- Information available to YEN.com.gh suggests that VW may set up its West Africa head office in Nigeria
- This follows discussions held with the country by key officials of the company
- Reports of VW's entry into Ghana has been met with mixed reactions
Information available to YEN.com.gh shows that German car manufacturer, Volkswagen (VW) is set to open its West African Head Office in Nigeria.
This follows the signing of a Memorandum of Understanding (MoU) to turn the country into the “automotive hub” of West Africa.
According to a report by MyNewsGH.com, agreement to this effect was signed during German Chancellor Angela Merkel’s visit to Nigeria.
Present at the signing ceremony in Abuja was the Nigeria’s Minister of Trade, Industry and Investment, Okey Enelamah.
Unlike Rwanda’s assembly plant which will be serving most of the East African Market, Ghana’s Volkswagen assembly plant will only serve the Ghanaian market while the market for West Africa will be supplied from Nigeria where VW’s West Africa office will be.
According to a statement by Volkswagen on Friday, August 31, 2018, the agreement will see new plants being built in both countries, thereby expanding the automobile market in the continent.
Commenting on the proposed venture, Thomas Schaefer, head of Volkswagen’s sub-Saharan region, said: “Both memorandums of understanding demonstrate one thing: the seriousness with which Volkswagen takes its commitment to Africa.”
On Thursday, August 30, 2018, President Akufo Addo received German Chancellor; Angela Merkel, for bilateral discussions as part of her three-nation West African tour.
The German Chancellor on her arrival had deliberations at the Jubilee House which focused on efforts at Ghana’s economic resurgence and migration.
One of the highlights of the meeting was an intention to set up a VW assembly plant in Ghana, a move that drew mixed reactions from a cross-section of Ghanaians.
Local car manufacturer, Kantanka Automobile Limited raised objections to the decision, citing the failure of the government to support local companies.
A government official, Gabby Otchere-Darko, however advised the company to be proactive in its business approach in order to attract support from the government.
Ghana News Today: President Akufo-Addo’s Tour | #Yencomgh