Uganda Kiira Motors
Uganda will spend $40 million to start car production by mid-2021

In the first stage of a $263-million assembly plant, Uganda will spend $40 million to start car production by mid-2021.

Following Uganda’s plan to invest $40 million in the first phase of a $263-million vehicle assembly plant, the country is targeting her car production by mid-2021 in a bid to raise demand in the East African Community region.

“We shall start making our vehicles, but also have room for others to assemble,” Musasizi noted.

Isaac Paul Musasizi, the chief executive officer of state-owned Kiira Motors stated that the construction of this facility started in February.

According to him, it’s annual output is initially envisaged at 5,000 vehicles and will reach 150,000 units with the assembly of buses, trucks, pick-ups and sports utility vehicles.

Also, Musasizi claimed that it is through this that the country will start making its vehicles and at the same time do vehicle assembling.

“The regional EAC offers a lucrative opportunity because at least 85% of its vehicle imports are used models,” Musasizi said.

Furthermore, Musasizi stated that Kiira Motors which has so far produced two car prototypes and a solar-powered bus plans to produce sedans on a small scale and is already in talks with prospective partners for the provision of technology, to take an equity stake or undertake joint ventures.

“We are talking to the big fish in the automotive industry. We have reached out to players across the globe,” Musasizi added.

According to a report by the Ministry of Science, Technology and Innovation, which also holds a 96% stake in Kiira Motors, the regional market for passenger and commercial vehicles in its five-member nations — Uganda, Kenya, Tanzania, Rwanda and Burundi — could double in the next 13 years to almost 630,000 annually.

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Meanwhile, Kenya and Rwanda are already investing in vehicle-assembly industries.

By John Dalton Kigozi