Wednesday, July 24, 2019

DR RUGUNDA SAYS UGANDA’S AUTOMOTIVE INDUSTRY KEY FOR BALANCE OF TRADE


BY Moses Sserwanga

The Prime Minister of Uganda Rt. Hon. Dr. Ruhakana Rugunda has stressed the critical role Kiira Motors Corporation and the nascent automotive industry will play to reduce Uganda’s import bill and balance the country ‘s trade with the outside world.

“ We import far more goods than we export and this is a situation which must change. We need to reduce our import bill and balance our trade by exporting high quality - locally made products like the cars which will be produced by the Kiira Motors Corporation” Dr Rugunda stated.

He said that Kiira Motors Corporation, the flagship for Mission Vehicles made in Uganda was a very important national program of strategic importance that should be supported all the way- to deliver quality and affordable vehicles for the domestic, regional and international markets. He said Uganda should leverage the newly created African Continental Free Trade Area (AFCFTA) by supplying high quality affordable products. AFCFTA was created following the African Continental Free Trade Agreement among 54 of the 55 African Union nations. It is the largest in the world in terms of participating countries since the formation of the World Trade Organisation.

A jovial Dr. Rugunda observed that with a huge available market for cars, where 630,000 units are expected to be bought in the East African Region annually by 2032, there is need to streamline Uganda’s automotive industry across the entire value chain so that Ugandans can be stimulated to make car parts and supply them to the Kiira Vehicle Plant in Jinja. “We are looking at real possibilities where Kiira Motors and the automotive sector in general will be at the center for creating many opportunities across the value chain”, he added.

The Prime Minister made the remarks yesterday at a colourful ceremony where he presided over the transfer of Kiira Motors Corporation, a State Enterprise established to undertake the Commercialisation of the Kiira Electric Vehicle Project, from the Ministry of Trade, Industry and Cooperatives to the Ministry of Science, Technology and Innovation (MOSTI). Hon. Amelia Kyambadde the Minister of Trade, Industry and Cooperatives handed over the ownership instruments of Kiira Motors to her Colleague the Minister of Science Technology and Innovation (MOSTI), Hon. Dr. Elioda Tumwesigye.
Others present to witness the seamless handover were Prof. Henry Arinaitwe who represented the Vice Chancellor Makerere University, the Permanent Secretary MOSTI, Mr. David. O.O. Obong, the Executive Chairman of Kiira Motors Corporation, Hon. Prof. Sandy Stevens Tickodri-Tobgoa and the Chief Executive Officer of Kiira Motors, Mr. Paul Isaac Musasizi. The Prime Minister said the symbolic handover was a testament to the cordial working relations among government ministries to foster economic growth and ensure the country is transformed to middle income status.

Trade Minister, Hon. Amelia Kyambadde, reminded the meeting that Kiira Motors Corporation is a state enterprise which was incorporated under the Uganda Companies Act, 2012, to champion the development of the domestic automotive value chain for job and wealth creation in line with Uganda Vision 2040. The equity partners are government of the Republic of Uganda represented by the Ministry of Science, Technology and Innovation holding 96% of the initial stock and Makerere University holding 4%. She said that while under her ministry, Kiira Motors had registered major milestones that included the construction and installation of a 3.7km long 33kV medium voltage electricity line connecting the Kiira Vehicle Plant to the national electricity grid and installation of a 5.4km long 6-inch pipeline connecting the plant site to the Jinja municipal water supply system among others.

Mrs. Kyambadde who has been championing Uganda’s participation in the Africa Free Trade Area expressed confidence in the capabilities and organisational capacity of Kiira Motors Corporation under its new mother Ministry of Science Trade and Innovation to deliver on their promises to develop green mobility technologies that will be herald across the world. “Kiira Motors is on the right trajectory and it has all our support, “she stated.

Hon. Dr. Elioda Tumwesigye who is now superintending over the Kiira Motors national enterprise thanked President Yoweri Museveni for setting up the Ministry of Science, Technology and Innovation because it has given hope to Ugandan innovators who hitherto had no known home. He said that apart from setting up MOSTI, government has gone ahead to provide an innovation fund of shs.10bn for the Financial Year 2019/20 to support local innovators. The fund is expected to grow to a tune of shs.500bn.

Hon. Dr. Tumwesigye explained that the ministry will register all innovators across the country and set up a committee of experts who will select those innovators with innovations that can be commercialised to realise economic growth and national development. It is those selected innovators that will be funded and supported by Government. While briefing the meeting about the progress made by Kiira Motors, the company’s CEO Mr. Paul Isaac Musasizi said that 324 Ugandans are being employed at the Kiira Vehicles Plant construction site in Jinja. He noted that the construction of Key Access Roads and the Start-Up Assembly Building are underway, with the latter at Substructure Level.

