During the visit of the Chancellor of Germany Angela Merkel to Nigeria on Friday, Volkswagen took the opportunity to sign a Memorandum of Understanding (MoU) in the presence of both the Chancellor and President Muhammadu Buhari to develop a joint vision for an automotive hub in the country.
The Head of Volkswagen Sub-Saharan Region, Thomas Schaefer signed the agreement on behalf of Volkswagen while the Minister of Industry, Trade and Investment, Dr. Okey Enelamah signed on behalf of Nigeria.
The Volkswagen Brand thus takes the next step in expanding its influence and presence in Sub-Saharan Africa. This cames a day after the signing of another MoU in Ghana in the presence of Chancellor Merkel and Vice President of Ghana, Mahamudu Bawumia whereby Volkswagen committed to set up a vehicle assembly and conduct a detailed feasibility study for the development of an integrated Mobility Solution in Ghana.
In the MoU, Volkswagen undertakes to implement a phased approach in relation to the assembly of vehicles, initially from assembly kits with the long term view of establishing Nigeria as an automotive hub on the West Coast of Africa.
This will include establishing a training academy in conjunction with the German Government, which will train the initial employees. The academy will also provide broader technical training in automotive skills.
It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability.
In turn the Federal Government undertakes to accelerate the approval of the Nigerian Automotive Policy, currently under consideration. This includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.
The government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.
Minister of Industry, Trade and Investment, Dr. Okey Enelamah said, “The MoU is a major step in our walk towards the development of the automotive industry to achieve its potential contribution to the continuous economic development of the country.
“We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy and we remain committed to encouraging and partnering with relevant stakeholders, especially investors and friends of Nigeria.
Our overall objective is to restore assembly and develop local content, thereby creating employment, acquiring technology and reducing pressure on the country’s balance of payment, “he said.
Speaking, Thomas Schaefer said, “This week Volkswagen has been able to demonstrate with conviction that it is serious about its intentions in Sub-Saharan Africa.
We are well placed to become a dominant player in Africa, as the continent continues to stabilise and develop economically, as the last frontier for the automotive industry.”
Volkswagen has a fully-fledged manufacturing facility in South Africa, and assembles vehicles in Kenya, Algeria as well as in Rwanda, in conjunction with an Integrated Mobility Solution offering Community Car Sharing and shortly to be launched Ride Hailing.
Schaefer who is also the President of the Association of African Automobile Manufacturers, stated in his capacity as the President that he believed that it was important that a Pan African Auto pact be developed to promote and grow a connected Auto Industry in Africa.
“Africa’s time is now and with good alignment between the African countries with automotive aspirations we can create intra African trade and a Win-Win situation for all,” concluded Schaefer.