Kiira Motors needs Shs500b to start operations, says minister Musenero

“We need money to finish manufacturing our stock, and when we have finished, we will be able to manufacture 200 buses at a go,” she said, noting that in the body shop, there are many chambers - paint shops, which should be doubled and once doubled, Kiira will double the entire production capacity from 2,500 to 5,000 buses annually.  

Ms Musenero, who was speaking during the Kiira Vehicle Plant Open Day and E-Mobility Expo in Jinja City, said that with money, the company would be able to make different classes of buses to meet client specifications.

“Most companies that order buses, order in hundreds, hence if I have the money, we can have mass production,” she said, indicating that Uganda needs to move faster to control greenhouse emissions, which are expected to increase as sub-Saharan Africa’s vehicle market size grows from 25 million to more than 58 million by 2040. 

Government has set eyes on developing Uganda’s e-mobility potential, with the country positioning itself as a net source, rather than a consumer of e-mobility tools and solutions.

Uganda remains a net automobile importer, with motor vehicles and transport equipment imports growing to $795m in June 2023 from $115m in June 2003, while petroleum products imports, primarily used in vehicles, rose from $193m to $2.1b in the period. 

“These accounted for 27 percent of our total import bill in the 2022/23 financial year, contributing significantly to hemorrhaging of our foreign reserves and positioning us as a consumer of finished mobility products, predominantly at end-of-life,” she said. 

Under the National E-mobility Strategy, government says vehicles imported into Uganda are 85 percent fully built and old with an average age of 16 years at first registration, which creates a consumerism culture and undermines the prospect of domestic value addition. Therefore, Ms Musenero said government will press ahead with developing an e-mobility value chain that contributes at least 12.5 percent to gross national product, with 65 percent local content by 2040.

First Deputy Prime Minister Rebecca Kadaga,  said government is committed to fully transition to e-mobility in public transport by 2030 to achieve sustainable development.

“With a projected population increase to 75 million by 2040, Uganda is in a prime position to intensify demand for sustainable transportation solutions,” she said, noting that the transition will generate more than 500,000 green jobs, achieve a 65 percent local production rate in the e-vehicle value chain, and reduce pollution by 25 percent. 

“To support this, government plans to invest $ 1.74b through 2028; with an already high import bill for fuel costing more than $.2m per year, this initiative should significantly reduce foreign exchange drain,” she said, urging investors seeking to invest in the e-mobility sector to engage government to see how they can be supported with incentives and other mechanisms. 

“There is an opportunity to enter discussions with manufacturers, buyers, and other players, setting the stage for collaborations and connecting entrepreneurs, investors, and policymakers who are defining the future of e-mobility in the region,” Ms Kadaga said. 

E-mobility hub 

According to Prof Sandy Stevens Tickodri-Togboa, the Kiira Motors executive chairperson, the e-mobility expo 2024 under the theme: The future is green, the future is mow, sought to shed light on the e-mobility ecosystem, providing a platform to inform, educate, and drive influence for the e-mobility industry. 

“Government is committed to positioning Uganda as a hub for e-mobility and has invested over $100m in establishing production facilities, product development, human capital development and e-mobility infrastructure,”  he says 

[email protected]