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Volkswagen expands its footprint in Africa


“Rwanda has great potential”.

That is the word from Thomas Schäfer, CEO of Volkswagen Group South Africa speaking at Wednesday’s launch of VW’s Integrated mobility solutions in Kigali in Rwanda alongside President Paul Kagame.

The expansion programme includes local vehicle assembly and the introduction of what VWSA said were innovative mobility services and a sales as well as a retail outlet, CFAO Volkswagen Rwanda.

“Volkswagen is thus taking the next step toward developing new up-and-coming markets. In a long-term perspective, the brand intends to play a leading role in the emerging automotive industry in Africa. With this engagement, Volkswagen is making a substantial contribution to Africa’s economic development,” the company said in a statement.

“Rwanda has great potential. The country is young, modern and hungry for individual mobility. With a package specifically tailored to the region comprising local vehicle production, new vehicle business, and innovative mobility services, we intend to harness the opportunities for growth and create new opportunities,” Schäfer said.

“Rwanda can become a blueprint for other African and emerging market countries.”

Volkswagen said that at the centre of the project “are app-based car sharing and ride-hailing offerings that take individual mobility to a broader share of the population.”

“The project kicks off with community car sharing primarily aimed at companies in the capital, Kigali. A ride-hailing service will follow later this year. Further mobility services are planned for 2019,” Volkswagen said

“Rwanda is the ideal market for new mobility solutions because the people there are very digitally-minded and tech-savvy. Moreover, demand for mobility is growing and the present offerings can scarcely keep pace with these needs.

On the production side, local assembly of the latest-generationPolo and Passat will now commence with other models planned for the future. Initially, it is planned to build up to 1,000 vehicles per year depending on demand and the success of the mobility fleet, with an annual production capacity of up to 5,000 units. 

Assembly is flexibly designed and can be expanded further if required. The sales and service retail outlet CFAO Volkswagen Rwanda is part of the same complex and guarantees comprehensive customer service. 

Volkswagen will spend some US $20 million in Rwanda for phase one.

(Pics: Supplied)