Volkswagen is to start an assembling plant of electric vehicles in Rwanda before the end of this year.
The German largest automaker which is developing electric vehicles signed a memorandum of understanding in Kigali.
Claire Akamanzi the Rwanda Development Board (BDB) CEO made the announcement during the CEO forum on Wednesday.
It is the first of its kind aimed at bringing both the local and foreign investor to discussing challenges and sharing experiences, knowledge in investment climate of Rwanda.
Akamanzi declared that the European Union is the biggest investor accounting for over one-third of the investments in Rwanda.
Volkswagen is an EU company which has already made a decision to invest in Rwanda.
“The biggest issue is innovating the way you can have a battery that can stay for long distances that is something VW is doing research on and they’re hoping to make a break through.”
She noted that if they get breakthrough one place they want to come and unleash that is Rwanda, we welcome that. We expect them to begin some of the activities in phases this year.”
The minimum requirement for such companies which Volkswagen already meets is to invest an equivalent of at least USD 10 million in both tangible and intangible assets in Rwanda.
According to World Bank’s Doing Business index 2016, Rwanda is ranked as 1st in East Africa in terms of ease of doing business and 3rd in the entire Sub-Saharan region.