Volkswagen Continues Expansion In Sub-Saharan Africa

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Thomas Schaefer, VW Head of the Sub-Saharan Region and the Minister of Trade and Industry, Alan Kyerenmaten of Ghana signed a Memorandum of Understanding (MOU) in the presence of Angela Merkel, Chancellor of Germany and Mahamudu Bawumia, Vice-President of the Republic of Ghana to establishing a vehicle assembly facility and to assess the feasibility of a modern Mobility Concept for Ghana.

This would also include developing a fully-fledged sales and service network in Ghana as well as establishing a Training Academy for production and after sales.

Volkswagen undertook to commence with a feasibility study for an integrated mobility solution which will include a review of the commercial viability of introducing car sharing, ride hailing and shuttle services by way of a Ghanaian subsidiary of VWSA or the appointment of a local service provider.

In turn, the Ghanaian Government undertook to develop a comprehensive Automotive Industry Policy which will incentivise and facilitate vehicle manufacturing and assembly in Ghana. This includes a preferential procurement policy for locally assembled vehicles.

Schaefer commented, “we are impressed with the determination and desire of the Ghanaian Government to develop a motor industry. As the second biggest economy in West Africa, Ghana is the ideal next building block in our Sub-Saharan Africa development strategy. The realization of the MOU should see our assembly locations increase from four to five, the other locations are in South Africa, Kenya, Rwanda and Nigeria. Our long term commitment to this region is real and sustainable. We believe that our committed actions and delivery of the last two years are proof of this.“

“The first locally assembled vehicles are planned to be on the streets in Accra in early 2019,“ added Schaefer.

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