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).
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.