The Volkswagen Group has signed a memorandum of understanding (MOU) with the Ethiopian government to set up an automotive industry plant in the country.
The Ethiopian government was represented by a commissioner of Ethiopian Investment Commission, Abebe Abebayehu, while the Volkswagen group was represented by Thomas Schaefer, head of the Volkswagen Sub-Saharan Africa Region.
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.
According to Schaefer, “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.”
Schaefer adds that today’s signing ceremony sets a significant milestone for setting up a possible automotive plant in Ethiopia and attract more investors from Germany. Ethiopia is a priority and focus country for Germany under the G20 “Compact with Africa” initiative.
Ethiopia is the third country in Sub-saharan Africa to sign an MoU with the automotive giant. Nigeria and Ghana signed MoUs with the company in 2018.
No date has been given for the establishment of the plant yet.
