Kenyan-based vehicle dealer and hospitality provider Simba Corporation could expand to Ethiopia if the government opens up its market to foreign investors.
Simba Corp’s chief executive Dinesh Kotecha said they have been closely assessing the current developments in Ethiopia where the new Prime Minister Abiy Ahmed is spearheading political and economic liberalisation in the country.
Kotecha said:
“We are very open to whatever opportunities come up out there. We are willing to look at any possibility, it could be greenfield, it could be [a] partnership with an established business in Ethiopia. All we wait to see is regulations to enable business environment such as liberalization, to some extent, of the foreign currency so it doesn’t restrict you in terms of going into business.”
Other Kenyan firms from the telecommunication to the banking sectors are also waiting to take advantage of the huge Ethiopian market if it is opened up to foreign investors.
Simba Corporation
Simba Corp began as a second-hand car dealership and has been around for 50 years. The corporation sells 17 per cent of new vehicles in Kenya per year through its Mitsubishi, Fuso, Mahindra, Renault, and BMW franchises.
The firm also owns a Kempinski managed five-star hotel in Nairobi, a tourist camp in the Maasai Mara game reserve, and the Acacia hotel brand.
Kotecha revealed that the group has three independent directors on its board and might list its shares in the next five years. He also said its vehicle assembly subsidiary AVA could increase its staff two-fold from 300 if the Kenyan government goes through with its plans to promote local manufacturing.
President Uhuru’s administration is focusing on manufacturing through the Big Four agenda with the aim of increasing employment.
“The government is looking into the regulations that would favour local assembly of motor vehicles […] With [a] change in regulations, we expect motor vehicle assembly to increase,” Kotecha stated adding that a new rule could be implemented requiring vehicle assembly plants to source for more parts locally.
