Automotive industry in Uganda

Out to Lunch

#OutToLunch Embracing electric mobility will reduce the cost of doing business

By Denis Jjuuko Cars may have started as means of transporting people and goods from one place to another. That may still be the case today but how a car looks like and functions matter more than ever. In a world, where car models are released every so often, how they look also matters. A global automotive executive once told me that cars are fashion statements. Besides functionality, people buy cars for almost the same reasons they buy other stuff like clothing, shoes or which hangout to frequent. In Uganda and most of rapidly urbanizing Africa, there are other aspects to consider too. Besides the financing options, the cost of running a vehicle for a day in a clogged city with unbelievable traffic can be enormous. Many people drive with one eye on the fuel gauge and the other on the price boards at fuel stations. A small variation in price, sees motorists thinking of abandoning their trusted brands to stations whose name they can’t recall even after a few times of prompting. As the cost of buying cars and maintaining them skyrockets, the other alternatives like public transport in most of Africa remain challenging. Many young people end up working for transport and remaining with nothing thereby entrenching them into generational poverty. There is no continent that is as urbanizing as Africa today. If we don’t solve transport challenges, we will miss the opportunities that come with urbanization. One way of solving the challenge is by fast tracking processes that can increase electric mobility on the continent. The Uganda Revenue Authority licensing regime is still stuck in expensive internal combustion engine vehicles. There are no clear guidelines on how one can get a license for an electric vehicle. In 2021! There are some companies in Uganda that are trying to turn motorcycles into electric bodabodas, which enable the riders to earn a little bit more income while at the same time protecting the environment. Due to unclear guidelines and/or lack of incentives, they largely have to get the typical motorcycle, remove its engine and replace it with batteries. This makes the motorcycle expensive to acquire although it’s cheaper to operate and increases the rider’s daily incomes. I believe if there was a critical mass of electric bodabodas in the city, the transport rates would go down. Bodabodas aren’t only transporting people, they are playing a critical role in e-commerce. Almost all people doing online businesses in Kampala, somewhat depend on motorcycles to deliver goods and even services such as laboratory blood tests. Electric mobility would significantly reduce the cost of doing business, increase the profitability of these businesses and ensure that we reduce the common statistic of businesses not celebrating their fifth anniversary. Although the numbers are hard to come by, there is an increasing number of especially young people starting online businesses, selling all sorts of stuff. From passion fruits, clothing, and even offering services such as home education and they all largely depend on the bodabodas or motorcycles. Sometimes they don’t make sales though because of transport. To deliver 60 passion fruits worth Shs10,000 from Nateete to Najjeera costs almost the same cost of the passion fruits themselves. A customer who is willing to buy from a certain trader ends up failing to place an order just because the transport cost is too high. The trader’s business then fails to make a sale, which reduces its profitability, leading to eventual collapse. Bodabodas also employ a lot of people. As we talk of electric mobility and as the world abandons internal combustion engines, cars and even bodabodas will increasingly need electronic components such as advanced control units. These components will contribute as much as 50% to the price of the vehicle by 2030. Can the likes of Kiira Motors and all these electric bodaboda companies be buying these units from Uganda instead of importing them? Engineering students at Makerere and other universities can easily make these components. A car is perhaps the most complicated technically advanced consumer good ever made. It is a unit of approximately 30,000 parts. Once many of the components can be made by a country, then almost anything can be made. If one can make a vehicle’s control unit, they would be able to make MRI scans and such other devices. The automotive industry is a catalyst for sustainable manufacturing. And transport is a key business cost, which can be reduced by electrifying it. The writer is a communication and visibility consultant. djjuuko@gmail.com *Kiira Motors’ Kayoola EVS, a fully electric bus.

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Technology and Development Enthusiasts Impressed by Kiira Motors Vehicle Plant

By Sierra Ruth Arinaitwe Kiira Motors Corporation hosted a team of technology and development enthusiasts who experienced the comfort of the luxurious Kayoola Coach during their ride to the Kiira Motors vehicle plant currently undergoing construction at the Jinja Industrial and Business Park. Upon arrival at the plant, they were welcomed by Kiira Motors CEO Paul Isaac Musasizi with whom they had a rich engagement about the automotive industry and its contribution to Uganda’s development agenda. They were taken on a guided tour of the plant. Tusiime Samson, a team leader at Veritas Interactive Uganda said his view of Kiira Motors was always based on a misconception which always clouded his judgment about the corporation. “I had always been skeptical about what Kiira Motors is doing. This trip has been really informative and given me an insight of what is intended to transpire at Kiira Motors vehicle plant,” he said. “I am really impressed by the direction Uganda is taking in the automotive industry and the fact that Uganda has talent to manufacture products like the Kayoola Diesel Coach.” Tusiime further stated that engagements with the Kiira Motors CEO and the visit to the plant informed him about what is on ground, what has always been communicated about Kiira Motors and as well rule out the misconceptions he had about Kiira Motors. Daniel Bwambale, a judicial officer who also works at the Uganda Legal Information Institute said he always had questions whether Kiira Motors was simply “another Ugandan story.” “My main reason for this trip was to prove that there is a plan, if the plan is under implementation and that the plan would come alive and not just die just like many other plans have died out in Uganda,” he said. Bwamble referred to Kiira Motors Corporation as one of Uganda’s good stories that people should be told and with it, he believes that Uganda can do more. Another automotive enthusiast and IT professional engineer with Yo Uganda Ronald Sebuhinja, says his main concern was to get a sense of scale of what Kiira Motors really does. Sebuhinja says it was unclear to him what Kiira Motors is doing when it comes to vehicle manufacturing. “Visiting the plant gave me a clear plan of what is done at Kiira Motors and an idea of what will be done once the construction is complete and is in use.” “I was really impressed by the human resource who have knowledge of whatever transpires here most especially by the speed and execution of work by NEC ( the construction company) who have been able to do such amazing work in a short period of time and am sure they will meet the deadline,” he said. David Birungi, a Public Relations tutor at the University of Nairobi who also works with UMEME said before, he was a bit skeptical as he thought importing cars gave Uganda an advantage over manufacturing here. “After this trip, I have come to understand the Kiira Motors story and this has completely changed my thinking about Uganda’s automotive industry,” he said adding that he looks forwards to coming back to witness how vehicles will be built. Jeremiah Ahumuza Birungi, a 12-year-old pupil at Kampala Parents School who was also the youngest enthusiast said he was looking forward to vehicles made in Uganda. “I am impressed by the progress of the plant. I can’t wait to see how it will look like once its complete,” he said. The first phase of construction of the Kiira Motors vehicle plant is slated to be complete by this. Upon completion, it will be the new home of Kiira Motors Corporation from which it intends to build about 22 cars per day and about 5000 cars per annum.

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