DAR ES SALAAM: TANZANIA has taken a significant step towards building a cleaner, more industrialised and technology-driven economy following the establishment of the country’s first electric vehicle (EV) manufacturing plant. The investment has been welcomed by the Government as a milestone that is expected to accelerate industrialisation, promote technology transfer, create employment opportunities, strengthen local manufacturing and support the country’s transition towards environmentally friendly transport solutions.
The new manufacturing facility, operating under Plug & Ride Tanzania, is a joint venture between India’s Mangal Eco Group and Tanzania’s Utegi Group. Beyond assembling electric vehicles, the company aims to establish a complete electric mobility ecosystem that supports production, maintenance, skills development and innovation within the country.
Speaking during the official launch of the factory yesterday, Deputy Minister for Transport David Kihenzile described the investment as a landmark achievement that opens a new chapter in Tanzania’s transport and industrial development.
He noted that the establishment of the plant demonstrates growing confidence in Tanzania as an investment destination while reflecting the country’s commitment to embracing modern technologies that support sustainable economic growth.
According to Mr Kihenzile, electric vehicles are no longer viewed as futuristic innovations reserved for developed economies. Instead, they have rapidly become part of the global transportation landscape as governments and businesses increasingly seek cleaner, more efficient and cost-effective mobility solutions.
He said Africa now has a unique opportunity to position itself as an active participant in the global transition towards electric mobility rather than remaining solely a consumer of imported technologies.
“The establishment of this factory is not simply about manufacturing electric vehicles. It is about creating an industrial base that supports innovation, develops local expertise, transfers advanced technology and generates employment opportunities for Tanzanians,” he said.
The Deputy Minister further observed that Plug & Ride Tanzania’s investment extends well beyond vehicle production. The company plans to manufacture electric motorcycles, passenger three-wheelers, commercial vehicles and other specialised electric transport solutions while simultaneously developing charging infrastructure, spare parts supply systems and after-sales maintenance services.
Such investments, he explained, are essential because a successful electric vehicle industry depends not only on producing vehicles but also on creating the supporting infrastructure that enables customers to use them conveniently and confidently.
The Government also believes the investment aligns with Tanzania’s broader industrialisation agenda by encouraging local manufacturing, reducing dependence on imported finished products and creating opportunities for domestic suppliers to participate in emerging value chains.
Mr Kihenzile further praised the company’s Chief Executive Officer, Otieno Igogo, describing him as an inspiring example of Tanzanian entrepreneurship.
He said Mr Igogo’s determination and persistence over many years demonstrate how long-term vision, patience and commitment can eventually translate ambitious ideas into tangible investments that benefit the nation.
“This achievement should encourage many young Tanzanians to pursue innovative ideas with confidence because successful businesses often begin with determination and perseverance,” he noted.
Permanent Secretary in the President’s Office (Planning and Investment), Dr Fred Msemwa, also commended the investment, saying Tanzania’s young population stands to benefit significantly from opportunities emerging within the electric mobility industry.
He encouraged young entrepreneurs not to view the sector solely as a manufacturing business but also as an expanding ecosystem offering opportunities in vehicle distribution, charging services, maintenance, spare parts supply, software support, logistics, financing and other complementary services.
According to Dr Msemwa, the Government remains committed to supporting investors and entrepreneurs introducing innovative solutions capable of addressing both urban and rural development challenges.
He added that encouraging investments in advanced manufacturing industries contributes to economic diversification while strengthening Tanzania’s competitiveness within regional and international markets.
The launch of Tanzania’s first electric vehicle manufacturing plant also reflects the strong economic partnership that continues to grow between Tanzania and India.
Through collaboration between local and international investors, Tanzania is gaining access to advanced manufacturing technologies while simultaneously building local technical capacity that can sustain industrial growth for years to come.
For Plug & Ride Tanzania, investing in people is considered just as important as investing in machinery.
Mr Igogo revealed that the company has already begun training Tanzanian technicians in electric vehicle technology to ensure the country develops the skilled workforce required to support the industry’s growth.
As part of this commitment, the company sponsored a young Tanzanian to study electric vehicle technology in India before returning home to train fellow technicians.
This approach allows knowledge acquired abroad to be transferred locally, creating a multiplier effect that strengthens national technical capacity while reducing reliance on foreign expertise over time.
Mr Igogo explained that the factory has been established with the vision of producing affordable electric transport solutions designed to meet Tanzania’s specific needs.
Among the products already developed are electric motorcycles, passenger three-wheelers, commercial vehicles, affordable electric ambulances intended for district councils and electric school transport vehicles capable of carrying approximately ten pupils at relatively low operating costs.
These products have the potential to improve mobility while lowering transport expenses for businesses, institutions and communities.
Electric vehicles generally require fewer moving parts than conventional petrol or diesel-powered vehicles, resulting in lower maintenance requirements and potentially reduced operating costs over their lifespan.
As more countries invest in renewable energy and cleaner transport systems, electric mobility is increasingly viewed as an important contributor to reducing greenhouse gas emissions and improving urban air quality.
For Tanzania, wider adoption of electric vehicles could gradually reduce dependence on imported petroleum products while supporting national efforts to improve environmental sustainability and energy efficiency.
“Our goal is to help Tanzania reduce fuel dependence while providing affordable, environmentally friendly transport solutions designed and built using Tanzanian expertise,” Mr Igogo said.
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The company believes local manufacturing will not only create sustainable employment but also stimulate the growth of supporting industries supplying components, engineering services and technical expertise.
As production expands, additional opportunities are expected to emerge for mechanics, electricians, software specialists, battery technicians, logistics providers, transport operators and entrepreneurs interested in participating throughout the electric mobility value chain.
The establishment of Tanzania’s first electric vehicle manufacturing plant therefore represents more than a single industrial investment.
It signals the country’s growing readiness to embrace emerging technologies, strengthen domestic manufacturing capacity, attract international investment and prepare its workforce for industries that are shaping the future of global transportation.
With continued collaboration between government, private investors, development partners and local entrepreneurs, Tanzania’s electric mobility journey could become an important driver of industrial growth, innovation, skills development and sustainable economic transformation in the years ahead.