Uganda is investing US$40 million in Phase 1 of a US$263 million vehicle-assembly plant.

Construction of the state-owned Kiira Motors Corp facility began in February. As reported by Bloomberg, annual output is initially envisaged at 5 000 vehicles, reaching 150 000 units with the assembly of buses, trucks, pick-ups and sports utility vehicles. Sedans will be produced on a smaller scale. Kiira Motors has already produced two car prototypes and a solar-powered bus.

According to Kiira Motors CEO Isaac Paul Musasizi, the East African Community region presents a lucrative opportunity as at least 85% of its vehicle imports are used models. And a study by Uganda’s Ministry of Science, Technology and Innovation (which holds a 96% stake in Kiira Motors) forecasts that the combined market for passenger and commercial vehicles in the EAC’s five member nations will double in the next 13 years to almost 630 000 per annum.

Production is expected to begin by mid-2021.

23 July 2019
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