European car-marker, Volkswagen is launching a car assembly plant in Rwanda on Wednesday.
This will be the first of such plant in the East African nation.
The vice governor of Rwanda’s central bank, Monique Nsanzabaganwa told Reuters that “It is a vote of confidence for Rwanda.”
“It is good for job creation in Rwanda and making Rwanda a trusted location for services and in this case, manufacturing,” she added.
Volkswagen presence in Africa
Volkswagen already builds vehicles in Kenya.
The latest move is part of the company’s plans to expand significantly in the East Africa region.
The German car-maker announced this year of building up to 5,000 cars per year.
Creating a market in Africa is key for the company.
Volkswagen to start an assembly plant in Rwanda.
Initial $20mn investment in a @Volkswagen assembly plant in the Kigali Special Economic Zone, creating 1000 jobs, with a female chief executive from Rwanda, and a training centre. #Rwanda #Volkswagen pic.twitter.com/A8ZSupD7BU
— Mac-Jordan ???? (@MacJordaN) June 27, 2018
On Tuesday German car manufacturer Mercedes Benz said it is to invest $700m in South Africa as part of expansion plans.
The company says expanding its production operations in South Africa with such an investment will “equip it for the future”.