Over the next 20 years, Toyota Tsusho Corporation’s African head wants the company to deliver 30% of the Japanese Conglomerate’s revenue, up from 10% now.
To get access to businesses ranging from retail to healthcare across Africa, the trading arm of Japan’s Toyota group bought French distribution company CFAO in 2012. The businesses have now been integrated into Toyota Tsusho’s operations, which was mainly involved with vehicle sales.
In reference to Africa’s contribution to Toyota Tsusho’s annual revenue of $60 billion, CFAO Group Chairman and CEO, Richard Bielle said “in the coming 20 years, we should increase from 10% to 30%”. The goal is based on forecast which shows Africa’s population will account for a third of the world’s population by 2050.
Bielle also said the Africa division is investing 100 million to 150 million Euros every year, as it seeks to boost its food retail, production and consumer goods sales businesses. CFAO automotive business, which includes distribution of Toyotas and Mercedes Benz in Kenya, accounts for 60% of revenue, while healthcare, including pharmaceutical distribution, make up a third. The rest come from technology and energy.
The CFAO Chairman revealed that the company wants to achieve a balance where all the businesses contribute close to an equal share of revenue. He said this can be achieved through increased investments.