German car maker, Volkswagen is bullish on the African auto market.

It has now decided to establish another assembling plant in Ghana after the one established in Lagos-Nigeria, bringing to five, the number of such plants in Africa.

The one in South Africa is a manufacturing plant while the one proposed for Ghana and existing ones in Kenya, Rwanda and Nigeria are assembly plants.

Ghana and Germany signed a Memorandum of Understanding (MoU) to establish the vehicle assembly facility and to assess the feasibility of a modern Mobility Concept for Ghana.

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Mr. Thomas Schaefer, Volkswagen Head of the Sub-Saharan Region and the Ghana’s Minister of Trade and Industry, Alan Kyerenmaten signed the MOU on Thursday in the presence of visiting Angela Merkel, Chancellor of Germany.

Mr. Mahamudu Bawumia, Vice-President of the Republic of Ghana, was also at the ceremony.

According to Volkswagen, the project would also include developing a fully-fledged sales and service network in Ghana as well as establishing a Training Academy for Production and After Sales.

Volkswagen undertook to commence with a feasibility study for an integrated mobility solution which will include a review of the commercial viability of introducing car sharing, ride-hailing and shuttle services by way of a Ghanaian subsidiary of VWSA, or the appointment of a local service provider.

In turn, the Ghanaian Government undertook to develop a comprehensive Automotive Industry Policy which will incentivise and facilitate vehicle manufacturing and assembly in Ghana.

This includes a preferential procurement policy for locally assembled vehicles.

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