Kiira Motors – Prime Time Communications

Out to Lunch

OutToLunch: China Town: Protectionism and partnerships critical for African economies

OutToLunch: China Town: Protectionism and partnerships critical for African economies By Denis Jjuuko China Town, a retail shop, in Lugogo without placing a single advert became the talk of town providing invaluable lessons for advertising and marketing executives. Shoppers looking for bargain deals claimed to have queued up from morning and left when the shop closed without having even stepped into the store. In March 2023, I wrote about China Square in Nairobi that was giving Kenyan traders sleepless nights while making consumers happy. Obviously, we may not have paid attention as a country until a company with a similar name showed up. I have heard that they are similar China something everywhere on the continent, selling stuff at laughable prices. At 1.4 billion people, Africa has a huge population that needs goods and services and even though it is the poorest continent, the volumes businesses can push cannot be entirely ignored. That is why retailers like China Town, China Square, China Mall and a plethora of others are here. Their model is the same—lower prices than elsewhere. I hope that they are selling high quality goods that have passed the tests of Uganda National Bureau of Standards (UNBS). Many traders are worried that their business models are being disrupted and their enterprises will collapse. They claim that they can’t compete anymore. That could be true. The Chinese are probably enjoying incentives from their home governments. The more products sold in consumer markets; the more days factories remain open in the producer markets. The more days factories remain open, the more people remain employed. The more taxes governments in producer markets earn. And the entire value chain is huge. Of course, these shops may not always sell imported products. Some may be locally made. The owners of such shops may approach manufacturers and sign contracts that give them lots of stuff in bulk at low rates. If a manufacturer is guaranteed a market at a certain price, they can be able to supply and remain in business. With better experiences, technologies, capital, systems and structures, these retailers may become very hard for local businesses to compete. So what countries usually do is that they decide to protect their businesses. The Americans have imposed high taxes on electric vehicles not made in the US because they know that Chinese automakers would make the likes of Tesla collapse or see a significant chunk of their revenue shrink. They have also imposed bans on some Chinese smartphones like Huawei. They have been toying with the idea of banning TikTok, the popular addictive video streaming app. The Chinese also banned American apps, which enabled their messaging apps like WeChat and Weibo become so big in China. The Europeans do the same. They have provided huge subsidies for their agricultural sector. In France, if you own a cow, you get an annual subsidy of EUR280 (Shs1.16m) annually. If you add in subsidies on land and other incentives, the farmer is in business. That also means that a farmer elsewhere can’t easily penetrate that market. There are also restrictions on importing beef and dairy products. In Africa, South Africa has some of the continent’s biggest assembling plants for cars. To protect them, South Africa doesn’t allow the importation of vehicles at their end of life from Japan or elsewhere. In fact, they don’t allow you to import any used vehicles. You can only import a brand new car which is not made in South Africa. Basically, you can only import Ferraris, Lamborghinis, Rolls Royces and such other luxury brands. They impose hefty import duties on them as well. They know that if they allow anyone to import any car they want, the auto industry will die. Uganda needs to put in place some protection policies and implement them. If Kiira Motors is making buses in Jinja, then they should not allow the importation of buses from anywhere else. You either buy the bus made in Uganda or forget about it. If there are people making household electronics in Kampala’s industrial area or Kapeeka, then others should not be imported. That way the guy who set up his plant can keep their factory open. Of course, UNBS would have to double down on its quality inspection protocols so that they ensure that only products of highest standards are made and supplied. Government would have to nip corruption in the bud for this to take place. However, in a globalized world, foreign investment cannot be fully eliminated especially in poor and transitioning economies. Global retailers and businesses would have to set up shop. Ensure that these global businesses are in partnership with local entrepreneurs that way they can learn a thing or two and will remain even if the foreigner decides to go. There will also be some capital that won’t be evacuated. The writer is a communication and visibility consultant. djjuuko@gmail.com

