Volkswagen has signed a Memorandum of Understanding with the Ghanaian government to establish a vehicle assembly a vehicle assembly facility in that country.
The MOU was signed in Accra on Thursday by Thomas Schaefer, the head of VW's Sub-Saharan Region and Ghana's Trade and Industry Minister, Alan Kyerenmaten and witnessed by German Chancellor, Angela Merkel and Ghana's Vice President Mahamudu Bawumia.
In terms of the agreement, VW will also assess the feasibility of a modern Mobility Concept for Ghana, signalling the continuation of the company's expansion into sub-Saharan Africa.
Volkswagen said that the establishment of the production facility will also include developing a fully-fledged sales and service network in Ghana as well as establishing a Training Academy for Production and After Sales.
"Volkswagen undertook to commence with a feasibility study for an integrated mobility solution which will include a review of the commercial viability of introducing car sharing, ride-hailing and shuttle services by way of a Ghanaian subsidiary of VWSA, or the appointment of a local service provider," the company said in a statement.
"In turn, the Ghanaian Government undertook to develop a comprehensive Automotive Industry Policy which will incentivise and facilitate vehicle manufacturing and assembly in Ghana. This includes a preferential procurement policy for locally assembled vehicles".
"We are impressed with the determination and desire of the Ghanaian Government to develop a motor industry. As the second biggest economy in West Africa, Ghana is the ideal next building block in our Sub-Saharan Africa development strategy," Schaefer said.
"The realisation of the MOU should see our assembly locations increase from four to five, the other locations are in South Africa, Kenya, Rwanda and Nigeria. Our long-term commitment to this region is real and sustainable. We believe that our committed actions and delivery of the last two years are proof of this," he said.
