10 THINGS YOU NEED TO KNOW ABOUT VOLKSWAGEN RWANDA DEAL

Thomas Schafer the Chief Executive of Volkswagen South Africa (L) pose for a photo with RDB Chief Executive Officer, Clare Akamanzi in Kigali.

The first Made-in-Rwanda car by German carmaker Volkswagen could hit the roads in May this year, according to the firm’s officials.

This follows an announcement by the firm that they are in the process of setting up a plant to assemble cars locally and roll out a mobility solution in the second quarter of this year.

Below are details about the firm and its investment in Rwanda.

1. Genesis of the deal

It all started in December 2016 when Volkswagen (VW) and the Government of Rwanda signed a Memorandum of Understanding on the planned investment.

The Memorandum of Understanding also paved way for a feasibility study by VW on the Rwandan market and ecosystem.

The feasibility study was done around September last year with officials from both sides, saying that the findings showed the viability of the investment.

Thomas Schafer, the chief executive of Volkswagen South Africa, said they were also attracted to establish a presence in the country by aspects in the ecosystems such as sustained growth, tech adoption among other factors.

“We chose Rwanda because there is political stability, zero tolerance to corruption, growth rate of 7 per cent, a young and tech savvy population. Volkswagen also received strong support from the government and cooperation through the Rwanda Development Board. Rwanda is also spearheading the Smart City agenda, which is in our plans,” Schafer said.

2. Process of establishing presence in Rwanda

The firm has since set up and registered a local company, Volkswagen Mobility Solutions Rwanda. City lawyer, Athanase Rutabingwa, was appointed as resident director of the company.

The firm’s address is in the Special Economic Zone and will host the assembly plant, retail and service centre. The firm’s chief executive said that, already, equipment for the plant are on their way to the port of Mombasa.

3. Operations in Kigali

Volkswagen Mobility Solutions Rwanda will be involved in assembly and retail of cars, service centre and running a mobility solution centre in Kigali.

The Gasabo based plant will also be involved in training services with an aim to transfer skills to Rwandans who will work in the plant.

The investment is set to be rolled out in three phases, expected to provide up to 1000 local jobs in the first phase of production.

Consequent phases could see the firm increase production capacity, car models, employees, scale up the mobility solutions and possibility of exports.

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