September 18, 2024

News

Kiira Motors Announces Uganda’s First e-Mobility Expo

PRESS STATEMENT Kiira Motors Announces Uganda’s First e-Mobility Expo 31st July 2024 – Kiira Motors Corporation (KMC) has today announced Uganda’s first e-Mobility Expo and Kiira Vehicle Plant (KVP Open House– which is taking place on Friday 16th August 2024 at the Kiira Vehicle Plant in Jinja from 12:00 pm to 10:00 pm. Held under the theme The Future is Green; The Future is Now, the first-of-its-kind event is designed to explore, showcase, and encourage the adoption of electric mobility solutions in Uganda. The Kiira Vehicle Open House and e-Mobility Expo 2024 will gather over 200 industry leaders, potential customer, suppliers, policymakers, investors, innovators, and the public to discuss Uganda’s readiness to adapt to the e-mobility revolution – all towards positioning the nation as a net source of e-mobility solutions in Africa. During a media roundtable held on the all-electric city bus the Kayoola EVS Model 2024, Mr. Paul Isaac Musasizi, the Chief Executive Officer of Kiira Motors Corporation, said, “This expo marks a significant milestone in Uganda’s journey towards embracing electric mobility which offers immense potential for reducing the nation’s carbon footprint and creating new economic opportunities while fostering innovation. We are proud to host this inaugural event and showcase the innovations that will shape the future of mobility in our country.” The expo will feature a series of fireside conversations drawing content experts in the fields of e-financing, carbon trading, energy and e-mobility infrastructure development, and more. Uganda in the recently concluded census recorded a population of 45.9 million people. Thanks to increased urbanisation, the mobility needs of this population have resulted in vehicular emissions which are the leading cause of Kampala’s increased air pollution readings from a dangerous annual averaging at 39.5 micrograms of pollutant matter in each cubic metre in 2019 increasing to 41 micrograms per cubic metre in 2024. This is eight times higher than the 5 micrograms per cubic meter that the World Health Organization defines as the safe limit for air pollution- negatively affecting the health and well-being of citizens epically in the urban centres making the case for e-mobility solutions which also serve to improve the national energy equation considering that with fossil fuels today we import both the energy ~ USD 2Bn annually and the vehicles ~ USD 730 M annually. Allan Muhumuza, the Team Leader of the Mobility Bureau in the Secretariat of Science and Technology in the Office of the President, said, “With a vision to see Uganda transition to e-mobility in public mass transport, motorcycles, and passenger vehicles, the Government is implementing the National e-Mobility Strategy – which looks to build an efficient and self-sustaining ecosystem. This event is a bold step towards further bringing together all the relevant players towards seeing this vision come to life to combat climate change and enhance the quality of life for our citizens.” The expo will draw exhibitors with a wide range of products and services including Innovex, Nexus Green, Green Hub, Karaa, KaCyber Securities Ltd., GoGo and many more. The Open House provides an opportunity to participants tour the state-of-the-art Kiira Vehicle Plant. The Kiira Vehicle Plant has an installed capacity of 2,500 vehicles per annum. This will be tooled up to 5,000 vehicles per annum in the medium term positioning Uganda as a net source of Mobility Solutions in Africa. ENDS

July 31, 2024

Out to Lunch

The industry of bolts and nuts and what small businesses can make on a car

By Denis Jjuuko In one of the dingy alleys of Nakasero at hitherto Kampala’s major hardware market area existed a very tiny shop that seemed to attract lots of customers. The customers, largely contractors would come with a piece of metal that they showed to the lady owner. The customers wanted the exact same part. Many times, the seller didn’t know where the part was. She was sure she had it but she didn’t know where to find it. However, she knew how to find it. This meant emptying her sacks or baskets on the ground floor and start going through hundreds of pieces of metal to find the part. As more customers came over, she would task the buyer to carefully look for what he was looking for as she attended to another customer. It was tedious but her customers never complained. They knew the modus operandi and most importantly they were sure they would find what they were looking for. The shop owner used to go to Dubai, Japan and such other places to source her wares. Most of them were old stuff, discarded from motor vehicles, towers, and machinery. Here people would use her wares as replacement parts in vehicles and even factories, construction and fixing whatever needed fixing. The materials she was selling aren’t unique at all. Simply, bolts and nuts. Yes, different sizes of bolts and nuts. As her business boomed and she became the reference point for bolts and nuts in Kampala, other people started similar shops in Shauri Yako and Kisekka markets. I don’t know whether her tiny shop still exists but there are many other shops today that sell bolts and nuts. They are usually in high demand as replacement parts for vehicles and factories, construction and for fixing lots of things. The funny thing is that the last time I checked, there was no factory making bolts and nuts in Uganda. I was once directed to one in Namanve industrial area. The warehouse was well decorated with all sorts of bolts and nuts and other materials that form the fastening industry. I realized the warehouse was a store and wholesale selling point. The owner was simply importing them from China and India. Though of course, my research may not have been thorough and was done several years ago. There could be guys making them today. I have googled several times how bolts and nuts are made and saw several videos from India and China. There was nothing sophisticated about making a bolt or nut. Largely, it involved an iron or steel bar that fed into a machine that sized it, created threads and the shape at the top. Nothing special to be honest. This story came to mind over the weekend when Kiira Motors announced that it had made eight electric buses from its temporary premises at Luweero Industries in the precinct of the UPDF barracks in Nakasongola. Like every time Kiira Motors makes such an announcement, the story that trends on social media is whether the parts were made in Uganda or not, followed by the argument that we cannot make things. But nobody manufactures a car in its entirety. It is small parts made by so many players that are put together to make a car. Same way a 5-star hotel makes a buffet. They get ingredients for the buffet from several suppliers who also get them from several farmers. It is called a value chain. Anyway, most motor vehicles have more than 30,000 parts. Buses, sometimes have as many as 70,000 parts. Many of them have to be fixed together using bolts and nuts. If our argument is that we can’t make a car, why then can’t we at least make bolts and nuts? It isn’t just bolts and nuts that we can make. There are many things that we can make on a vehicle that don’t require significant investment. Individuals asking what are we making on a vehicle can easily invest some little money in such areas — same amount they invest in a plot of land that remains idle and bringing no income in places like Kira (no pun intended). The beauty of car parts is that the majority can be used in other sectors. For example, we can make car seats but if you can make car seats, you can also make seats for technical benches at stadiums (Hoima stadium is coming up), dental clinic chairs, waiting room/reception chairs and basically any upholstering. We already have an industry here in Kisenyi where taxi seats are made. We simply need to deploy slightly better technologies. Fiber parts like face and rear. If you can make translucent sheets used for roofing shades and pergolas, you can make car fenders and bumpers. Brackets are used a lot to attach a range of car systems. All one needs is a bender and cutter to turn iron bars into such parts. Anyone making stainless steel balconies can make bus hand holds and cabin rails. Internal aluminum moldings should not be so difficult either. Cars are very sophisticated as a finished unit but many parts that make a car are not that sophisticated to make. And like I said earlier, most of these parts can be used in all sorts of industries and sectors. Instead of spending our bandwidth on the argument that we cannot make a car, what about, as small businesses, we started with those basic parts like bolts and nuts? The writer is a communication and visibility consultant. djjuuko@gmail.com

