Kiira Motors seeks lumpsum funding to breakeven
The executive chairperson of Kiira Motors Corporation (KMC), Prof Tickodri Togboa speaks during the launch of a skilling programme aimed at equipping Makerere University students with expertise in electric mobility and related technologies on October 22, 2024. PHOTO | BUSEIN SAMILU
What you need to know:
- When Kiira Motors launched its business case in 2015, the strategy projected breakeven by 2023, contingent upon securing sufficient funding.
The Executive Chairperson of Kiira Motors Corporation (KMC), Prof Tickodri Togboa, has stated that a lump sum funding approach is essential for the company to breakeven by 2030 as anticipated.
Speaking at the launch of a skilling programme aimed at equipping Makerere University students with expertise in electric mobility and related technologies, Prof Togboa highlighted the challenges posed by the current quarterly funding system. He emphasised that this funding model hinders the execution of multiple planned projects.
“The best funding option would be a lump sum rather than the current quarterly disbursement. We need to secure funding up front and then hold Kiira accountable for results, instead of relying on the existing budget system,” he explained on Tuesday.
When KMC launched its business case in 2015, the strategy projected breakeven by 2023, contingent upon securing sufficient funding. However, after Cabinet approval of the funding strategy in 2018, Prof Togboa noted that the target has been adjusted to 2030, contingent on available resources and the implementation of outlined projects.
Uganda has been looking forward to large-scale production from its state-owned auto plant, established in 2011 and operational since 2018, following government funding. The plant aims to produce 5,000 vehicles annually, primarily buses, to enhance sustainable mass transit options across the continent while reducing greenhouse gas emissions. It occupies 100 acres of land in Jinja.
According to company records, KMC has received Shs335 billion from the government between 2018 and 2023. In March of this year, company officials submitted a proposed investment budget of Shs524 billion to Parliament for consideration.
Prof Togboa expressed confidence that achieving breakeven would be feasible with comprehensive funding, enabling an increase in vehicle production for a market that is already prepared to receive them.
Ms Nwanne Vwede-Obahor, the Resident Representative of the United Nations Development Programme (UNDP), stated that increased investment in the sector could catalyze growth, given Uganda's positive outlook toward embracing e-mobility and renewable energy.
The skilling programme was launched in collaboration with UNDP and Kiira Motors, enrolling 25 students from various disciplines, including Electrical, Biomedical, Software, Mechanical Engineering, and Physics. The initiative aims to provide foundational knowledge in electric vehicle technology and renewable energy systems, fostering innovation and practical skills through hands-on training.
“This skilling program addresses several objectives, notably contributing to solutions for youth unemployment and creating green jobs in Uganda,” Ms Vwede-Obahor remarked.
Some of the Makerere University students who will undergo the skilling programme.
In remarks delivered by Acting Deputy Vice Chancellor (Academic Affairs) Prof Buyinza Mukadasi, Makerere University Vice Chancellor Prof Barnabas Nawangwe emphasized that the program aims to empower young people to develop skills, drive innovation in e-mobility, and contribute to the country’s economic development.
Eng Paul Musaazi, Chief Executive Officer of Kiira Motors, added, “This program is designed to equip participants with the knowledge and expertise needed to tackle contemporary challenges in the automotive industry while promoting innovation and entrepreneurship.”
