Posted on 31 Jan 2024
Chinese automaker BYD forecasts over 70% increase in its net profit in 2023, as it continues to announce its international expansion. Rwanda is the latest market the carmaker is introducing its battery electric Atto 3 to, Kallanish reports.
The company expects a net profit of CNY 2.9 billion ($408 million) to CNY 3.1 billion, an on-year increase of 74.5-86.5%, having boosted its EV sales to over 3 million units last year.
In addition to overseas sales growth, the profitability improvement was attributed to an enhanced brand power, the expansion of scale advantages, and the upgrade of industrial chain cost control capabilities.
In Rwanda, BYD will work with local car dealer group CFAO Mobility to sell its cars. The African nation aims to have 20% of buses, 30% of motorcycles and 8% of cars electrified by 2030.
“Our partnership with BYD is fully aligned with our commitment to sustainable development,” comments Cheruvu Srinivas, CFAO Rwanda’s chief operating officer. “We are convinced that BYD’s innovative new energy vehicle product matrix, combined with our extensive sales network, will effectively promote the vigorous development of Rwanda’s electric vehicle market.”
While incentivising the purchase of EVs, Rwanda is pushing its mining sector development, targeting $1.5 billion in revenue this year, according to the Economic and Commercial Section of the Embassy in the Republic of Rwanda.
The government is focusing on a number of “priority interventions” to address challenges faced by the mining industry. These include engaging with local and international financial institutions to secure financing for mining, processing equipment and mineral trade; as well as strengthening exploration efforts to estimate mineral reserves and attract potential investment.
On Monday, mining giant Rio Tinto and the Rwandan government signed an MOU for the exploration and mining of lithium in Rwanda’s Western Province, though further details weren’t revealed. Last year, the miner inked an earn-in investment and joint venture agreement with London-listed Aterian for the HCK lithium project in Southern Province. Under the deal, Rio can earn up to 75% stake in the project, which is currently 70% owned by Aterian and 30% by HCK Mining Company Limited.
Source:Kallanish
