Uganda could be the latest in the list of East African countries to start assembling new vehicles by June 2022, with an initial production capacity of 5,000 units per year. This is according to a top Kiira Motors Corporation (KMC) state-owned official.
Other East African countries, including Rwanda and Kenya, are already developing national automotive industries at different phases to satisfy increasing demand for new cars.
German carmaker Volkswagen (VOWG p. DE) opened Rwanda’s first locally assembled vehicle at its new plant in Kigali last year, with Europe’s largest carmaker hoping to tap into the anticipated ride-sharing demand growth in the region.
In an interview, KMC Chief Executive Paul Isaac Musasizi said the company began building the first stage of its manufacturing facility in Jinja, east Uganda earlier this year.
” The plan is to have the initial phase completed and commissioned by end of June 2022, we should be in the market with our product by then,” he said.
The Ugandan government has provided $40 million to fund the operations of the firm until June 2022 beyond which KMC plans to sell stakes to private equity investors to raise additional funds for further expansion financing.
To satisfy the demand for passenger transport, KMC will begin producing buses of different dimensions. The firm ultimately hopes to expand into truck manufacturing.
