(Jinja) – Uganda’s government is set to invest over $1.74 billion in Kiira Motors over the next four years, aiming to enhance the company’s capacity to produce environmentally friendly vehicles. This substantial investment reflects Uganda’s commitment to advancing its electric mobility sector.
First Deputy Prime Minister Rebecca Kadaga announced this plan during the E-mobility expo held at the Kiira Motors production plant in Jinja. She highlighted that Uganda’s high fuel import bill, exceeding $2 billion annually, underscores the need for this investment. By shifting towards electric vehicles, the government aims to alleviate this significant foreign exchange expenditure.
Kadaga stressed that Uganda is dedicated to achieving a full transition to electric mobility in public transport by 2030. The government is actively supporting this transition through various policies, including reducing production costs, offering financial incentives, and developing necessary infrastructure to promote the adoption of electric vehicles.
The investment in Kiira Motors is projected to create over 500,000 jobs and attain a 65 percent local production rate in the electric vehicle value chain. This shift is expected to contribute to a 25 percent reduction in pollution. Kadaga pointed out that the maintenance costs for electric vehicles are considerably lower, citing the performance of the Kayoola electric buses deployed in 2019. These buses have traveled over 100,000 kilometers in five years without encountering significant technical issues.
Monica Musenero, the Minister for Science, Technology, and Innovation, also addressed the media at the event. She noted that the Kiira Motors plant requires additional funding to reach its production capacity of 2,500 to 5,000 electric buses annually. This increase in production capacity is crucial for meeting the growing demand for electric vehicles and furthering Uganda’s environmental goals.
Are they only producing buses?
How about small cars?