By
Moses Sserwanga
In the year ending 2022 , Uganda has made significant
strides in the development of its nascent automotive industry with government
owned automakers Kiira Motors
Corporation (KMC) taking the lead by producing
electric and Internal Combustion Engine (ICE) buses.
This growth has been fueled by the government of
Uganda led by President Yoweri Museveni’s strategic vision and commitment to invest heavily in the
development of the local automotive industry to tap into the global market now
estimated at 2.86n trillion US dollars and projected to hit 9 Trillion USDs by
2030.
There is already a marked mad rush in the global north
to cash in on the lucrative automotive industry as automakers switch to electric vehicles . Around 4.3
million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles
(PHEVs) were sold globally in the first half of 2022 and its only fair that African
countries-Uganda inclusive - should not be left out of this huge market .
In the year
2022, Uganda has captured global headlines –in its concerted effort to champion
locally produced automobiles and E-mobility technologies in the East African region - growing its fleet
of locally produced electric buses and executive coaches –the Kayoola Evs and
the Kayoola Diesel Coaches (KDCs)- respectively .
What
the government of Uganda is doing
As Kiira Motors Corporation has leveraged the Luwero
Industries facilities in Nakasongola to build and put on the market its
validated fully electric buses and the KDCs –government has continued to invest
in the construction of a world class – Kiira Vehicle Plant (KVP) located in the
Jinja Industrial and Business Park –with the first phase (production line ) at
99% completion and the second phase ( body
shop, chassis line, paint shop, Quality Inspection and Testing (QIT) building
and test track among others) –now underway .
Once the Kiira Vehicle Plant is fully operational , it
will have the capacity to produce at least - 500,000 vehicles annually in
Uganda by 2030 along with the establishment of efficient, integrated, sustainable,
safe and inclusive public transport system(s); and promotion of environmentally
friendly transport solutions in the EAC region and the rest of the African
continent.
Uganda’s automotive flagship - Kiira Motors has
produce more electric buses and the diesel coaches which are being operated by
Kilita transporters on the Northern bypass and hired out to government and
private organizations. Uganda Airlines and Civil Aviation Authorities are some
of the early government entities to give a public endorsement of the Ugandan
produced vehicles- some of which have covered 50,000 kilometers on the
road without a hitch.
During the year , KMC also produced the beautiful orange Tondeka buses with fuel
efficient engines and low carbon emissions. This deal was done through contract
manufacturing and the buses have been deployed by Tondeka in a move intended to
decongest the city and offer affordable transport solutions for urban centers.
Although much of what KMC has achieved thus far has
been through technology transfer partnerships with establish and tested
Original Equipment Manufacturers (OEMs) and sourcing materials and parts from
the global supply chains; the company is now working with the Secretariat of Science Technology and
Innovations (STI)- led by Dr. Munica Musenero to ensure the localization of Uganda’s
automotive industry materials and parts supply chain.
“ The automotive industry is ‘an industry of
industries’ and its essential that we harness our rich minerals to establish a
local supply chain for vehicle parts , components, systems and mobility
engineering services,” Prof. Sandy Stevens Tickodri-Togboa the Executive
Chairman of Kiira Motors Corporation stated in an interview for this article . Prof . Tickodri-Togboa is also of the firm
view that Uganda should not sit back because it doesn’t have a “comparative
advantage” for vehicle production –arguing that such economic theories were
designed to keep the least developed countries backward.
“ We have all that it takes to produce vehicles in
Uganda and Africa . The continent is rich in minerals which should be harnessed to add value by producing
vehicle parts and materials locally ,” he added .
Dr. Musenero is in total agreement
and through her |STI Secretariat –she has decided to take the bull by
the horns and established –one-stop-center to mentor innovators in the
automotive value chain space . The STI
Secretariat is now mobilizing the
informal sector mobility tech-preneurs to guide them on the innovation path
from ideation through prototypes to
commercialization. All these are encouraging signs- that a clear pathway has
been set and there is no turning back for mission vehicles made in Uganda.
Economic Impact
Economists have established from global trends-that building
an indigenous motor vehicle industry provides an unprecedented opportunity for value
addition to the country’s minerals and other natural resources in line with
government’s policy for import substitution and export promotion of motor vehicles,
parts, components and systems.
Globally, it has been established that governments
through their targeted industrialization policies together with the ready
market demand and a skilled workforce play a leading role in the success of the
motor vehicle industry.
Kiira Motors and other players in the industry have
demonstrated that Uganda has the skill set and technical knowhow to produce
vehicles locally, reduce on our import bill for –end of –life vehicles and
mitigate the climate change challenges by adopting E-mobility solutions.
What must be done
urgently
Government through the ministries of Energy and
Mineral Development led by Hon. Ruth Nankabirwa and Permanent Secretary Irene
Batebe and Ministry of Works and Transport led by Gen. Edward Katumba Wamala
should fast-track investments to set up adequate charging infrastructure for electric mobility
in Uganda .
The
writer is Media and Communications Consult
and
Advocate of the High Court of Uganda
msserwanga@gmail.com
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