the news that it has started exporting vehicle assembly kits for seven versions of the popular Hilux pick-up truck to Kenya – a bilateral venture that represents a local investment of R20 million. According Andrew Kirby, CEO of Toyota SA, the investment went into extending capacity at the company’s Prospecton plant in Durban and has resulted in the creation of 20 new jobs. The first assembled Hilux with parts from SA are expected to be sold in Kenya by month’s end - and although initial sales figures will most likely be slow, take-up by 2020 is expected to spike to around 1200 vehicle kits. It is furthermore hoped that the duty-free imports will make a significant impact on the Kenyan car market which, like many other African countries, is dominated by second-hand car imports from countries like Japan, Canada, and the US. Kirby’s peer at Volkswagen SA, Thomas Schaefer, said recently that second-hand car dumping robbed Africa of significant manufacturing potential that could boost the continent’s economy

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FTW 11 October 2019

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