Plans by Volkswagen to build Rwanda’s first vehicle assembly plant moved a notch higher after the German carmaker completed a feasibility study of the project.
The Rwanda Development Board (RDB) confirmed the progress, noting that the report by Volkswagen contains “positive” results. Although details of the report are still undisclosed, RDB said it now expects Volkswagen to go ahead with the project, which is expected to boost the country’s economy by creating jobs and advancing technology.
“Volkswagen did a feasibility study and it is positive. That’s why right now they are in the process of working out the logistics,” Clare Akamanzi, CEO of RDB told The EastAfrican in an interview.
The cost of the project is unknown but is expected to have been determined in the report, whose results were not provided by RDB.
The plant is expected to be located in Kigali — where Volkwagen’s “Think Blue” environmentally friendly model vehicles will be assembled. The German company also announced that it will look into assembling the electric versions of its VW Golf model in the country.
Groundwork could kick off this year, according to RDB. This will be the second such deal in East Africa after Volkswagen returned to Kenya last year after being away for 40 years.