BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Section 6 Events in the Africa Region1 Launch of the Africa DivisionToyota Tsusho has been developing business inAfrica centered on automobile exports and sales sincethe 1960s. In 2000, Toyota Tsusho established ToyotaTsusho Africa (Pty) Ltd (TTAF) in South Africa, and in2001 Toyota Tsusho acquired five Toyota distributorsin southeast Africa from British company Lonrho.Then, in 2012 Toyota Tsusho bought out French tradingcompany CFAO and took over its substantial Africaoperations. This continued business expansion and ledto the establishment of Toyota Tsusho’s dedicated AfricaDivision, in April 2017.Based on the philosophy of“With Africa, For Africa,”the Africa Division, using CFAO as its implementingbody, conducts business throughout Africa in automotive,healthcare & chemicals, consumer goods & services,and Technology & energy. The division’s focus is onbusinesses with long-term potential.2 Business Development in KenyaWins Contract to Build Kenya’s Largest GeothermalPower PlantIn November 2011, Toyota Tsusho, together withToshiba Corp. and Korea’s Hyundai Engineering &Construction, won the construction contract for theOlkaria Geothermal Power Station in Kenya. This verylarge project generates 280 MW of electric power, thelargest capacity in Africa and equivalent to about 20%of Kenya’s total power generation. It also proved to be apowerful driver of Toyota Tsusho’s business developmentin Africa in nonautomotive fields. The OlkariaGeothermal Power Station was completed in February2015, and Kenya’s president Uhuru Kenyatta was invitedto attend the opening ceremony.Expanding of the Infrastructure Business in KenyaIn December 2013, Toyota Tsusho and MitsuiEngineering & Shipbuilding Co., Ltd. (currently theMitsui E&S Group), won a contract from the KenyaPorts Authority to supply and install six gantry cranesas part of a port development project in Mombasa, thelargest commercial port in East Africa. This was ToyotaTsusho’s first port-related project in the region, and itwas completed in December 2015. As one of the reliablequality infrastructure construction projects that theJapanese government had expressed support for at theTokyo International Conference on African Development(TICAD), the project was funded in Japanese yen byODA loans provided through the Japan InternationalCooperation Agency (JICA).Start of Fertilizer Production and SalesIn September 2014, Toyota Tsusho concluded aMOU for the domestic production of fertilizer with theKenyan government and in 2015 established ToyotaTsusho Fertilizer Africa Ltd. (TTFA). In August2016, Kenya’s first fertilizer factory was completedin Eldoret in the western region of the country. TTFAdevelops fertilizer suitable for land and crops inKenya in collaboration with local Moi University andinternational fertilizer organizations IFDC and AFAP.The fertilizer is produced and sold under the BarakaFertilizer brand. In collaboration with JICA, TTFA alsodevelops, manufactures, and sells fertilizers, includingblended fertilizers, for paddy rice and for wheat. Theseefforts contribute to improving agricultural productivity,particularly in the area of the country covered by theMwea Irrigation Scheme.Development of the Logistics BusinessIn October 2016, Toyota Tsusho announced theestablishment of Bollore NYK Auto Logistics Ltd.,Kenya’s first vehicle logistics company. The newcompany, a joint venture Toyota Tsusho, BolloreContainer cranes in MombasaFrom left: President & CEO Jun Karube, of Toyota Tsusho, and H.E. Mr. Uhuru Kenyattaas President of the Republic of Kenya172