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President Museveni lays Foundation Stone at Kiira Vehicle Plant Site

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President Museveni lays Foundation Stone at Kiira Vehicle Plant Site

Today, President Yoweri Kaguta Museveni laid the Foundation Stone at the Kiira Vehicle Plant Site, Jinja Industrial, and Business Park. The president was received by the Rt. Hon. Robinah Nabbanja, the Prime Minister of the Republic of Uganda and Hon. Dr. Monica Musenero, the Minister of Science, Technology, and Innovation, Office of the President.

The Construction of the Kiira Vehicle Plant is undertaken by the UPDF through National Enterprise Corporation exemplifying the visionary leadership of H.E. the President in the development of the local capacity to undertake strategic Government projects. The works commenced in February 2019 with the progress at 85% as of July 2021. The strategic investment toward the establishment of the Kiira Vehicle Plant on 100 acres of land at the Jinja Industrial and Business Park has drawn interest by a wide range of actors for participation in building the Indigenous Motor Vehicle Industry. 

The Kiira Vehicle Plant Start-Up Facilities are designed for the production of buses (electric and internal combustion engine) targeting the domestic and regional market with a goal of 65% supply chain localization by 2030. The Plant will provide Contract-Manufacturing Services for multiple Original Equipment Manufacturers (OEMs) participating in the regional market enabling them to enhance Automotive Local Content Participation while offsetting costs of logistics and benefiting from the ingredient fiscal incentive regime.

Building the Indigenous Motor Vehicle Industry is consistent with Uganda’s aspirations and pathways to Vision 2040 outlined in the National Development Plan III and the NRM Manifesto 2021 – 2026. Specifically, (1) Promotion of Local Manufacturing of Motor Vehicles; (2) Establishment of Efficient, Integrated, Sustainable, Safe and Inclusive Public Transport System(s); and (3) Promotion of Environmentally Friendly Transport Solutions. It provides an unprecedented opportunity for promoting value addition to Uganda’s mineral and other natural resources with the view of import substitution and export promotion of vehicles, parts, components, and systems.

Uganda is endowed with minerals, which can be used for vehicle parts manufacturing including iron ore for automotive steel; silica sand for glass; rare earth elements for glass glazing, catalytic converters, batteries, & electronics; graphite for brake pads; oil for plastics; cobalt & lithium for batteries; kaolin, marble, and vermiculite for paint; tungsten, columbite, tantalite, chromite, and titanium for metal alloys; copper for auto electric conductors and motors, among others. In his Remarks, H.E. the President emphasized the need to work with the private sector, to see to it that as many vehicle parts, components, and systems are made in Uganda. The Kiira Vehicle Plant alone cannot produce all these vehicle parts, components, and systems. It is simply not practical.

The Government acting through the Uganda National Bureau of Standards acquired a World Manufacturer Identifier (WMI) for Uganda “BU”, from the International Society of Automotive Engineers (SAE). Vehicles produced in Uganda can now be uniquely identified in the international market, paving the way to export vehicles made in Uganda.

Building the Indigenous Motor Vehicle Industry is projected to create over 100,000 jobs directly and indirectly in the medium term. Already over UGX 28 Billion has been put back into the Economy through Local Sourcing of Construction Materials: Sand, Reinforcement Steel, Structural Steel, Cement, Iron Sheets, Hardcore for Rockfill, Aggregates, Murram, Eucalyptus Poles, among others).

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