Volkswagen will set up a manufacturing plant in Rwanda, which will look to produce 1,000 cars annually.
Volkswagen cars produced will be environmentally-friendly, have low fuel consumption and quick access to the local market, according to Capital Business.
Thomas Schäfer, the chair and chief executive of Volkswagen Group South Africa, said the plant will be operational by the end of the year, according to New Times.
The cars produced will be up for lease or purchase in Rwanda and will be developed entirely from local production in an effort to create jobs in the country, according to New Times.
The Rwanda location will be the fourth production facility of VW on the Africa continent with other plants in South Africa.