Musasizi expressed the importance of putting in place an automotive policy to regulate vehicle imports and exports, to ensure progressive enhancement of automotive local content participation through technology transfer, development and diffusion.
The writer is a media and communications consultant and advocate of the High Court of Ugandamsserwanga@gmail.com

Saturday, July 6, 2019

UGANDA TO DEVELOP AUTOMOTIVE POLICY:MINISTER TUMWESIGYE RALLIES THE YOUTH TO BENEFIT FROM THE CAR PRODUCTION INDUSTRY


BY MOSES SSERWANGA
The development of Uganda’s nascent automotive industry took yet another giant step when Minister of Science Technology and Innovation, Dr. Elioda Tumwesigye, inaugurated a eight member taskforce to draft the country’s first Automotive Industry Development  Policy .

At a colourful function held at the Ministry’s head office at Rumee Towers in Kampala , Dr. Tumwesigye seized the moment to rally Ugandans especially the youth to strategically position themselves to benefit from the abundant opportunities available along the car production value chain.
With the automotive market expected to hit 500,000 units (half a million cars)  bought every year in the East African Region alone by 2027, Dr. Tumwesigye noted that the industry will be one of Uganda’s and the region ‘s major economic drivers for many years to come.

Coupled with a rapid growing population not only in Uganda but the African continent at large and vast natural resources in Uganda like Iron Ore, Banana fiber and oil, the jovial minister hastened to add that innovative and productive Ugandans should prepare themselves to supply car parts and other services once Uganda goes  full throttle in the production of cars at a commercial scale. He emphasised  the need for a skilled human resource to ensure compliance to acceptable international standards .

The Kiira Vehicles Plant is being  constructed at the Jinja Industrial Park by the Uganda People’s Defence Force , (UPDF) under its business army -the National Enterprise Corporation ,NEC headed by Gen James Mugira and is slated to be completed by 2021.


The task force is mandated to conclude its  work in three months and is composed of experts who include ,Mr. Emmanuel  Freddie Mugunga , Under Secretary at The Ministry of Science Technology and Innovation (MoSTI) who is also the Chairman , Eng Tony Bafirawala Kavuma, the Chief Executive Mechanical; Engineer at the Ministry of Works  and Vice Chairman of the Task Force, Mr. Emmanuel Mutahunga ,Commissioner External trade at the Ministry of Trade, Industry and Cooperative , Mr Moses Ogwapus Commisiner Tax Policy at the Ministry of Finance , Planning and Economic Development, Mr. Jacob Lumonya ,Prinicipal Executive Mechanical Engineer at ministry of Works and Transport, Mr. Richard Ebong , Manager Legal Metrology Department at Uganda Bureau of Standards,  Mr. Emmanuel  Omene Principal Economist Ministry of Science Technology and Innovation  and Paul Omara from the private sector and the Chief Executive officer of  Ngetta Tropical holdings Ltd..

.The committee will be supported by a secretariat headed by Mr. Paul Isaac musasizi ,the Chief Executive Officer , (CEO) of Kiira Motors ,the country’s flagship for cars made in Uganda  . Other memebrs of the secretariat are ,Arthur  Tumusiime Asiimwe, Allan Muhumuza, Pauline Korukundo and  Thatcher Nakimuli Mpanga .

Dr ,Abubakar Muhammad Moki, the Commissioner Policy Development at the Cabinet Secretariat told the Task Force members to draft  an automotive development policy that will be people centered and serve the interests of the citizen. “The policy should be informed and evidence based , widely consulted , to be inclusive and easily communicated to enable easy assess and compliance,” he stressed .

According to the Task Force ‘s chairman Mr. Mugunga , Uganda’s Automotive Development Policy is expected to make an important contribution to the transformation of the automotive industry , enabling increased value addition and local content participation while securing standardization and regulatory compliance by the value chain actors.

The taskforce will periodically report to the wider multi-sectoral stakeholder consultative forum to consider the developed policy proposals. The multi-sectoral stakeholder consultative forum chaired by the Permanent Secretary Ministry of science ,Technology and Innoation  shall include , Ministry of justice  and Constitutional Affairs, Kiira Motors Corporation , Uganda National Bureau of Standards ,Ministry of East Africa Community affairs, Ministry of Finance, Planning and Economic Development ,Ministry of Trade Industry and cooperatives ,Uganda Revenue Authority , Uganda National Roads Authority , Ministry of Works , Uganda Investment Authority , Uganda national bureau of Standards , Uganda Police force and the Ministry of Science Technology and innovation.
The writer is a media and communications consultant/trainer and
Advocate of the High Court of Uganda
msserwanga@gmail.com