Uganda to manufacture cars starting this year as cabinet approves cash

Cabinet has approved Shs 24b of this financial year’s budget to be allocated for the commercialisation of the Kiira Electronic Vehicle Project.

The cabinet that sat on April 9 at State House Entebbe under the stewardship of President Museveni also resolved that the commercialisation will be taken in phases and authorised the Minister of Science,Technology and Innovation to put in place the necessary Institutional Framework for the Project.

“The commercialisation of the project is expected to catalyse investment by small and medium Enterprises in the manufacture of vehicle parts, components and autonomy system (brakepads, seats, bolts, nuts, bumpers vehicle electronics and navigation system,among others),” the statement from cabinet reads.

The cabinet also resolved that the project will Increase demand for the utilisation of natural resources such as steel from iron ore deposits, plastics from oil and gas, and lithium batteries from graphite among others, as well as create over 2000 jobs directly and 12,000 jobs indirectly.

In December 2015, Kiira Motors Corporation (KMC) launched its business strategy meant to establish capabilities for manufacturing vehicles in Uganda with production expected to start in 2018 through assembling.

Mr Paul Isaac Musasizi, the chief executive officer of KMC, said the company’s product will include Sedans, pick-ups, crosser-overs, buses and trucks. A Sedan costs $25,000, a Crossover $28,000 and $32,000 for a Pick-up

The project was already allocated 100 and 60 acres of land respectively in Kagogwa village in Kakira Town Council, Jinja District.

The Kiira Electronic Vehicle project strategy as launched in December 2015

Phase I. Pre-start of production (Plant design, construction and development of the Government Automotive Industry Development Plan, partnership Agreements with OEMs for vehicle manufacturing, training and recruitment programs and kick start Kiira Vehicle Development programs) between 2016 -2018

Phase 2. Semi Knockdown (SKDI): Assembly of Pickups, Compact SUVs, Light Duty trucks and buses in partnership with International OEMs (2018-2028)

Phase 3. Launch of Kiira Motors State-of-the-art Paint Shop under SDK. Between 2028-2035.

Phase 4. Launch of State of the art Body Shop

Phase 5. Launch of the Kiira vehicle with 90 per cent engineered in Uganda, between 2035-2040

 

By Victoria Bagaaya