• July 16, 2024

Volkswagen Invests In The Automotive Industry Of Ethiopia

The Volkswagen brand remains committed to emerging markets in sub-Saharan Africa. In the existence of Frank-Walter Steinmeier, President of the Federal Republic of Germany, a Memorandum of Understanding was inked by Thomas Schaefer, head of the sub-Saharan African region, Volkswagen, and the Commissioner of the EIC (Ethiopian Investment Commission).

Volkswagen Invests In The Automotive Industry Of Ethiopia

In the last 10 Years, GDP development in Ethiopia was over 8%, one of the highest in the world. In addition, Ethiopia is a precedence country for Germany in the context of the G20 “Pact with Africa” initiative.

Volkswagen will focus on four main pillars: creating a vehicle assembly, locating car parts, introducing mobility concepts, such as sharing platforms and vehicle presentation, as well as opening a training center. As such, Volkswagen will work closely with Ethiopian higher education institutions for training skills development and local talent training.

Schaefer said, “Ethiopia, one of the fastest-growing economies and the second fastest growing continent, is an ideal country to advance our development strategy for sub-Saharan Africa, Volkswagen plans skills and strategic resources in Ethiopia to create a thriving auto parts industry.”

Ethiopia becomes the third sub-Saharan African country to sign a memorandum of understanding with Volkswagen. Nigeria and Ghana were among them to have signed memoranda of understanding with Volkswagen in April 2018. In Ghana, Volkswagen will introduce a vehicle assembly line and a feasibility study for a concept of integrated mobility solutions. In Nigeria, Volkswagen will introduce a gradual approach to vehicle assembly, aiming for long-term auto hub Nigeria in West Africa.

As part of its Transform 2025+ brand strategy, Volkswagen is fortifying the regions and focuses on new emerging markets. The Sub-Saharan Africa region is playing an increasingly important role. Although the African car market is relatively small nowadays, it is in the interest of the region to develop into a growing market for the automotive in the future.

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