Volkswagen to develop automotive industry in Ethiopia
In a bid to expand its business in emerging countries in Sub-Saharan Africa, Volkswagen signed a Memorandum of Understanding (MoU) with Ethiopia to develop an automotive industry.
The MoU focuses on four key pillars including: the establishment of a vehicle assembly facility, localisation of automotive components, mobility concepts such as app-based car sharing and ride hailing, and the opening of a training centre. Volkswagen will work closely with the Ethiopian higher education and training institutions for skills development and capacity building of local talent.
The MoU was signed by Thomas Schaefer, Head of the Volkswagen Sub-Saharan Africa Region, and the Commissioner of the Ethiopian Investment Commission (EIC), Abebe Abebayehu, during the state visit of the President of the Federal Republic of Germany, H.E Frank-Walter Steinmeier.
Mr Schaefer commented: “as one of the fastest growing economies and with the second highest population on the continent, Ethiopia is an ideal country to advance our Sub-Saharan Africa development strategy. Volkswagen intends to tap into existing expertise and strategic resources in Ethiopia to help to establish a thriving automotive components industry.”
Over the last ten years, the GDP growth rate in Ethiopia has been above 8% – one of the highest worldwide. Moreover, Ethiopia is a priority and focus country for Germany under the G20- “Compact with Africa” initiative.
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