Japanese automotive manufacturer Toyota has finalized plans to establish vehicle assembly plants in both Ghana and Ivory Coast, marking a significant expansion of its operations in West Africa. Memorandums of Understanding (MoUs) have been formally signed with the governments of both countries, solidifying these strategic investments.

Ichiro Kashitani, CEO of Toyota Tsusho Corporation, revealed during the signing ceremony that the assembly plant in Ghana is projected to commence operations from August 2020. Kashitani expressed his satisfaction with the agreement, stating, "I am very happy that we have reached the consensus and principal agreement to start the Toyota and Suzuki assembly plants. We are planning to kick-off the project immediately, and, hopefully, we will have the first car made in Ghana this time (August) next year." Further details on Ghana's production plans were provided by Imai Toshimitsu, Toyota's Chief Operations Officer in charge of the Africa division, who confirmed that the Toyota Hilux pickup, already a popular vehicle in Ghana, would be among the products assembled. Additionally, the plant is slated to introduce small passenger cars, encompassing two Suzuki brands.

Similarly, the Ivorian government issued a statement confirming that Prime Minister Amadou Gon Coulibaly and Ichiro Kashitani had signed an agreement for the construction of a vehicle assembly plant in Ivory Coast. While the statement did not specify the types of vehicles to be assembled, it indicated that the process for building the assembly plant would initiate before the end of the current year.

Kashitani characterized Toyota's decision to open additional assembly plants in Africa, building on the success of Toyota South Africa, as a profound and lasting commitment, likening it to "a marriage that will last for life." Ghanaian President Nana Akufo-Addo enthusiastically backed Toyota's initiatives, assuring the company of his government's full support and necessary assistance to ensure the investment's success. President Akufo-Addo also articulated that this agreement is integral to Ghana's broader vision of transforming into an automotive hub for both the West African region and the wider African market, especially with the operationalization of the African Continental Free Trade Area (AfCFTA).

The discussion also extended to Nigeria, recognized as Africa's largest market with a GDP of approximately $440 billion and a population of around 200 million. Despite its immense market potential, Nigeria faces considerable challenges, including power shortages, inadequate road networks, and stringent regulations that have historically hindered foreign direct investment. The country's ranking of 146th among 190 nations in the World Bank's recent Ease of Doing Business report highlights these difficulties, potentially deterring prospective investors. Nevertheless, during the Seventh Tokyo International Conference on African Development (TICAD 7), President Buhari urged the Toyota group to consider establishing a car assembly plant in Nigeria. He emphasized Nigeria's capacity to absorb investment for positive returns and outlined ongoing governmental efforts to improve the Ease of Doing Business and eliminate bureaucratic obstacles. In response, Ichiro Kashitani expressed Toyota's strong interest in having a presence in Nigeria, extending beyond automobiles to include sectors such as energy and healthcare, notably proposing an advanced medical diagnostics centre.

For the immediate term, the newly planned assembly plants in Ghana and Ivory Coast are strategically positioned to facilitate the local assembly of Toyota and Suzuki products, thereby serving the burgeoning West African market, which includes Nigeria. Nigeria's full integration into Toyota's manufacturing strategy in the region is likely contingent on continued economic stabilization and further enhancements to its business environment.