By Moses Sserwanga
Kampala-In yet another major step towards setting up the first and biggest original vehicle plant in Uganda, bids have been invited for the provision of consultancy services for a detailed design and specifications of the Kiira Motors Corporation (KMC) assembly facilities at the Jinja Industrial and Business Park.
Bids have also been invited for the provision of electricity and water, some of the key utility services required at the KMC Vehicle Plant which will be constructed on their 100 acres of land at the Uganda Investment Authority Jinja Industrial and Business Park located on Plot 701, Block 2 Kagogwa village, Mawaito Parish, Kakira Town Council.
These latest developments are set to jump-start Uganda’s nascent automotive industry which is expected to create 856 jobs.
KMC shall also employ automotive industry experts in the fields of engineering, manufacturing, marketing and sales, legal, finance, leadership and management thus tackling the unemployment problem head on.
“Kiira Motors is leading the industrialization, development and transformation of the country ‘s automotive sector. With the production of vehicles made in Uganda, the country is set to benefit enormously in terms of economic growth and national development,” Allan Muhumuza, the company’s Vice President in charge of Sales and Marketing, stated.
Industry experts have indicated that the estimated KMC’s contribution to GDP is $ 247 million. The direct impact of the capital investment in the economy is $13 million resulting into an indirect impact of $ 13 million.
Cars lined up at Assembly plant. Internet photos
The induced effect creates an additional $ 5 million due to increase in purchasing power, this leads to additional business sales in other sectors. The direct household incomes earned from the KMC Plant investment is $ 50,650,206 with the indirect and induced effects of $114 million and $ 50 million.
Kiira Motors Corporation was incorporated as a private company for the automotive manufacturing in Uganda. Jointly owned by the government of Uganda through Uganda Development Corporation (UDC) and Makerere University with 96 per cent and 4 per cent shares respectively, the company was set up with a primary objective of championing automotive manufacturing in Uganda.
And the company’s ultimate objective and mission has always been Vehicles Made in Uganda. It is expected that the company stands to gain a lot from government’s new policy of Buy Uganda Build Uganda (BUBU).
The company last month announced that it was taking bus orders. Several prospective buyers mainly private school owners and tourism companies have expressed interest in the locally made buses that are expected to hit the market next year.