Toyota Tsusho’s growth strategy, driven by a thorough on-the-ground approach and backed by a century of pioneering new horizons with Africa

“Broad-based” expansion across Africa in four core sectors

Toyota Tsusho has been operating in Africa for more than a century and is currently developing its business across the continent, focusing on four major domains: Mobility, Green Infra, Healthcare, and Consumer. A turning point was the decision to take an equity stake in CFAO, a French trading company specializing in Africa, recalls HIRATA Tatsuya, COO for Africa Division of Toyota Tsusho and Deputy CEO of CFAO.

Up until then, Toyota Tsusho’s operations centered on automobile sales in East and Southern Africa. The company took a stake in CFAO in 2012, making it a wholly owned subsidiary in 2016, leading to its expansion into West Africa. Through projects such as the construction of Senegal’s first seawater desalination plant, the company broadened its operations both geographically and across business sectors.

Given Africa’s unpredictable nature, HIRATA stresses the importance of a “broad-based” structure with operations across the continent that can absorb risks such as regime change in one country. Another key factor is attracting the middle class in Africa, where population growth is expected, with products and services tailored to local needs. Building networks with local companies that understand market trends is crucial. In the consumer goods and services domain, the company is developing shopping malls, closely monitoring the needs of price-sensitive customers.

Based in France, HIRATA travels to Africa almost every month to see the work on the ground and products with his own eyes. “We can't understand what is actually going on by just gathering information in Paris or Tokyo. It's important to get a firsthand feel.” A profound insight gained through over ten years of involvement in business in Africa.

TICAD is a milestone, ushering in a golden opportunity for Japan

In the infrastructure sector, Toyota Tsusho is strengthening its development of renewable energy, which is also supported by JBIC. The company’s strategy is to steadily expand business opportunities in Africa, which is set for future economic growth.

HIRATA sees TICAD as “an important opportunity to accelerate business.” He is shaping projects in collaboration with local entities in preparation for the conference, which is providing big momentum for business. “Factors such as the growing complexity of international affairs and the drastic reduction of support from the U.S. are leading to uncertainty about the future of support for African development. Against this backdrop, Africa’s expectations toward Japan are rising, providing us with an opportune moment,” he says, eyes firmly on the future.

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