Volkswagen Set to Begin Assembly Operations in Rwanda this May

Posted on : Wednesday, 18th April 2018

German-based automotives giants Volkswagen AG announced that the company will soon begin assembling activities at their newest plant in Rwanda in May. The vehicles assembled at this plant will be put up for sale locally and will also be used for Volkswagen’s very own new ride-sharing service.

An estimated amount of $20 million is said to have been spent on this new facility in Rwanda. This facility is only a small piece of the company’s broader goal of achieving a bigger portion of the sub-Saharan automotive market.

Volkswagen Group, South Africa’s Chief Executive, Thomas Schaefer has said the company in aiming to pinch a significant number of East Africa’s second hand car users and turn them onto first hand cars.

Volkswagen will reportedly produce three models in Rwanda, the hatchback Polo, the Passat and the third will be the Teramont, sports utility vehicle, according to a statement.

The German manufacturers have also partnered with a local company to work its new ride-sharing service, while another partnership has been signed off with to develop a Smartphone application for this service.  

Other global ride-sharing services like Uber are yet to make a move in this market and Volkswagen hope to take full advantage of this fact.

Volkswagen are expecting 500-1000 jobs to be created in phase one alone. Schaefer has said that the ride-hailing service will feed the demand for the assembly plant and will be a very successful venture.

Clare Akamanzi, CEO of the Rwanda Development Board has given her full backing to the deal citing a need for automobiles as Rwanda is a country of 12 million but only had 300,000 cars on road last year.