German carmaker Volkswagen has announced its plan to settle car assembly plant in Ethiopia. This announcement was made before the German President on his visit to Ethiopia.
Volkswagen will build both a car plant and a training center in Ethiopia. A country with one of the world’s lowest rate of car ownership. A 2014 report by Deloitte puts car ownership in Ethiopia to two cars per 1,000 people.
Indeed owning a car for the average Ethiopian is too expensive, given the fact government imposes a 200% import tax on vehicle importation.