July 2, 2024

Automotive Industry

Kiira Motors unveils the 2024 8-Meter Kayoola EVS Model

6th June 2024 – Kiira Motors Corporation today delivered a batch of eight (8) 8-Meter Kayoola EVS buses produced at Luweero Industries Limited in Nakasongola to the Kiira Vehicle Plant in Jinja, bringing the total stock of Electric Buses produced in Uganda to fifteen (15). This has signalled Kiira Motors’ readiness for delivering bespoke electric mass transit solutions for the African market. The 2024 8-Meter Kayoola EVS is a fully electric city bus with a nominal range of 200 kilometres on a full charger and capacity of 56 passengers. It forms the latest offering from Kiira Motors’ rich portfolio of state-of-the-art Ugandan-made buses. The bus is built to offer the utmost comfort and convenience with features like infotainment systems, CCTV cameras, E-Ticketing & Cashless Payment Systems, Wi-Fi, inclusive design for the elderly and persons with disabilities, USB charging, ample carrying capacity, and the highest quality and safety standards. The convoy of 8 buses caused a stir as they weaved through traffic from Luwero to Kawempe, across the Northern Bypass for a brief stopover at the Kisaasi roundabout before proceeding to Bweyogerere and finally to Jinja covering a distance of 236 kilometres. Hon. Prof. Sandy Stevens Tickodri-Togboa, Kiira Motors’ Executive Chairman, said, “Uganda’s push towards becoming a net source of e-Mobility Solutions in Africa is steadily getting closer and we are proud to be contributing to this agenda. This progress has been made possible by the strategic partnership we have fostered with National Enterprise Corporation and its Luwero Industries Limited subsidiary.” He added that following World Environment Day – which is celebrated internationally on the 5th of June every year – and with the knowledge that Kampala’s air is nine times more polluted than the World Health Organisation (WHO)’s recommended limit[1] – more Ugandan public and private sector players need to embrace environmentally sustainable means of mass transit for the good of the environment with solutions that offer quality and value for money like the Kiira Motors portfolio of products. The company is also looking to mainstream the deployment and distribution of its fast-charging infrastructure to cater to its customers and other Ugandans who have embraced the electric vehicle transition. Eng. Ian John Kavuma, Kiira Motors’ Quality Inspection and Testing Manager added, “We are in the process of onboarding several partners with whom we shall work to ensure that a robust charging network is established across the country in line with the National E-Mobility Strategy for a seamless electric vehicle ownership experience.” Kiira Motors offers fast-chargers ranging between 60kW and 360kW. The 2024 Kayoola EVS comes in the following variations: 18-meter EV with capacity of 120 passengers; 12-meter EVS with capacity of 90 passengers; 10-meter EVS with capacity of 70 passengers, and 8-meter EVS with capacity of 56 passengers. ENDS For orders, go to: https://bit.ly/kmcproducts For any inquiries, send an email to: sales@kiiramotors.com | info@kiiramotors.com [1] https://globalpressjournal.com/africa/uganda/trouble-breathing-kampala-quite-likely-air/

