Ethiopia sees the signing of an agreement between Russian carmaker AvtoVAZ and Ethio-Engineering Group to produce LADA cars in the East African country as a "positive step" towards strengthening cooperation between the two countries in the transportation sector, Dr. Belete Molla, Ethiopia's Minister of Innovation and Technology, told Sputnik Africa.
"We see the Lada manufacturing agreement as a positive step towards increased cooperation in the transport sector. We hope for future partnerships in areas like automotive parts production and technology sharing," the minister said.
Highlighting the reputation of LADA cars for "robustness and reliability," the minister said that "local production of LADA cars could lead to better availability and affordability of spare parts, enhancing after-sales service and consumer confidence."
He added that LADA automobiles are "well-suited" for Ethiopia's varied terrain and challenging road conditions. In addition, their simple design can also "translate to easier maintenance and repairs."
"Several factors could make Russian vehicles like Lada cars appealing to the Ethiopian market. As you may know Lada has a historical presence in Ethiopia, dating back to the Soviet era. This existing brand familiarity could provide an advantage over less established brands," Minister Molla said.
On December 17, an agreement was signed by AvtoVAZ Export Director Ilya Savinov, and the CEO of Ethio-Engineering Group, Suleyeman Dedefo, green lighting the production of Russian LADA cars in the East African country. As part of the deal, Ethio-Engineering Group, which produces and trades automotive products, will engage in serial assembly of LADA vehicles based on vehicle kits supplied from Russia.
It also became known that the new locally assembled Russian cars could be supplied to other African countries — Sudan, South Sudan, Kenya and Somalia.
The Russian carmaker is actively expanding its presence in Africa. In November, a Ghanaian company received a license to sell LADA cars. According to Lawrence Awuku-Boateng, Chairman of the Ghanaian-Russian Business Development Council, negotiations are underway with AvtoVAZ on localizing the production of Russian cars in the country.