AvtoVAZ, the Russian state-owned automaker, and Ethio Engineering Group have signed a letter of intent to collaborate on manufacturing Lada cars in Ethiopia.

The agreement was signed by Ambassador Suleiman Dedefo of Ethio Engineering and Ilya Savinov, Vice President of Sales and Marketing at AvtoVAZ. Savinov expressed Russian companies' growing interest in Ethiopian investments, and Ambassador Dedefo invited Russian businesses to explore opportunities in Ethiopia. The collaboration involves Ethio Engineering initially assembling Lada cars, later transitioning to full production for local and African markets, with a focus on agriculture, agro-processing, mining, and manufacturing sectors.

In September this year, 2Merkato reported that the state-owned Russian automaker had entered into a partnership with an Ethiopian company to establish Lada car production in Ethiopia. According to earlier reports, Lada cars manufactured in Ethiopia have the potential to be exported to other African countries, including Sudan, South Sudan, Kenya, and Somalia. Additionally, there are reports indicating the interest of other Russian car manufacturers in investing in Ethiopia's car assembly sector. Two Russian automakers are engaged in discussions with the Ethiopian government to explore this possibility.

Source (including image): Fana BC and 2Merkato Archives

Image source: Fana BC