Ethiopia will launch the production of Russian Lada cars on its territory for the African market, the countries Ambassador to Russia Cham Ugala Uriat has said.
The move is significant coming in the wake of Ethiopia's new BRICS membership. For Russia, Ethiopia offers a low manufacturing cost base which will keep production costs down while providing access to the growing African market.
“We’ll see Russian Lada cars in neighboring countries in the near future, because Avtovaz have already signed a deal with one of the Ethiopian companies” Uriat said, adding that those cars will be produced in Ethiopia.
Lada makes a range of SUV suitable for the African market.
Free market
The manufacturer is eyeing Ethiopia's immediate neighbours; Sudan, South Sudan, Kenya and Somalia according to Uriat. He expressed hope that production will start in the near future.
Other Russian auto manufacturers “are showing interest now to go to Ethiopia to build assembling lines” as well, he noted. Two more companies are holding consultations with the Ethiopian side on that issue, the ambassador revealed.
Ethiopia is one of Africa’s fastest-growing economies, and also has a burgeoning middle class.
It is a member of the Africa Continental Free Trade Area (AfCFTA) a pan-African trade agreement and is awaiting a renewal of its World Trade Organization (WTO) membership.
Ethiopia’s AfCFTA membership gives the Russian auto manufacturer access to the continent's 1 billion people market spread across the 54 member states.
