Ethiopia: Govt Drives Growth in Private Sector Automotive Industry

13 October 2024
The Ethiopian Herald (Addis Ababa)

The Ethiopian government, through the Ministry of Transport and Logistics (MoTL), has taken significant steps to foster the growth of the private automotive industry.

A strategic partnership has been established between local automotive firm O'clock Motors and the Chinese company Global U-Car Technology, involving a 250 million USD agreement designed to enhance the sector.

During the announcement on Thursday, Kedel Magest, advisor to the Transport and Logistics Minister, emphasized the ministry's commitment to implementing effective policies that foster collaboration with the private sector. He noted that this partnership is expected to significantly impact the transport and logistics landscape in the country.

Both companies are dedicated to complying with government policies and supporting the ministry's initiatives. O'clock Motors' General Manager, TameneKasahun, noted that the partnership will enable five years of joint operations, with a target of supplying 4,000 vehicles annually to Ethiopian customers.

Currently, O'clock Motors operates with a capital of one billion Birr, focusing on the production of various vehicle types, including small cars and heavy-duty trucks. The company aims to increase its production capacity to deliver over 600 vehicles per year.

In addition to its business objectives, O'clock Motors is committed to fulfilling its social responsibilities by engaging in community projects. In Tigray State, the company has donated over 460 quintals of flour and provided financial support for various social initiatives. Furthermore, it plans to assist disadvantaged individuals near its factories during holiday seasons.

O'clock Motors intends to import over 16 different vehicle models while establishing assembly plants within Ethiopia. Meanwhile, Global U-Car Technology will contribute more than 40 vehicle models for distribution across various states. This partnership not only represents a significant advancement for the automotive sector but also showcases the government's role in facilitating private sector growth, it was stated.

Read the original article on Ethiopian Herald.

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