Automobile manufacturer, Volkswagen (VW) had recently ventured in to Rwanda with a launch of a new Assembly Plant, whilst the same company denied reports appeared from Sri Lanka from late 2015 to 2017.
Whilst the Sri Lanka’s new ‘Good Governance’ government earlier forecasted an establishment of a Volkswagen Car Assembly plant in the North Western Province’s Kuliyapitya, Sri Lanka, that aimed to boost job opportunities, although seemed ‘Broken Promise’ according to analysts was highlighted by political and business analysts as one of the key marketing slogans of Sri Lanka’s present government that came in to power from 8thJanuary 2015. However later it was revealed by media agencies and reports quoting the Prime Minister Ranil Wickremesinghe who confirmed on 4thJanuary 2017 that that “the Volkswagen Company had not invested in the Kuliyapitiya vehicle assembly plant and that the government had decided not to allow Volkswagen to invest in Sri Lanka as the company had an issue”. That time Prime Minister Wickremesinghe had said that “However, Volkswagen would be one of the brands of vehicles which would be assembled at the Kuliyapitiya plant.”
Meanwhile in Rwanda, Volkswagen’s latest Car Assembly Plant was a launching ceremony attended by Rwanda’s President Paul Kagame. And the first domestically built car has rolled off the assembly line at Volkswagen’s new factory in Kigali. With 5,000 cars envisioned for the first phase, VW aims both to sell cars and use them in the Uber-like car-sharing system.
Reports added that the Polo is the first model being made at the site to be followed by the Passat, Tiguan, Amarok and Teramont models.
“The cars use components shipped from South Africa to Rwanda and will be more environmentally friendly than older models in terms of emission levels” reports said quoting VW officials. According to statistics In 2017, there were 300,000 cars registered in Rwanda, a country of 12 million people, according to revenue authority records and most of the cars were imported as used vehicles from Japan.
Reports also noted that VW’s US $ 20 million investment in Rwanda will create up to 1,000 jobs, and is an example of much needed spending by overseas firms in the nation, which receives US $ 1 billion in foreign aid and development assistance but is making business-friendly reforms. The Kigali VW assembly plant will in the future provide brand new cars to the local consumers, but other services are already in the offer. All the services were launched as VW Integrated Mobility Solutions.
According to Michaella Rugwizangoga, the CEO of VW Rwanda, a couple of services are already on offer and the first service is corporate car sharing to institutions, corporates and NGOs.
“We shall start with 40 vehicles and increase to 150 vehicles with time. Then we shall bring ride-hailing with 50 vehicles,” said Rugwizangoga. Africa’s Free Trade Agreement, which will enable cars to move freely from country to country without any tariffs was on the mind of VW Chairman for South Africa Thomas Schaefer.
“Connecting the African brothers; Kenya, Rwanda, Nigeria, South Africa will create an African market of a billion people… You can walk away from exporting to America, exporting to Germany, what’s the point? You’ve got the market right here!” Schaefer had said.
The fact that Volkswagen has launched its integrated mobility concept in Kigali is a major step towards the future for the country and its people. The project is also an important step for Volkswagen – in testing new business models and opening up new markets in Africa.
“Rwanda is a young, modern and digital country – and because of that, it is perfectly suited for new, interconnected mobility services”, Volkswagen Group South Africa CEO, Thomas Schaefer had further added. Schaefer is responsible for the sub-Saharan region with its 49 countries, where Volkswagen is present.