KIIRA MOTORS CORPORATION

1.         BACKGROUND

Kiira Motors, “a brainchild of Makerere University”, is a Presidential Initiative for Automotive Manufacturing in Uganda. This industrial development intervention is aimed at establishing Vehicle Manufacturing Capabilities in Uganda with the Market Entry Product Mix including Pickups, SUVs, Sedans, Light and Medium Duty Trucks, and Buses. The ultimate goal is to establish Kiira Motors Corporation as an Automotive Original Equipment Manufacturer (OEM) in East and Central Africa by 2039.

1.2       The Kiira Motors journey dates back to 2007; evolving from an extra-curricular activity under the auspices of the then Makerere University Faculty of Technology, to a university curricular activity and later a mainstream research and innovation program which designed and built the first ever Electric Vehicle in Africa, the Kiira EV.  The Kiira EV was launched by H.E. President Y.K. Museveni on 24th November 2011.  Powered by the visionary leadership, various stakeholders and a team of extraordinarily talented young men and women, Kiira Motors has now transitioned into a government program for industrialization through Automotive Engineering & Manufacturing contributing to the strategic transformation of Uganda into a middle income economy by 2040.

1.2 Kiira Motors Accomplishments by March 2016

1.2.1    Government, through the Uganda Investment Authority (UIA) has allocated 100 Acres of land for the KMC Plant located at UIA's Jinja Industrial and Business Park. The Cadastral and Topographical Survey; Environmental Impact Assessment; and Geotechnical Analysis of this Site have been completed.

1.2.2    Staff Training in Vehicle Engineering & Manufacturing is on-going at the renowned institutions like the Ford Motor Company Facilities in Dearborn Michigan, USA; Centre for Automotive Research  at Ohio State University; Kettering University, Flint, Michigan, USA (Former General Motors Institute) among others.

1.2.3    The Kiira Vehicle Technology Innovation Program has so far developed three Concept Vehicles; The Kiira EV, The Kiira SMACK, & the Kayoola Solar Bus. This program has been supported by a wide spectrum of artisans, craftsmen and technicians especially in the informal manufacturing sector. These skilled personnel have demonstrated readiness for fabrication of vehicle seats, body building from metal and fibre glass, mechanical and electrical system physical integration. This is a true testament of the availability of a labour pool in Uganda capable of supporting the Automotive Manufacturing Industry.

1.2.4    The Kiira Motors Investment Analysis Covering Market Analysis; Business Opportunity Analysis; Market Entry Product Concept Analysis; Product Feasibility (Manufacturing, Logistics, and Engineering & Facilities); Financial and Economic Impact Analysis; HR Plan and Business Implementation Strategy has been completed. The business strategy was launched by the Rt. Hon. Prime Minister at a colourful function attended by key stakeholders on 7th December 2015, at the Office of the President Conference Hall.  The Kiira Motors Business Case was meticulously developed by World Renowned Automotive Industry Experts from the United States of America, Europe, and South Africa. It elaborated in great detail that there is fertile ground for Automotive Engineering and Manufacturing in Uganda for Uganda, the East African Community, and Rest of the World (RoW). The Kiira Motors 25-year Business Strategy was crafted to progressively establish vehicle manufacturing capabilities in Uganda, initially as an SKD/CKD Manufacturer of a cross section of vehicles in partnership with a reputable Automotive Original Equipment Manufacturer, ultimately establishing KMC as an Automotive OEM by 2039.

1.2.5    Staff of Kiira Motors formed the Core Team providing technical Support to UDC in executing a thorough Micro-Analysis of the Commercial Vehicle (Trucks & Buses) Market in Uganda.

1.2.6    Kiira Motors is the Key Government of Uganda Technical ingredient of the EAC Task Force directed by the Heads of State Summit to develop Modalities for the Promotion of the EAC Automotive Industry and Reduce Importation of Used Vehicle from Outside the EAC.

2.         Value Proposition of the Kiira Motors Investment

The Kiira Motors Corporation Investment presents several benefits and opportunities to Ugandans:

2.1       Over 12,000 jobs are projected to be created during the Capital Expenditure of the KMC infrastructure development and over 2,000 jobs during the operational expenditure phase.

2.2       The contribution to GDP resulting from the Capital Expenditure is estimated at 15.66 Million US Dollars. The contribution to Production resulting from the KMC operational expenditure for the period 2019/2028 is estimated to be over 27.67 million US Dollars.

2.3       The KMC Investment is expected to catalyse backward and forward linkages with other sectors, thereby ensuring that more domestic value addition. The oil refinery that is being constructed not only in terms of by – products plastics and other oil product; the Steel and Sheet Glass Industries for Body Parts; Textiles and Leather Industries for Interior Trim Components; amongst others. The formation of robust industrial linkages is key to successful industrialization.

2.4       KMC will support the creation of vital infrastructure for Uganda (Power Plants; Standard Gauge Rail; Roads; National Fibre Optics Infrastructure; among others) through creating significant demand for the related services.

2.5       KMC will encourage private sector investment to establish auto parts manufacturing and related value chain enterprises.

2.6       The manufacture of Vehicles in Uganda will provide fuel efficient and environmentally friendly transportation technology enhancing our environmental stewardship and contributing to the EAC mission of reducing the importation of used vehicles from outside the community.