Volkswagen Group starts producing e-Tractors from Rwanda facility beating Tesla in Africa

Volkswagen Group Africa is beating Tesla in Africa.

The company has announced the start of operations of its multifunctional facility in Rwanda, to pilot modern farming with e-tractors on the continent.

The facility is in Gashora, about 60 kilometers from Kigali, the capital city of Rwanda, which is one of the countries forming the Arusha-based, East African Community.

The GenFarm Project is a holistic ecosystem of e-powered mechanised farming service for rural areas in Africa that is reliable, sustainable and environmentally friendly.

It also provides mobility services for transportation of goods and people.

In June 2023, Volkswagen Group Africa signed a Memorandum of Understanding (MoU) with the Government of Rwanda to provide land for the establishment of the GenFarm Project.

“We are growing our footprint in Africa and regard Rwanda as a key growth market. This project demonstrates our commitment to sustainable practices and highlights our ability to provide mobility solutions to the rural community in addition to the urban community currently serviced by our Volkswagen Mobility Solutions Rwanda business.

The GenFarm Project fosters technological innovation and aligns with Volkswagen Group’s strategy to generate meaningful value for both society and the environment through sustainable mobility,” said Martina Biene, Volkswagen Group Africa Chairperson and Managing Director.

The GenFarm Project is piloted in Rwanda in partnership with Volkswagen Mobility Solutions Rwanda and Volkswagen Group Innovation Centre Europe. 

The Empowerment Hub (e-Hub), currently a pre-Hub built around specifically equipped standard containers while in the initial phase, will be a key component of the GenFarm.

Preparation for the construction of the actual e-Hub is underway and is expected to be operational by the first half of 2025. Equipped with a photovoltaic power system and the energy storage system, the e-Hub will supply clean energy, storage space and business space to the cooperatives.

This includes space for their service operations, e-tractor services, and e-scooter services. Volkswagen Group Africa facilitates the stakeholder steering committee and reviews post pilot expansion possibilities.

Volkswagen Group Innovation Centre Europe supplies the e-tractors and provides equipment for the project from Wolfsburg in Germany while Volkswagen Mobile Solutions Rwanda is the catalyst in operating the pilot hub and provides input and support to the operations.

The Managing Director of Volkswagen Group Innovation, Dr. Nikolai Ardey described how the GenFarm operates.

“We want to offer various services in the empowerment hubs. Farmers can book an e-tractor including a trained driver for affordable sustainable farming. The unique selling point of the project is the use of the battery swap system. In this way, the battery becomes part of the hub’s energy infrastructure as well as energy storage for the tractor,” said Ardey.

The GenFarm Project is supported jointly by the Rwanda Institute for Conservation Agriculture (RICA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. RICA is an entity which combines research, education and extension services to train Rwanda’s next generation of farmers and agriculturists.

On behalf of the German government, GIZ among others is acquiring the necessary machinery for the e-tractors and assessing necessary services the hub is planned to provide for local farmers.

All partners bring unique expertise and contributions to the GenFarm Project.

The pilot phase of the project will benefit cooperatives in Gashora which is in the Bugesera district.

Over the last 30 years, Rwanda’s economy has developed significantly.

The agricultural sector has remained pivotal in improving the livelihoods of Rwandans and sustaining the country’s economy. The agricultural sector currently accounts for 25 percent of the national Gross Domestic Product.

From left, Teddy Mugabo, CEO: Greenfund Rwanda, Michael Frambourg, Executive Manager: Sustainability Solutions, Volkswagen Group Innovation Centre Europe, Martina Biene, Chairperson & Managing Director: Volkswagen Group Africa, Dr Ron Rosati, Vice Chancellor: RICA, Dr Telesphore Ndabamenye, Director General: Rwanda Agriculture Board, Serge Kamuhinda, CEO: Volkswagen Mobility Solutions Rwanda, Hildegard Muller, President: VDA.