On Wednesday, Rwanda launched its first domestically built car from the assembly line at Volkswagen’s new factory in the nation’s capital, Kigali.
Despite low levels of car ownership in Rwanda, Volkswagen (VW) is hoping to sell the vehicles and use some of them in an Uber-like car-sharing system, as the automaker seeks to tap into the ride-sharing market in the region.
Global ride-sharing companies such as Uber are yet to commence operations in Rwanda, meaning that Volkswagen will have the edge by launching its service there ahead of major rivals.
The Polo is the first model being assembled at the site, and the company plans to reach annual production of 5,000 cars in the first phase.
Volkswagen’s South Africa boss, Thomas Schaefer, told Reuters on Wednesday at the launch event in Kigali, that the 20-million-dollar investment will create up to 1,000 jobs.
President Paul Kagame, who attended the event said the facility is an important step for the country as it represents a new chapter in the nation’s journey of economic transformation.
According to the nation’s tax collection body, car ownership remains low in the country; with only over 200,000 cars privately registered since 1997 in a nation of 12 million people.
Reports say most of the cars on the roads are second-hand imported vehicles.
