Volkswagen Expansion in Africa With Ride-Hailing App Gains Traction
It’s been a year since one of the world’s biggest automotive companies, Volkswagen, bet on tiny and landlocked Rwanda as part of its expansion strategy in Africa.
Since the 1950s, the German automaker has assembled cars in South Africa, and later in Nigeria and Kenya. The carmaker’s renewed interest in Africa is driven by the demand for brand new cars propelled by an emerging middle class as well as competition from companies like Toyota, Nissan, and Peugeot who are ramping up production in the continent. In Rwanda, Volkswagen set up a $20 million operation expected to produce up to 5,000 vehicles a year and create about 1,000 jobs.
In Kigali, VW also placed a wager on another first for its global operations: ride-hailing services. The project is part of an initiative to use Rwanda t...