Volkswagen Group Africa has officially commenced operations at its multifunctional facility in Gashora, Rwanda, to pilot modern farming using electric tractors (e-tractors) in Africa. The initiative, known as the GenFarm project, aims to establish a comprehensive ecosystem of e-powered mechanized farming services tailored for rural Africa. Volkswagen claims that this ecosystem is reliable, sustainable, and environmentally friendly.
The GenFarm project is being piloted in Rwanda through a collaboration between Volkswagen Mobility Solutions Rwanda and the Volkswagen Group Innovation Centre Europe. In addition to its focus on modern farming, the project also offers mobility services for the transportation of goods and people.
Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, emphasized that the project promotes technological innovation and aligns with the group’s strategy to create meaningful value for society and the environment through sustainable mobility solutions.
In June 2023, Volkswagen Group Africa signed an agreement with the Rwandan government to allocate land for the project. This land will be used to provide clean energy and business space to local farming cooperatives. A key component of the project is the Empowerment Hub (e-Hub), which is expected to be fully operational by 2025. The e-Hub will offer storage and operational space for e-tractors and e-scooters.
Dr. Nikolai Ardey, Managing Director of Volkswagen Group Innovation, explained that farmers can book an e-tractor, complete with a trained driver, to facilitate affordable and sustainable farming practices. He highlighted the unique selling point of the project: the use of a battery swap system. This system integrates the battery into the hub’s energy infrastructure, serving as both energy storage for the tractor and part of the overall energy solution.
The Volkswagen Group Innovation Centre Europe will supply the electric tractors and other necessary equipment from Germany, while Volkswagen Mobility Solutions Rwanda will manage operations at the pilot hub. The project is supported by the Rwanda Institute for Conservation Agriculture (RICA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). RICA focuses on research and education to train Rwanda’s future farmers, while GIZ will procure machinery and evaluate the services offered by the hub to local farmers.
According to the World Bank, renewable energy consumption in Rwanda was reported at 79.9% in 2022. To further accelerate the transition to electric vehicles and reduce greenhouse gas emissions, the Rwandan government has renewed a zero-rated import duty on electric and hybrid vehicles, extending the tax exemption until the end of the fiscal year 2024/25.
The e-mobility sector in Rwanda has seen significant growth recently. IZI Electric received a $222,000 grant from the Rwanda Green Fund to expand its operations, while BasiGo Rwanda secured a $225,000 recoverable grant to upgrade its charging infrastructure, supporting its fleet of electric public transport buses in the country.
