German automaker is starting a ride-hailing service in Rwanda

folarin okunola

December 26, 2016 7:39 AM

Rwanda makes sense for Volkswagen because Uber has not set up shop there and dominated the market like it has in Kenya.

Volkswagen's brand chief Herbert Diess delivers his speech as Volkswagen presents a turnaround plan at a news conference in Wolfsburg, Germany November 22, 2016. REUTERS/Fabian Bimmer

2016 has not been the greatest year for Volkswagen and the company is actively trying to put its woes behind it.

To do so, it's looking to invest in Africa with a ride-hailing service and a production facility. Reuters reports that the automaker will set up the former in Rwanda and the latter will be in Kenya.

According to an Engadget report, this is not the first time Volkswagen is investing in ride-sharing. Earlier this year, the German automaker made a $300 million investment into European company Gett.

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Rwanda also makes sense for Volkswagen because Uber has not set up shop there, and dominated the market, like it has in Kenya.

VW's plant in Kenya will start producing the Polo Vivo electric compact car - the first manufacturing it's done in Kenya since the 70's, and the company is also looking to start making cars in Algeria.

None of this is like most of the big-money moves usually associated with VW, but the company has to start somewhere and it's decided that Africa is the place to begin.

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