KIGALI, Jan. 18 (Xinhua) -- German automaker Volkswagen (VW) on Thursday announced plan to invest 20 million U.S. dollars for the first phase of its car assembly plant operation in Rwanda.

Cars to be assembled during the phase one include VW Polo and VW Passat for sedans and VW Teramont for SUVs, said Thomas Schafer, managing director of Volkswagen of South Africa, at a news conference in the Rwandan capital Kigali.

"We are planning to spend at least 20 million dollars for phase one of our operation and we are targeting to create up to 1,000 jobs," he said, adding that the initial products will be out mid this year.

According to the agreement signed between VW and the Rwandan government in 2016, the car manufacturer will start assembling cars in Rwanda that are affordable, low on fuel consumption and gas emission.

The German carmaker has already opened car assembly plants in Kenya, South Africa and Nigeria.