Volkswagen Group sign MoU to set up automotive industry in Ethiopia
Addis Ababa, January 28, 2019 (FBC) –The Ethiopian Investment Commission (EIC) and Volkswagen Group have signed a memorandum of understanding (MoU) that enables the latter to set up an automotive industry in Ethiopia.
Commissioner of Ethiopian Investment Commission, Abebe Abebayehu, and Thomas Schaefer, Head of the Volkswagen Sub-Saharan Africa Region signed the MoU in the presence of German President Frank-Walter Steinmeier and Ethiopia’s Minister of Finance, Ahmed Shide.
Today’s signing ceremony sets a significant milestone for setting up a possible automotive in Ethiopia and attract more investors from Germany. Ethiopia is a priority and focus country for Germany under the G20-“Compact with Africa” initiative.
Volkswagen will focus on four key pillars: the establishment of a vehicle assembly facility, localization of automotive components, introduction of mobility concepts such as app-based car sharing and ride hailing as well as the opening of a training center.
As such, Volkswagen will work closely with the Ethiopian higher education and training institutions for skills development and capacity building of local talent.
Schaefer commented: “As one of the fastest growing economies and with the second highest population in the continent, Ethiopia is an ideal country to advance our Sub-Saharan Africa development strategy. Additionally, Volkswagen intends on tapping into existing expertise and strategic resources in Ethiopian to help to establish a thriving automotive components industry.”
Ethiopia becomes the third country in Sub-Saharan Africa to sign a Memorandum of Understanding with Volkswagen. It follows Ghana and Nigeria who both signed MoUs with Volkswagen in August 2018.
Volkswagen has been manufacturing vehicles in South Africa since 1951. In Africa, Volkswagen also has vehicle assembly operations in Algeria, Kenya and Rwanda.
During their meeting with Prime Minister Dr Abiy Ahmed last October in Addis Ababa, senior executives of Volkswagen (VW) expressed their keen interest to invest in Ethiopia.
The Premier assured VW that the government will do everything to help VW invest in Ethiopia.
The Volkswagen Group with its headquarters in Wolfsburg, Germany, is one of the world’s leading manufacturers of automobiles and commercial vehicles.
The Volkswagen Group offers a wide range of financial services, including dealer and customer financing, leasing, banking and insurance activities, and fleet management.