German automaker Volkswagen (VW) has announced plans to invest $20 million for the first phase of its car assembly plant in Rwanda which will be operational by Q2 this year.
VW plans to assemble three car models including Hatchback Polo, the Passat, a sedan and possibly the Teramont, a large SUV.
The production facility will have an initial annual capacity of up to 5000 units and will employ about 1000 people.
VW and the Rwandan Govt signed an agreement in 2016 to conduct a detailed study to develop a business case for Volkswagen to introduce an integrated automotive mobility concept in Rwanda, which would be a first for Volkswagen worldwide.
Car sharing service
A Rwandan software development start-up company Awesomity Lab will develop a mobility App where VW will offer community car sharing with around 150 vehicles.
This will be followed by a ride hailing service with some initial 150 vehicles in 2018 and in 2019, a public car sharing with some initial 250 cars will be launched.
The German carmaker has already opened car assembly plants in Kenya, South Africa and Nigeria.