German automaker, Volkswagen (VW), is set to start assembling cars in Rwanda by end of 2017 after signing a Memorandum of understanding with the government of Rwanda in December.
The assembly plant will produce at least 5,000 vehicles per year could be set up in Kigali by the end of 2017.
“Volkswagen is consistently developing market potentials in Africa. Only a few hours ago, we inaugurated our third production facility in Africa in Kenya. Today in Rwanda, we are launching a concept that will foster individual mobility in this rapidly developing country and make this market a further pillar of the Volkswagen brand’s commitment to Africa,” CEO Thomas Schäfer of Volkswagen Group in South Africa said.
According to a statement released by the government of Rwanda, VW will establish an environmentally compatible local vehicle production facility in Rwanda’s capital, Kigali, to cover vehicle demand in Rwanda. The vehicles will be easy to maintain, low on fuel consumption and gas emission.
The project is in line with Rwanda’s policies to protect the environment, create jobs, and make Rwanda a pioneer in technology and innovation according to Rwanda Development Board (RDB) chief executive Francis Gatare.
The new manufacturing centre will create opportunities for the Rwandans to be training in car production, since VW is looking into establishing a local technical academy to ease transfer of technology and skills.
Rwanda population of young tech-savvy people and its capital, Kigali, being the most connected city on the continent is well suited to be a pioneer of new mobility solutions.
VW will Begin the investigation phase in January 2017 with the aim of assembling the first cars in Rwanda before end 2017.
The German car manufacturer expands to Rwanda in its efforts to develop its market potentials on the African continent. The firm inaugurated its third production facility in Africa, in Kenya in December while two others are operational in Nigeria and South Africa
#Volkswagen to start assembling cars in #Rwanda by end 2017 https://t.co/pwGBcNKqhz @RDBrwanda pic.twitter.com/Q1LVBF7KmE
— Government of Rwanda (@RwandaGov) December 21, 2016