June 7, 2024

Out to Lunch

OutToLunch: Electric mobility as a new year business option

By Denis Jjuuko One of the most trending videos last year was of a bus driver recorded having a meal while driving. He wasn’t snacking, picking on a crisp or something. He had his plate full from which he would pick some African food while driving. At one stage, he even sipped some soup direct from the plate. On seeing the video, police as usual reacted and had him arrested. Another driver was recorded WhatsApping while driving a busload of passengers. One would expect that bus drivers pay the utmost attention given the number of people on board. In most cases, they are the worst. They drive at high speeds beyond the 80kph that they emboss at the back of their buses, overtake in blind spots, or simply overtake and other road users must find their way or else a head on collusion. They install train horns in their vehicles that they sound with reckless abandon. They don’t care if they make you deaf in the process, as long as they have sounded the horn as if their lives entirely depend on it. Most times, the buses are rickety with broken centre bolts that make it impossible to move in a straight line. If you want to see impunity on the road, follow a bus on a highway. One of the major reasons they drive that way is because many haven’t received proper bus driving training. They are easily moved from lorries or even taxis to buses. Some start as cargo loaders and along the way start learning to drive. In a few years, they are bus drivers. Most bus drivers are paid per a trip so drivers consider sitting down for a meal or driving at the recommended kilometre per hour a wastage of time. The more trips they make, the more money they earn in a day, week or month. The more money a bus owner makes. I have though never understood why a businessman would spend Shs700 million or more on a bus and then hand it to the most incompetent driver ever or one who wouldn’t care about how the bus is driven. If bus owners don’t value human life, at least they should look at their investments. Many of these buses don’t have comprehensive insurance so once they are involved in an accident, that is the end of it. No compensation. That could explain why many bus companies struggle to stay in business for decades. So, I was impressed on a recent visit to Nakasongola where I met bus drivers undergoing skilling by Kiira Motors. Even though the program being implemented by Kiira is updating drivers with the skills they need to drive electric buses, it is also focusing on customer care and experience, traffic rules and regulations, routine service maintenance and repair as well as handling and operation of equipment including electric charging. If they can skill a big pool of bus drivers including those who drive internal combustion engine buses, the better for the country. Passengers eventually won’t be driven from one part of Uganda to another like bales of used clothing. But this work can’t be left to one entity and its parent ministry. Bus and taxi drivers must be equipped with regular skills they need to do a job that puts the lives of the passengers and other road users first. Not just thinking of how many trips they can make a day. Bus owners must be aligned to this necessity as well. Of course, it isn’t just bus and taxi drivers that require refresher driving courses. Many ‘my cars’ drive recklessly and don’t even know basic traffic rules and regulations. Once they have made some money, they buy a car and next day, they are driving for Christmas to the village to show it off to their relatives. Many arrive by sheer luck. Beyond the case for driving, last year saw an increase in the number of electric vehicles in Uganda albeit with nearly all of them in Kampala. Some corporate bodies, NGOs and diplomatic missions accredited to Uganda started electrifying their fleets. This heralds a new era of electric mobility. Sooner than later, there will be lots of electric vehicles without the skills to drive and maintain them. The opportunities for electric vehicles are massive and there is a lot for the private sector to play. We shouldn’t just wait when the vehicles are all over the city and then try to catch up. It isn’t just cars by the way. Some entrepreneurs have been converting boda bodas from petrol engines to rechargeable batteries. Since there are more boda bodas than cars in Uganda, that sector also has a lot of potential—from charging infrastructure, skilling, to maintenance. If you are reflecting on what to do in the new year, electric mobility is one option. The writer is a communication and visibility consultant. djjuuko@gmail.com

January 10, 2024

Out to Lunch

#OutToLunch: Government can replicate model of commercial banks

By Denis Jjuuko Uganda’s commercial banks have over the last few days been releasing their annual results, some registering record profits. One of them led the pack with an annual after-tax profit of US$100 million! It must be great time to be a banker! But then if you’re an ardent reader of Ugandan newspapers, you will notice that some dailies carry at least two pages of properties and assets being advertised on forced sale by auctioneers working for the same banks. On Facebook and Instagram, once you get your way past Ugandan authority access restrictions, you will notice many properties are on sale, coerce-fully. In many suburbs, many properties have been, in the boldest of letters, an declared bank properties and are up for sale. Of course, policy makers argued that government had no business running banks and that banking wasn’t profitable so we quickly sold them off for a song. Just like other industries. The private players who bought them simply reorganized them — sold off the fat such as properties and remained with the lean meat. They became a little bit more efficient, cutting off government fat cats and their relatives that were getting loans and not paying them back. Perhaps, that explains the number of properties that are being advertised for failure to pay back. Nobody should begrudge banks for being able to turn a profit. Like all commercial enterprises, they are in it for profit. Having seen what is possible, government is arguing that they made mistakes and they want to put their right foot back in. I must commend them for seeing the light though they would need to still use the same efficiency or better that commercial banks have deployed that have enabled them to become so successful. And the talk that they want to get back in must end so that we see action. However, they should do more than commercial banks. Since they will be using public money to set up, how can they provide affordable loans so businesses can thrive? The most common way of lending in Uganda is through providing a property as security that is higher in value than the loan amount being advanced. This model ensures that people will do everything to pay back so that they don’t lose their valuable assets. This model doesn’t necessarily put into account the actual situation young entrepreneurs face. Young people and even women rarely have assets to mortgage so they are naturally excluded from accessing capital. They are beaming with ideas and have the energy to work but don’t have the means that can lead them to access capital. Banks also know that it is a high risk to lend in Uganda so the rates are naturally high. They also spend a lot of time trying to avoid lending the money (they make more by lending to government where the risk of non-payment is low). So if private banks are making hundreds of millions of dollars, a government commercial bank can also make that money but invest it in its people affordably. Also, government can invest in sectors where commercial banks may not want to do so. Take an example of Kampala. I don’t think there is any proper city anywhere in the world where the major vehicular form of public transport is a matatu — a 14-seat passenger vehicle (that was previously a cargo van in Japan). Cities use bus transport that can carry at least 90 people. Of course, trains, trams and other means of public transport help to ensure that people move easily. A few private players have tried to introduce buses in Kampala. City, Pioneer, Awakula Ennume and now Tondeka. Kalita has been operating electric buses from Kiira Motors on the northern bypass. Kampala is one of the first cities on the continent to have public fully electric buses but they are just too few and only operating on one part of the city. The cost of an electric bus is higher than a diesel or internal combustion engine (ICE) bus of the same size. That perhaps explains why Tondeka is operating ICE buses. If they approached a commercial bank to lend them money, the bank manager would have the experience of Pioneer and City at the back of their mind. With Pioneer buses being eaten by termites around Namboole, a bank manager would think that public transport is not profitable and then stay away. Yet if you want to develop a country, you have to ensure that its population’s cost of living is low or affordable. It is the same issue farmers face. The rains are here. Can they afford inputs? Agriculture which is touted as the sector that can get Africa out of poverty is left to subsistence farmers, whose activities cannot meaningfully change their fortunes. That is why we cry to Ukraine, a country at war, to continue supplying us food when we are largely peaceful and rains dropping from the sky with reckless abandon. The writer is a communication and visibility consultant. djjuuko@gmail.com

