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Hyundai Opens Vehicle Assembly Plant in Ethiopia
South Korea’s Hyundai Motor Company has entered into the Ethiopian automobile market recently, following in the footsteps of German car automaker Volkswagen. Hyundai is expected to assemble more than 10,000 vehicles annually at its Ethiopian plant.
The plant will assemble trucks and passenger hatchbacks cars and will serve other East African countries including Somalia, Djibouti, Eritrea, Sudan and Kenya.
The plant was established at a cost of $17.5 million and will create employment opportunities for 200 people initially, and with the possibility to create 1,000 jobs once it goes fully operational.
Hyundai is making a magnificent impact in Africa having disclosed Hyundai Sante Fe 2019 in the Ghanaian market early this year. Its entrance in Ethiopia establishes the country as a preferred investment hub in East Africa. Last year, Ethiopia was named Africa’s fastest growing economy with a growth rate of 8.5 per cent making it an attractive investment destination.
Volkswagen signed a Memorandum of Understanding (MoU) with Ethiopian Investment Commission (EIC) in January 2019 enabling it to establish a car assembly facility in Ethiopia. By doing so, Ethiopia has become the third Sub-Saharan country to pen such an agreement, with Ghana and Nigeria.
