The famous motor company, Toyota Japan has committed over US$10 million to carry out an expansion project in Zambia that will include opening up plants in Solwezi and Livingstone in Northwestern and Southern Provinces respectively.
Toyata Japan plans to set up plants in Zambia for value addition, converting copper into cables that will be used for making motor vehicle parts and assembling full Toyota vehicles.
Speaking to ZANIS at the just ended TICAD 1V, in Yokohama, Japan, Commerce Trade and Industry Minister, Felix Mutati disclosed in an interview with ZANIS that the US $ 10 million will go towards renovating the Toyota head office in Lusaka and opening up plants in Solwezi and Livingstone.
“ Toyota is expected to come and conduct some feasibility studies in the next one or two months, but in case they delay, Zambia will continue to prod and push until we see major companies from Japan coming to invest in Zambia,” noted Mr Mutati.
Mr Mutati said it will be easy to market Zambia to Japan and other investors worldwide once Toyota sets up plants in Zambia.
Mr Mutati explained that Zambia will soon reach a Memorandum of Understanding(MoU) with a Japanese company called Jethro to facilitate investment flow from Japan into Zambia.
Mr Mutati added that Jethro, which operates like Zambia Development Agency, (ZDA)will assist in the promotion of investment from the Japanese business community, provide technical assistance to ZDA and also provide technical assistance to producers and exporters so that they penetrate the Japanese market.
The Minister further said apart from Toyota Japan, Zambian government officials also met with Mitsubishi, who have promised to go beyond mining into value addition.
Another Japanese company that has plans of investing in Zambia is the Japan Oil, Gas and Metals National Corporation, JOGMEC, which hopes to assist the Zambian government by providing geological data in Oil and gas explorations for Japanese investors to come into Zambia.
Mr Mutati also disclosed that the Zambian government together with Japan International Cooperation Agency (JICA) is putting up a multi facility zone with the technical assistance from Malaysia in order to attract Japanese investors and other Asian countries.
He said the Zones will create an industrial base for value addition industry and hoped that the feasibility study will be ready by April next year.
During the TICAD 1V, Zambia’s Ministers of Commerce, Trade and Industry, Felix Mutati, Finance Minister Ngandu Magande, Foreign Affairs Minister Kabinga Pande and Agriculture and Cooperatives Minister Sara Sayifwanda attended an investment forum where over 100 Japanese companies attended.
Among the issues discussed at the forum included the investment climate and incentives offered in Zambia, and the Japanese perception of risks in Zambia and Africa as a whole.