June 19, 2023

Out to Lunch

#OutToLunch Protecting electricity infrastructure is a national security issue

#OutToLunch Protecting electricity infrastructure is a national security issue By Denis Jjuuko A friend always prefers to support small businesses in his neighborhood near Kampala. He shops from the small shops and kiosks. Many times, he patronizes the small bar near his home. When a somewhat modern salon opened up in his neighborhood, he ditched the guys who had cut his hair for more than 10 years. So recently, as they were cutting his hair, electricity like it is becoming a norm these days, went off. He remained in his reclining chair for a while thinking that they are going to switch to a generator. He saw the barber unbothered and busy on his phone. When asked what was going on, the barber said they were waiting for the electricity to ‘return’ so they could continue working on him. The generator, the barber told him, had ‘died’ and the boss hadn’t repaired or replaced it. My friend has decided, in the meantime, to return to the barber he had abandoned in the name of supporting neighborhood small businesses. That is one loyal customer lost. His animated narration of this episode reminded me of the 1990s and noughties when load shedding in urban areas was the order of the day. The issue at the time was lack of electricity. We didn’t generate that much yet the demand was growing. The government and indeed the private sector spared no effort in addressing this challenge, investing significantly to generate 1,346 megawatts by 2021 according to the Electricity Regulatory Authority (ERA). And that is before Karuma with an estimated 600MW comes on line. Some sources say that of the 1,346MW we generate, the country only takes 800MW so electricity at the moment shouldn’t be a problem but it is. Of recent, we have seen increased vandalism of the towers through which bulk electricity is supplied to stations from which it further reaches the final consumer. The now consistent loadshedding or power failure isn’t blamed on insufficient electricity but vandalism of these high voltage lines. Small businesses are now not sure whether they will keep customers. Costs of running generators are so high. A small salon will need to invest in buying a generator and then fuel. The salon my friend was going to charged Shs8,000 for his haircut. If they run a generator for 30 minutes to cut his hair, how much money will they make off his head to be able to pay workers, rent and all the stuff required to run his operation? It won’t be much and if many people are running away from him, he will simply close. The few young people he employs will be back on the unemployment street. The municipality will miss revenue in form of a trading license, the property owner will lose a customer and eventually Uganda won’t be making money in form of taxes. The economy already strained by runaway inflation and effects of Covid-19 and Ebola pandemics will simply not be able to survive. Investors who want to set up large businesses that could employ many people will think twice as they keep an eye on their operation costs. If a business owner is going to operate a 100kva generator a few times a week, he may think of investing elsewhere so he doesn’t have to incur excessive costs in running his business. Uganda has put a lot of emphasis in kickstarting its automotive industry, a sector that is now in transition to electric vehicles. Electric vehicles use batteries which are charged by electricity. Some countries in Europe have even provided roadmaps to phase out internal combustion engine vehicles. In Kampala, boda bodas are increasingly switching to electric motorcycles. Already, electric buses are providing public services on the Kampala Northern Bypass and Uganda Airlines has electric buses too just like many hotels which are using electric golf carts in their operations. Kiira Motors’ vehicle plant in Jinja is nearing completion and installation of assembly lines is said to commence soon. Unreliable power distribution will push back these small achievements. Protecting our electricity supply and distribution lines can’t be the sole responsibility of the Ministry of Energy and Mineral Development. Protecting these installations should now be considered a national security issue. Our intelligence services need to show what they are made of by ensuring that they stop the people vandalizing high voltage lines before they even get near to the electric towers and poles. The writer is a communication and visibility consultant. djjuuko@gmail.com

