By Marc Navarro Gonzalez 
 

Volkswagen AG (VOW.XE) said Thursday that it is spending around 20 million dollars to enter the app-based mobility market in Rwanda.

The German car maker said it will start providing mobility services, such as car-sharing and ride-hailing, in the country through a new company called Volkswagen Mobility Solutions Rwanda.

Volkswagen said it plans to start a car-sharing service in capital Kigali in the spring, with a ride-hailing app and further services to launch later in the year.

Volkswagen said the fleet for the new services will be produced in a new vehicle-assembly facility in Kigali. Production will start with several hundred cars in mid-2018, but capacity will gradually be expanded to up to 5,000 vehicles a year, it added.

Overall, Volkswagen and its partner companies will create up to 1,000 jobs in Rwanda, the auto maker said.

Volkswagen said it also plans to expand in to other countries in the Sub-Saharan region.

"In a second step, we hope to put the valuable experience gained with ride hailing here in Rwanda to use in other markets where the Volkswagen brand has a presence," said Thomas Schaefer, chairman of Volkswagen Group South Africa.

Write to Marc Navarro Gonzalez at marc.navarrogonzalez@dowjones.com

(END) Dow Jones Newswires

January 18, 2018 10:19 ET (15:19 GMT)