M a r k e t N e w s

Volkswagen Contemplating Entering Ethiopia

Posted on : Wednesday , 10th October 2018

Volkswagen is considering a component assembly plant in Ethiopia, in addition to the two recently announced assembly plants in Ghana and Nigeria.


The foray into Africa represents a growth opportunity for the car maker in light of the expected recovery of the continent’s economies recently hit by the downturn in commodities. According to the Export-Import Bank’s Africa Trade Report 2018, African economies will grow by 4.1 per cent in 2018. The report has partly attributed the expected growth to the strengthening of oil-producing economies, especially Nigeria, Angola and Libya.

VW spokesperson Andile Dlamini said the company was exploring expansion into Ethiopia “and component assembly is the initial business we are looking at. Vehicle assembly is also under consideration in the long term.”

Establishment of the assembly plants could be initial steps towards building manufacturing capacity on the continent.

This followed the company’s signing of memoranda of understanding (MOUs) with Nigeria and Ghana. It said it wanted to develop a joint vision to secure the development of Nigeria as an automotive hub.

Dlamini said VW would continue to explore opportunities “as and when they present themselves. After having signed the MOUs in Ghana and Nigeria the next country we are in discussion with is Ethiopia to explore potential opportunities going forward. This is more around component supply than vehicle assembly.”He also added saying VW’s operations in Kenya, Rwanda, Nigeria and Ghana were start-ups with a potential installed capacity of 5,000 units. 

Source : www.newtimes.co.rw
Featured Companies
  • /
  • African Business Development Association
  • TITAN Containers A/S
  • Mercury Tube Products
  • SMES Today Magazine
  • DOOREE INTERNATIONAL CO LTD
  • africabusiness.com
  • Your Banner HERE!

Complete List  

Advertisers in previous issue:

  • Specialising in different product lines for road construction industry.
  • SPB Technical Development Ltd., Hungary, is a privately owned company established in 1996 to design and manufacture products of information technology and of the bank sector.
  • ICT Community Portal helps you connect and share information with IT professionals all over the world.
  • One of the top leading manufacturers of the accessories for aluminium door& window in China
  • Rich Holding International is a China based international trading company with an expertise in food industry.
  • The 6th Qingdao International Construction and Decoration Materials Exhibition will focus on providing opportunities for manufacturers to enter the Chinese market .
  • Exporters of major brands like HP, Canon, Epson, lexmark, Acer, Ipod, Toshiba, full range of Notebooks, Printers, Scanners etc.
  • Egineering doors and solid doors
  • Exporter of Alloys & tool steel
  • Syrian Medicare chain has become a Medicare distinct to meet and achieve the increasing demands and requirements, by highlighting the latest recent developments in medical science in various fields, the event is also considered an effective marketing
  • Lanfeng machine Co., LTD is a collection of R&D, production and sales of Fuel dispenser and LPG dispenser, gas station equipment of large enterprises in China.
  • Marble and Granite
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2018 Afrotrade