January 10, 2023

Out to Lunch

#OutToLunch KCCA’s golden opportunity to create a taxi park free city

#OutToLunch KCCA’s golden opportunity to create a taxi park free city By Denis Jjuuko Kampala has two main taxi parks — the old one and the new one. They are just a few metres apart in downtown Kampala. Many taxis start their journeys from there either to Kampala’s expanding suburbs or to upcountry. But there are also many that start their journeys on stages in different parts of Kampala. Others simply keep moving picking passengers along the way. Both taxi parks can actually be a tourist attraction — if anyone can market congestion. Some people who own some plots of land where one of the taxi parks is located are demanding compensation of more than Shs300 billion without which taxis must find another place to park and wait for customers. However, the expansion of Kampala has created some additional small taxi parks in places like Nakawa and Nateete. When taxi parks were first created, they could have made a lot of sense. The two taxi parks sandwiched a bus park. Buses would bring in people from upcountry and the 14 seat taxis would pick them to their final destination in the suburbs. Eventually, those who didn’t want to wait for too long for buses to fill opted for the 14 seat taxis or the 5-seat Peugeot 504 for those going to Masaka. The bus park in Kampala is no longer centralized. There are a few bus parks from different locations still not far from downtown Kampala but not as close they originally were to both the new and old taxi park. Actually, one like Namayuba is a distance from the old taxi park. So do we still need to spend more than Shs300 billion to pay off landlords to have a taxi park in downtown Kampala? There are many options that the Kampala Capital City Authority (KCCA) could do with their Shs300 billion kitty. It could decide to work on roads – replace aging paved roads, expanding others, build new ones or install traffic lights in some. Kampala residents give their land free of charge for KCCA to build roads thereby reducing the cost of building new roads. So with Shs300 billion, KCCA can build a minimum of 120 kilometres of bitumen standard roads in Kampala. I shudder to imagine what Kampala would look like if in one or two years, 120km of roads were constructed. Kampala is such a small city so this would be massive. By just constructing new roads or maintaining others, small and medium enterprises would be set up employing many people. KCCA would make more money in trading licenses and property taxes. The economy would significantly grow. The construction of these roads alone would increase revenues of the contractors but most importantly a good number of people would get jobs. The Uganda Revenue Authority would collect more taxes. Many countries fix infrastructure to create new jobs and grow their economies. But also by actually not having taxi parks in the city and promote the replacement of 14 seat taxis with buses that carry at least 90 people would reduce the congestion in Kampala. Politicians need to stop fearing to replace taxis. Taxi owners can actually afford buses. Many of these owners own a few taxis which if they are sold, they can afford buses. Taxi owners and operators have saccos that have billions of money which they can use to buy buses. The government owns the majority shares in Kiira Motors so they can work with organized taxi associations and transport companies to get buses on favourable terms. The government can easily discount Kiira’s buses so these people can own the buses. Also, imagine if KCCA instead of paying off landlords they went and deposited this money for buses and tasked those who want to get buses to pick them and pay back in a few years with a little interest? They could partner with a bank to manage this buses-for-Kampala-fund. The other alternative for KCCA would be to use this money to create bus lanes in some parts of Kampala. You can easily stop people from driving into Kampala by turning parking lanes on the roads into bus lanes. Many of us would gladly leave our cars somewhere and jump into faster buses to the city. Like we have seen with bus parks that are private, business people can set up taxi parks if they wanted. So let us do the right thing and end the existence of taxi parks in Kampala and solve the congestion in the city. The writer is a communication and visibility consultant. djjuuko@gmail.com

March 14, 2022

News

Ministers urge private sector to invest in making parts for the automotive industry

By Sierra Ruth Arinaitwe Kiira Motors Corporation, a government of Uganda and Makerere University initiative has taken concrete steps in the development of an indigenous motor vehicle industry with the near completion of the Kiira Vehicle Plant in Jinja. The Minister of Science, Technology and Innovation, Dr Elioda Tumwesigye, hailed the progress Kiira Motors has made so far saying it will provide an unprecedented opportunity for promoting value addition to Uganda’s minerals and other natural resources with the view of import substitution and export promotion of vehicles, parts, components and systems as well as automotive engineering services. “Import substitution is something we need to work on. Uganda motor vehicles are the second leading valued import with over USD 450 Million annually after petroleum at USD 1.3 Billion. Imagine if we made these vehicles here?” Dr. Tumwesigye noted. Dr Tumwesigye made the remarks while opening a multi-sector meeting on building of an indigenous motor vehicle industry at Kiira Motors’ vehicle plant construction site in Jinja. The meeting was presided over by Joy Kabatsi, the State Minister for Transport who represented her boss, Minister of Works and Transport, Gen Edward Katumba Wamala. Prof Nawangwe, the Makerere University Vice Chancellor and Edward Hightower, a global automotive engineer and executive also attended the meeting. Dr Tumwesigye explained that with the market for vehicles growing at 12% year to year and estimated to reach over 630,000 vehicles sold in the East African Community annually, it is of paramount importance that Uganda puts in place the relevant policy interventions for promoting automotive local content participation while placing emphasis of enhance environmental stewardship. “Invest in the automobile industry. Form companies that make parts, we can make these parts from our raw materials so that 70% of vehicle parts are done by independent suppliers. If you don’t invest, we will get the parts from elsewhere,” he advised. The minister further added that strategic government investment in the Kiira Vehicle Plant is expected to create over 14,000 jobs directly and indirectly; catalyze upstream investment in the manufacture of auto-parts from bamboo, steel, banana fiber, etc.; while affirming Uganda’s commitment to enhancement of local content participation as an enabler for industrialization along with enhanced environmental stewardship. On her part, Minister Kabatsi said that Uganda believes that the automotive industry is a catalyst for industrial development. “The government will continue to support your efforts to create an indigenous automotive industry. I will continue to support your development,” she pledged. She too urged the private sector to get involved in the local content value chain by making parts.

