Uganda Media Centre

Statement: “Kiira Vehicle Plant is expected to create over 14,000 Jobs directly and indirectly” – Executive Chairman Kiira Motors #KiiraEVS

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13TH MARCH 2020

SPEECH FOR THE EXECUTIVE CHAIRMAN, KIIRA MOTORS CORPORATION AT THE VISIT OF THE RT. HON. SPEAKER OF PARLIAMENT OF THE REPUBLIC OF UGANDA TO THE KIIRA VEHICLE PLANT SITE
Rt. Hon. Speaker of the Parliament of the Republic of Uganda,
Hon. Minister of Science, Technology and Innovation,
Honorable Members of Parliament,
The Permanent Secretary, Ministry of Science, Technology and Innovation,
The Director General and Delegates from the Busoga Consortium for Development,
The Managing Director and Staff of National Enterprise Corporation,
The Local Council Chairpersons present,
Distinguished Guests, Ladies and Gentlemen.
Rt. Hon. Speaker Kiira Motors Corporation is a brain child of Makerere University having started as an extracurricular activity in 2007 between students and staff at the Makerere University School of Engineering.

Kiira Motors Corporation is a State Enterprise established to Champion Value Addition in the Nascent Domestic Automotive Industry for Job Creation and Diversification of the Economy as Uganda Aspires for Economic Transformation to an Upper Middle Income Economy by 2040 with Industrialisation as the Foundation of this Vision.

The Equity Partners are Government of the Republic of Uganda represented by the Ministry of Science, Technology and Innovation (96%) and Makerere University (4%).

The Ministry of Science, Technology and Innovation is Mandated to Establish the Governance and Management Structures of KMC and Provide Policy Guidance and Oversight to the Nascent Automotive Industry in Uganda.

Rt. Hon. Speaker, Government in April 2018 Approved the Roadmap for the Kiira Vehicle Plant to be set up on 100 Acres of land at the Jinja Industrial and Business Park where we are today. Government further Approved Seed Funding of UGX 143.7 Billion as Capitalisation for the Construction of the Kiira Vehicle Plant Start-Up Facilities; Purchase of Start –Up Plant Machinery, Equipment and Tools; Technology Transfer, and Start-Up Operational Capital.

Construction of the Plant is a Work in Progress.
Rt. Hon. Speaker, Government of the Republic of Uganda is cognisant that the Market Entry Strategy is Assembly of Vehicles (Starting with Buses); Technology Transfer with Reputable Automotive Manufacturer(s); and Progressive Enhancement of the Domestic Value Added in the Automotive Industry through exploring Sustainable Multi-Sectoral Backward, Forward and Lateral Linkages with Mineral, Energy, Education, Agriculture, Industry, ICT, and Transport Sectors for Local Content Participation.

Rt. Hon. Speaker, construction of the Kiira Vehicle Plant started on 12th February 2019 and progress stands at 40% of the Start-Up Facilities comprising of 40,000 Square Meter Production Facilities with capacity of 5,000 Vehicles per Year starting with Buses; 12km, Access and In-Plant Circulation Roads; 3.6 km Fence; and 1.7 km Open Storm Water Channel for Site Drainage. The construction works undertaken by the UPDF through National Enterprise Corporation are scheduled to be completed in June 2021 subject to availability of the requisite funds.

Rt. Hon. Speaker, Kiira Motors Corporation working with China High-Tech Corporation have jointly developed the Kayoola EVS Bus, a fully electric Bus with a range of 300 km on a single charge. One Bus was Jointly built in China at the China High-Tech Corporation Facilities with Engineers from Kiira Motors Corporation. The Second Bus was built by Kiira Motors Corporation Engineers with support from National Enterprise Corporation Staff at Luweero Industries in Nakasongola. The Two Buses are in use providing select shuttle services. Rt. Hon. Speaker, you have just taken a 20km Exhibition Drive on the Kayoola EVS Bus. Rt. Hon. Speaker, it is important to note that the floor of the Kayoola EVS is made out of Bamboo, the interior mainly plastics and aluminum with a steel superstructure and body panels. These provide an unprecedented opportunity for participation of a wide range of local manufacturers making components to feed the production line at the Kiira Vehicle Plant.

Rt. Hon. Speaker, it is against this background that plans have been captured in NDP III to establish a comprehensive Automotive Industrial and Technology Park on over Two Square Miles to support Vehicle Assembly, Parts Manufacturing, Vehicle Testing Facilities, Automotive Recycling Facilities, and the requisite Social Amenities.

Rt. Hon. Speaker, the Strategic Government Investment in the Kiira Vehicle Plant is expected to create over 14,000 Jobs directly and indirectly; catalyze upstream investment in the manufacture of Auto-Parts from Bamboo, Steel, Banana Fiber, etc.; while affirming Uganda’s commitment to enhancement of Local Content Participation as an enabler for Industrialisation along with enhanced environmental stewardship.

Rt. Hon. Speaker, it is important to note that even during the construction of phase one, over UGX 28 Billion is being ploughed back into the Ugandan Economy Sourcing Construction Materials including 840,000 Tons of Marram & Gravel; 800,000 Tons of Sand; 5,000 Tons of Cement; 217,000 Tons of Aggregates; 140,000 Tons of Hardcore for Rock fill, Timber & Eucalyptus Trees, Structural & Reinforcement Steel, 52,000 Iron Sheets, Chain-link, Furniture, Personal Protective Equipment (PPE), Plumbing Materials, etc. ; with over 500 jobs created. Rt. Hon. Speaker, it is important to note that of the over 320 personnel deployed by NEC, over 140 are from the local community; the clerk of works Eng. Lydia Nakandha is a daughter of the Busoga sub-region and resident of Mutai; at Kiira Motors Corporation two of the members of Senior Management are from the Busoga Sub – region, Mr. Albert Akovuku, who studied at Jinja S.S. and Wairaka College is the Director Production and Mr. Richard Madanda who studied at Iganga Boys’ Primary School is the Director Product Development. Additionally, Rt. Hon. Speaker, the Managing Director of Free Construction Limited, the Roads Contractor, Mr. Michael Bagiire is also from the Busoga sub – region.

Rt. Hon. Speaker, Kiira Motors Corporation is indebted to HE. The President and Government of the Republic of Uganda for the trust and support over the years toward establishing the Kiira Vehicle Plant. Our prayer remains the timely unlocking of the funding stream to ensure the commissioning of the Kiira Vehicle Plant by June 2021.

Rt. Hon. Speaker, allow me to extend our utmost gratefulness to you, the Committee on Science, Technology and Innovation and Parliament on behalf of Kiira Motors Corporation for the continued support to Kiira Motors Corporation Highlighting the strategic importance of value addition and import substitution as an enabler for the economic transformation that Uganda prospects in Vision 2040.
For God and my Country.

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