Volkswagen in Talks About Starting Vehicle Production in Rwanda

Volkswagen South Africa is in talks with Rwanda to open a joint-venture assembly plant with the Rwandan government.

Vehicle assembly in Rwanda could happen by the end of 2017, according to Volkswagen. Last January, VW opened an assembly plant in Kenya, which was a joint venture with the Kenyan government, according to African Business magazine. 

Volkswagen also plans to launch a ride-hailing service similar to Uber in Rwanda, according to African Business magazine. The service may utilize an electric version of the Volkswagen Golf.

The Kenyan facility receives part assembled Polos and Vivos from Volkswagen South Africa’s Uitenhage assembly plant in the Eastern Cape for final assembly. It will handle 1,000 cars this year, increasing over time to 5,000 units, according to the business publication.

Other companies, such as Toyota, Nissan and Mitsubishi, already have similar facilities in Kenya, mainly producing buses and trucks rather than cars. Total production stands at about 10,000 units a year, according to the Kenya Vehicle Manufacturers Association.