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Volkswagen to build new plants in Ghana, Nigeria

Volkswagen AG said Aug. 31 that it signed two memorandums of understanding with the governments of Ghana and Nigeria to build new plants in both countries as part of its expansion in Sub-Saharan Africa.

The automotive manufacturer will build an assembly plant in Ghana that will also include the development of sales and service network as well as establishment of a training academy for production and after sales in the country.

The carmaker also will conduct a feasibility study in Ghana for integrated mobility solutions, which will review the potential of introducing rental, car-sharing, ride-hailing and shuttle service through a local service provider or a Ghanaian arm of VW South Africa.

As part of the understanding, the government of Ghana will develop a policy that will incentivize production of vehicles in the country, including a preferential procurement policy for locally assembled vehicles.

In Nigeria, the company plans to gradually expand automaking operations with an aim of turning the country into an automotive hub on the western coast of Africa over the long term.

VW also will establish an academy in collaboration with the German government to train employees and the local community in Nigeria in automotive skills as the carmaker plans to develop a vehicle and service network in the country, subject to commercial viability.

Under the agreement, the Nigerian government committed to accelerating the passage of automotive policies that include the transition of used car importation to manufacture and distribution of new passenger vehicles.

The cooperation is in line with the automaker's VW's TRANSFORM 2025+ brand strategy that aims to bolster emerging markets and regions.