Cabinet approves Kiira EV project, sets aside Shs24bn


Cabinet Sitting on Monday 9th April 2018, at Statehouse Entebbe approved the roadmap for Commercialisation of the Kiira Electric Vehicle Project.

This is to be undertaken in a phased manner with the market-entry point being assembly of vehicles (including electric vehicles) in partnership with reputable vehicle manufacturers.

This should progressively position the Kiira Vehicle Plant for growth prospects in cutting-edge vehicle technology innovation, according to Hon. Dr. Elioda Tumwesigye, Minister of Science, Technology & Innovation.

During the four-year start-up phase (FY2018/19 – 2021/22) with a seed funding of UGX 143.7 Billion, the Kiira Vehicle Plant facilities shall be set up at the UIA Jinja Industrial and Business Park, partnership agreements signed and assembly of vehicles kick-started.

The Ministry of Science, Technology and Innovation shall be responsible for providing policy guidance and oversight for the implementation of the project.

This landmark Cabinet decision builds upon the work started at Makerere University with support from the Presidential Initiative for Science and Technology Innovation to champion value addition in the domestic automotive industry for job creation and diversification of the economy.

The decision was informed by a comprehensive appraisal and approval of the feasibility study for setting up and operating the Kiira Vehicle Plant by the Ministry of Finance, Planning and Economic Development.

The Commercialisation of the Kiira Electric Vehicle Project is expected to catalyse investment by small and medium enterprises in the manufacture of vehicle parts, components and autonomy systems (Brake pads, seats, bolts and nuts, bumpers, vehicle electronics, navigation system, among others); increase demand for the utilization of natural resources such as steel from iron ore deposits (260 Million Metric Tons); plastics from oil and gas, lithium ion batteries from graphite, lithium and cobalt deposits, vehicle upholstery and interior padding from cotton and leather, glass from silica and sand among others; and contribute to employment with over 940 jobs estimated from the Start-Up Investment.

The full-scale plant operation is estimated to create over 2,000 direct jobs and 12,000 indirect jobs.

ICT minister Frank Tumwebaze said this year, the Ministry of Finance has put over Shs24 billion aside to promote it.


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