Volkswagen In the presence of Frank-Walter Steinmeier, President of the Federal Republic of Germany signed a Memorandum of Understanding (MoU) to expand its operations in the Sub-Saharan African region. The MOU provides for setting up a vehicle assembly unit, indigenization of automotive components, the introduction of app-based taxi aggregators and establishment of a training center. The MOU, which can increase the German footprint in Sub-Saharan region in particular and Africa in general, was signed by Thomas Schaefer, Head of the Volkswagen Sub-Saharan Africa Region, and the Commissioner of the Ethiopian Investment Commission (EIC), Abebe Abebayehu, recently. Incidentally, Ethiopia is a priority and focus country for Germany under the G20-“Compact with Africa” initiative. As a part of the deal, Volkswagen is committed to working closely with the Ethiopian higher education and training institutions for skill development and capacity building of local talent. Ethiopia is the third country in the region to sign an MOU with Volkswagen, after Ghana and Nigeria. The German corporation has been manufacturing vehicles in South Africa since 1951. Apart from these countries, Volkswagen also has vehicle assembly operations in Algeria, Kenya, and Rwanda. Volkswagen in Ghana will set up a vehicle assembly facility and conduct a feasibility study for an integrated mobility solutions concept. In Nigeria, Volkswagen implemented a phased approach of vehicle assembly with long term view of establishing Nigeria as an automotive hub in West Africa. Germany considers the African market as a fast expanding one though its present size is relatively small.
