Russian Lada cars will be manufactured in Ethiopia for the African market

 Ethiopia will begin manufacture of Russian Lada automobiles for the African market, according to the country's Ambassador to Russia, Cham Ugala Uriat. The move is noteworthy because it exemplifies why Ethiopia joined BRICS: its low manufacturing cost base may help keep production costs down while also offering access to the expanding African market.

Uriat stated, "Avtovaz has already signed a deal with one of the Ethiopian companies, so we'll see Russian Lada cars in neighbouring countries in the near future." He also mentioned that the cars will be made in Ethiopia. Lada offers a selection of SUVs that are appropriate for the African market.
According to Uriat, Russia may supply automobiles to Sudan, South Sudan, Kenya, and Somalia in particular. He expressed optimism that production would begin soon.
He said that other Russian automakers "are showing interest now to go to Ethiopia to build assembling lines." The envoy disclosed that two other firms are in conversation with the Ethiopian side over that matter.
A expanding middle class is another benefit of Ethiopia, which has one of Africa's fastest-growing economies. Although the renewal of its WTO membership is still pending, it is a member of the pan-African AfCFTA and the South-East African COMESA trade accords.
Ethiopia's participation in COMESA grants it free trade access to Burundi, Comoros, the Democratic Republic of the Congo, Djibouti, Egypt, Eswatini, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Uganda, Zambia, and Zimbabwe. COMESA has a total population of over 640 million people and a GDP of approximately USD918 billion.

Posted on : 13 Jul,2024 | News Source : ABNews

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