Rwanda: Chery to establish electric vehicle assembly plant

The Rwandan government approved an investment agreement with Chery Holding Rwanda Ltd on Friday, September 18, 2026, for the establishment of an electric vehicle assembly plant in Rwanda, adding a concrete industrial project to the country’s strategy for electric mobility.

The decision was made during a Cabinet meeting chaired by Paul Kagame. The government statement mentions a strategic agreement between the state and the Rwandan subsidiary of the Chinese manufacturer to set up the assembly unit. However, the publicly released documents do not specify the investment amount, the chosen site, the annual capacity, or the production start date.

The project extends discussions that began in 2025. The Rwanda Development Board and Chery Holding Group signed a memorandum of understanding in April 2025 covering electric mobility, green energy, agriculture, and mining. In April 2026, the Rwandan president also met with Xu Hui, vice president and secretary of the board of directors of Chery Holding, to discuss several investment opportunities, including electric vehicle assembly.

The announced establishment comes as Kigali seeks to accelerate the electrification of its vehicle fleet. Fully electric vehicles, along with their batteries and charging equipment, are exempt from VAT until June 30, 2028, according to the tax measures reported by Rwandan media. Authorities have also requested this year that public institutions allocate at least 30% of their new vehicle purchases to fully electric models.

Chery is already commercially present in Rwanda with thermal, hybrid, and electric models. The local market remains limited: data cited by Kigali Today indicate that there were 512 fully electric vehicles and 6,660 hybrids recorded in 2024.