Volkswagen to Invest 4.5 Billion Rand in South Africa
Volkswagen Group Enhances its Position in South Africa with Increased Funds for its Sites Implanted in the Country
September 01st, 2015
On the 10th of July, Germany and Kenya came together to sign agreements on two major development projects held in Kenya within the energy and water sectors. The German Development Bank (KFW) within the plans have agreed to pledge and provide 33.05 Euros to the Nairobi Water Distribution Project, in order to assure the supply to those within under-served areas in Kenya’s capital city. The agreement has come to light as the funds donated by Germany intend to benefit more than 4 million people as it will greatly improve their daily access to clean, fresh uncontaminated water. The funds provided by (KFW) shall also include support to capacity building of the works of the Nairobi Water and Sewage Company with a total of 2.3 million Euros.
On Thursday August 27th 2015, the German car manufacturing giant, Volkswagen, decided a new investment plan in South Africa, pledging 4.5 billion rand to its branch in the African state. Indeed the money, which converts to around €300 million will be put to good use, enhancing production facilities and quality, promoting better local supplier capacity and developing and training employees.
Mr. Thomas Schaefer, managing director of Volkswagen Group South Africa (VWSA) announced the move saying that although a low percentage of the world’s vehicle production is based in South Africa, it was a welcome step to see further investment in the field in the country. He also emphasized the new export market that Africa will likely provide in years to come, whilst also being located at an easy enough area for exports to South Asia.
The South Africa site has been specializing in production of the Polo car up until 2014 and it is projected that over 66,000 vehicles will be exported this year. Indeed, Volkswagen Group South Africa previously received around 6 billion rand from the central office, for that particular project and this new tranche of money shows once again the continued trust and confidence in the company’s branch. This new step in growing relations between the car manufacturing giant and developing countries in an attempt to expand markets for the former and offering considerable opportunities as concerns employment and training of workers for the latter. Indeed South Africa will no doubt be pleased by this news as it seeks to maintain its position as a land where foreign direct investment is welcome and safe.
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