German carmaker Volkswagen have announced they plan to assemble cars in Ethiopia.
The announcement was made in front of the German president as he visited the country.
The carmaker said in a statement that they will build a car plant and a training centre.
Ethiopia has the world's lowest rate of car ownership, with only two cars per 1,000 inhabitants, according to a 2014 Deloitte report.
Many Ethiopians have found owning a car too expensive because of import taxes of up to 200 percent.