February 23, 2021

News

Kiira Motors Set to Produce 1,000 Buses in Uganda

Kiira Motors Corporation is working with reputable strategic partners to produce 30,000 Buses for the regional market, with 65% parts and components localized by 2030. This builds on the successful development of the Kayoola Electric and Diesel Buses built through technology transfer and utilizing the facilities and resources at the UPDF National Enterprise Corporation Luweero Industries in Nakasongola. Kiira Motors and the partners plan to produce and deploy 1,030 Buses by end of 2021, 50 of which will be electric. The initiative is aimed at modernizing public transport in the urban centers in Uganda and beyond, while building the indigenous motor vehicle industry through technology transfer and localization of auto parts manufacturing. Kampala and other Cities in the region have for decades faced challenges of road and traffic congestion, pollution, unemployment and under employment resulting into low fuel economy, poor air quality, low labour productivity, and compromised road safety. This calls for establishment of a robust integrated and inclusive mass transport system based on environmentally friendly transport solutions. Coupled with localization of capabilities to develop, make and sell vehicles and components, this provides an unprecedented opportunity for transforming the economy drawing on the demographic dividend of Uganda. The establishment of Mass Transit Bus Systems supported by the domestic manufacturing of buses and components for the regional market is consistent with Uganda’s aspirations and pathways to Vision 2040 outlined in the National Development Plan III and the NRM Manifesto 2021 – 2026. Specifically, (1) promotion of local manufacturing of motor vehicles; (2) establishment of an efficient, integrated, sustainable, safe and inclusive public transport system; and (3) promotion of environmentally friendly transport solutions. The above developments are projected to create over 30,000 jobs directly, 100,000 job indirectly, and catalyze investments by Micro Small and Medium Enterprise in the manufacture of motor vehicle parts. The strategic and long-term focus on electric buses for the cities further demonstrates Uganda’s commitment to enhance environmental stewardship.

February 15, 2021

News

#OutToLunch Make MPs’ cars here to create a real manufacturing sector

By Denis Jjuuko One of the perks of winning an election for a Member of Parliament in Uganda is the amount of money deposited into their bank account before even work starts. To now fit into the honourable position of MP, the government gives them cash for a brand new car to facilitate their movement within the constituency and comfortably travel to Kampala, the seat of the national legislature. Because everything takes place in Kampala and some constituencies are incredibly remote, there shouldn’t be qualms with MPs get facilitated with a car that befits their status. After all, many people who don’t debate issues for the country get vehicles as well. The Minister of Finance has announced that he is looking for a whopping Shs165 billion (approximately USD44.9 million) for this. Media houses made simple calculations to mean that each MP will be receiving Shs320 million (app USD87,000). That is enough money for a brand new SUV although most MPs buy 16-year-old cars at a fraction of the money they receive. Many don’t even bother to buy a vehicle preferring to use public means between Kampala and their constituencies to save. One of the challenges the country is facing is youth unemployment. Uganda has one of the fastest-growing populations globally, with many people joining the labour market every year and unable to find work. The newly elected MPs know this very well because many campaigned on the platform of development, which in my understanding should mean creating jobs. They also saw first hand how poverty is ravaging the country as they moved from one village to another looking for votes. Many MPs will be receiving daily phone calls from constituents asking them to help connect their unemployed graduate children to jobs. Others will simply ask them to give them money. One of the newly elected MPs was seen with a 40-foot container during campaigns distributing knickers and sanitary pads. And this was in an area many people consider to be well off. If people don’t have one US dollar to buy a pack of sanitary pads (reusable ones are much cheaper), what else can’t they buy? Yet the Shs165 billion can create millions of jobs in the long run. Vehicles are the second-highest value imported goods after petroleum products in Uganda. They come in as fully built units (FBUs). This means that Uganda loses millions of dollars in foreign exchange each year importing vehicles. What about the government asking Original Equipment Manufacturers (OEMs) to make MPs’ cars here? The government would place an advert asking for somebody to supply SUVs to Uganda MPs with the condition that the vehicles would be made in the country. The winning OEM would bring in the car as either semi knockdown kits (SKDs) or completely knockdown kits (CKDs) and get a place to put the cars together. The government’s own Kiira Motors is nearing the completion of a vehicle plant in Jinja. The winning OEM could make the car from there. This would directly create many jobs by people making cars for the MPs, but most importantly, the country would create a significant mass of people with skills to make a car. Entrepreneurs would identify parts that they could easily make so that the OEMs don’t necessarily import everything. Plastic companies like Mukwano Group and Mulwana Group would easily make plastic parts. Steel companies would learn how to make the chassis. A car has on average 30,000 parts which are mainly supplied to OEMs by small independent suppliers. Within a few years, Uganda would develop an automotive industry that supplies parts to the global value chain on top of making cars here. We have most of the raw materials here. The government of Uganda, on average, buys approximately 2,000 vehicles every year. The private and development sectors buy more others. Imagine if they were made here. The UPDF makes some of its armed personnel carriers (APCs) here in Uganda. So if the army can make some of its vehicles here, why can’t we make cars for MPs and other institutions? The OEMs will partner with local entrepreneurs to develop our capacity same way Suzuki partnered with Maruti to create the iconic award-winning Maruti Suzuki in India. For the industry to kick off, this would also call for banning the importation of these old cars that are destroying our environment. Because there are many parts in a car, the parts suppliers that will set up here will make other things. Once a country can make a car, it can make anything. Make MPs cars here, and you would have a real manufacturing sector making all sorts of products in a few years. The writer is a communication and visibility consultant. djjuuko@gmail.com

