Toy­ota Tsusho tar­gets 30% of rev­enue from Africa

The Gulf Today - Business - - INTERNATIONAL -

NAIROBI: Toy­ota Tsusho Cor­po­ra­tion’s African head wants the con­ti­nent to de­liver 30 per cent of the Ja­panese con­glom­er­ate’s to­tal rev­enue over the next 20 years, up from 10 per cent now.

The trad­ing arm of Ja­pan’s Toy­ota Group bought French dis­tri­bu­tion com­pany CFAO in 2012, giv­ing it ac­cess to busi­nesses rang­ing from re­tail to health­care across Africa.

These busi­nesses have now been in­te­grated with Toy­ota Tshusho’s own op­er­a­tions, which were mainly in­volved with ve­hi­cle sales, and em­ploy more than 15,000 peo­ple.

“In the com­ing 20 years, we should in­crease from 10 to 30 per cent,” Richard Bielle, CFAO’S group chair­man and CEO, told Reuters, with ref­er­ence to Africa’s con­tri­bu­tion to Toy­ota Tsusho’s to­tal annual rev­enue of $60 bil­lion.

That goal was based on fore­casts which show Africa’s pop­u­la­tion of 1 bil­lion would ac­count for a third of the world’s pop­u­la­tion by 2050, from about 17 per cent now.

The Africa di­vi­sion is in­vest­ing 100-150 mil­lion eu­ros each year as it seeks to boost its food re­tail, pro­duc­tion and con­sumer goods sales busi­nesses, Bielle said.

CFAO’S au­to­mo­tive busi­ness, which in­cludes dis­tri­bu­tion of Toy­ota and Mercedes Benz cars in Kenya, con­trib­utes 60 per cent of rev­enue while health­care, in­clud­ing phar­ma­ceu­ti­cal dis­tri­bu­tion, make up a third.

The rest comes from its tech­nol­ogy and en­ergy, which in­cludes re­new­able en­ergy gen­er­a­tion plants.

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