Kiira Motors seeks shs500bn for expansion

Kiira Motors Corporation, the Ugandan electric vehicle manufacturer, is seeking shs 500 billion to expand its production capacity and meet the growing demand for buses in the market.

Dr. Monica Musenero Masanza, the Minister of Science, Technology, and Innovation in the Office of the President, stated that additional funding is needed to enhance their manufacturing capacity.

"We need to have at least 200 busses at any one time which are there that when people come, and as you see, there are different types of busses, because some clients come when they want this particular one, or this particular one,” Dr.Musenero said.

Musenero also highlighted the need for additional funds to double the number of paint shops, which is crucial for increasing the factory's annual production capacity from 2,500 to 5,000 buses.

"There are still things that we need to complete. In the other building, which we told you, you saw, there are many chambers which are called the paint shops, the paint chambers. They are supposed to be double the number which is there now and once we double those, we will double the entire capacity of the factory from 2500 buses a year to 5000.”

She made these remarks at the inaugural Kiira vehicle plant open house and e-Mobility Expo 2024 in Jinja.

Musenero expressed a desire to expand their stock of the buses to better meet customer demand.

" I want to increase my stock, the stock of busses such that I can be able to sell because if I have only, like three of a types, most companies have quick orders, they want 100 busses they want. So if I have the money, I may not have a say for manufacturing the busses to completion, but I can begin the first part, and then it can run very fast.”

She confirmed that Kiira Motor products have a broad market both within Uganda and internationally.

Musenero also revealed that they are targeting the East African region and are in discussions with the South African market, citing a recent visit to the site by Eswatini King as an example.

"First of all, the first market is in the country. We are making a number of contacts, and many people have ordered and meeting their customized orders. We are targeting East Africa, like Tanzania and we are in different talks with companies from there, but we're also targeting South African market, and just yesterday we hosted the King of Eswatini, who formally expressed their interest to act as our marketing hub in southern Africa. So the king himself came here yesterday and came with businessmen, they would want to be distributors of our products in southern Africa."

Isaac Musaasizi, CEO of Kiira Motors Corporation, stated that Kiira Vehicle plant is the largest bus manufacturing facility in Africa.

By August 2024, its initial installed capacity will enable the production of 2,500 buses annually.

"Kira vehicle plant, is the biggest, most competent and most capable bus manufacturing facility on the African continent, sitting on 100 acres of land and fitted with capabilities for frame and body manufacturing, eight shop operations, chess line, trim fine assembly, as well as quality testing and inspection with an initial installed capacity, which should come online by october 2024, of 2500 busses a year, and that boils down to 200 a month and 11 a day."

He noted that they are celebrating two product lines, the coach product which is electric as well as diesel, and the city busses, which come today as purely electric. He added that they are looking at different energy options, including compressed natural gas and other energy options which will be viable in the near future.

Musaasizi addressed the frequently asked question about why Kiira Motors focuses on buses rather than luxury or small cars.

He explained that the majority of people in Uganda and Africa rely on public transportation, making buses a higher priority.

"The data we see today shows that in Uganda, and which is the case for most of the African countries, 82% of the passengers move by road use public transport, 9% use private cars and 9% use border, borders. So for now, someone looking to have interventions the starting point on the passenger side is really the public transport means, and those are the busses.”

He added that they see an opportunity to move from busses to trucks for cargo citing that 96.5% of the cargo in Uganda and for the most of Africa, is actually by road using motor vehicles.

Rebecca Kadaga, the First Deputy Prime Minister and guest of honor, praised the progress in Uganda’s e-mobility sector, highlighting the production of Kiira Motors' Kayoola EVS ready for local and regional markets.

She also commended the Ministry of Science for establishing the vehicle plant in the Busoga region.

Kadaaga announced that the government is committed to achieving a complete transition to electric mobility in public transport by 2030.

"Uganda’s government is committed to a full transition to electric mobility in public transport by 2030, showcasing their dedication to sustainable development. The nation is also fostering an environment ripe for innovation in the green energy sector, with favorable policies, subsidies, and tax incentives aimed at reducing carbon emissions and promoting greener energy."

"Uganda's focus on electric vehicles (EVs) over the next 20 years demonstrates significant progress. Electric buses and motorcycles are becoming a common sight on our roads. By 2040, this strategic embrace of EVs is expected to significantly enhance Uganda’s economy, aiming to contribute 12.5% to the national GDP."