February 11, 2021

News

#OutToLunch Kiira Motors shouldn’t be selfish with Edward Hightower

By Denis Jjuuko An interesting report by the BBC titled “climate change: dangerous and dirty used cars sold to Africa” says 14 million used cars were exported from the US, Europe, and Japan between 2015 and 2018 and dumped in developing countries including Africa majority of which (80%) didn’t meet safety and environmental standards. There are about 1.4 billion cars in the world and the number is expected to reach two billion by 2040. Most of this growth is taking place in developing countries and emerging economies in Africa, Asia, and Latin America. In East Africa, the industry stood at 257,000 cars in 2015 and is expected to grow to 630,000 cars by 2030. Of these, brand new vehicles are about 15% while imported used vehicles stand at 85%. By importing these vehicles, we deny our young people the jobs they need to live meaningful lives. We have convinced ourselves that we can’t do big projects such as making cars — something that has been done for more than a century elsewhere. I have a friend who used to work as a teacher in a primary school in Kireka who made a successful US green card application and relocated to a mid-western state. Once there, she started looking for a job and within a month she had landed one and started working at a car assembly. She didn’t have any automotive skills and she had never worked in any factory before. Once she was hired, she received a one-week orientation on how to fix parts on a compact SUV. If a primary school teacher can be retooled within a week and she starts making 480 cars over an eight-hour shift, can’t that be done here and reduce the dumping that the BBC reported about? There are hundreds of graduates on our streets. However, there is a need to learn from the best and build structures and systems that can grow our nascent automotive industry. I learnt over the weekend that Kiira Motors had hired Edward T. Hightower as its automotive industry advisor. I follow Hightower on Twitter and had read some impressive reviews about him and his book, Motoring Africa. I was excited that somebody of his status can accept an advisory role in an ideally small start-up in Africa. Hightower, an engineering graduate of the University of Illinois at Urbana-Champaign and an MBA from University of Michigan Ross School of Business, has worked in several new-product design and engineering, strategy, brand marketing, and senior executive roles between Ford, BMW, and General Motors. He led GM’s $15 billion global crossovers business as the Executive Chief Engineer and Vehicle Line Executive, planning and developing the Cadillac XT5, GMC Acadia, Chevrolet Traverse and Blazer, Buick Enclave, Holden Acadia, and other platform variants. These vehicles are sold in many markets around the world. Hightower also served as Chief Engineer for Ford’s full-size SUVs – Excursion, Expedition, and Navigator as well as BMW’s Brand Manager for the 5, 6, and 7 Series models in the US. I believe his involvement with Kiira Motors will put a spotlight on our automotive industry and open opportunities for Uganda leading to localization in the manufacture of car parts and the development of the automotive value chain. Many investors in the automotive industry and emerging markets should be interested in what makes a global executive work with a small firm which is just building its vehicle production plant outside Jinja town. Global executives don’t usually just go for the money because they have names to protect and see opportunities that others don’t necessarily see. North America, Europe and some parts of Asia are already saturated when it comes to the automotive industry, so the growth like the BBC article alluded is right here in Africa. I hope that Kiira Motors won’t be selfish and make Hightower accessible to other entrepreneurs so that they (business people) can see opportunities in the automotive industry value chain. Even if you don’t believe in Uganda making cars, we already import many of them in the country and the region each year. These cars need parts but the majority are imported. The late James Mulwana learnt many years ago that the automotive industry is a key driver of the economy and invested heavily in his Uganda Batteries outfit. Today, I believe we don’t import as many car batteries as we would be had Mulwana not set up his business. Can’t we make wipers, brake pads, bolts and nuts, spark plugs, and the like? A car has on average 30,000 parts. Hightower should help us see these opportunities. The author is a communication and visibility consultant. djjuuko@gmail.com

December 9, 2020