- LTL Holdings Ltd plans to expand into power generation in Africa, eyeing independent power producer (IPP) opportunities.
- LTL is establishing a distribution transformer assembly plant in Tanzania, with an annual manufacturing capacity of 1,000 transformers.
LTL Holdings Ltd plans to expand into power generation in Africa, eyeing independent power producer (IPP) opportunities after setting up a US $ 2.2 million distribution transformer assembly plant in Tanzania.
“That’s why we are setting up a transformer assembly plant in Tanzania to cater to this region. As the next step, we are planning to move into power generation,” LTL Holdings Ltd Chief Executive Officer and Executive Director Mohamed Jalaldeen Mohamed Nuhuman Marikkar said.
LTL is establishing a distribution transformer assembly plant in Tanzania, with an annual manufacturing capacity of 1,000 transformers. The plant will meet the growing demand for transformers in Tanzania and neighbouring countries such as Uganda, Kenya, Mozambique and Ethiopia.
The operations in Tanzania will initially commence as an assembly plant for transformer parts imported from Sri Lanka in an existing facility obtained on a leasehold basis.
Within two years, the operation will develop into a comprehensive assembly facility on its premises, with plans for further development into a fully-fledged manufacturing plant with a higher capacity. With 44 per cent of the population in Africa lacking access to electricity, he noted that LTL had identified opportunities on the continent. The region accounts for a substantial portion of the group’s export revenue.
Countries like Nigeria, Uganda, Namibia, Mozambique, Tanzania, Kenya, Botswana, and Sierra Leone are LTL’s focus markets for exploring IPP opportunities.
In addition, LTL also identified Cambodia in Southeast Asia as a potential market. Despite 82.5 per cent of the population having access to electricity, the reliability of supply remains challenging, with two-thirds of households with access facing frequent power shortages in Cambodia.