Uganda car maker to invest $2 billion in a new automotive city

KAMPALA, Uganda - Kiira Motors Corporation (KMC) -Uganda state-owned vehicle assembly manufacturer is set to build a new automotive tech city to the tune of $ 2 billion.

The Kampala-based electric car manufacturer is eyeing an investment of $ 2 billion from both regional and international investors to realize its ambitious plan.

Kiira’s project summary indicates that private investors are expected to raise $1.43 billion or 72 per cent of the $1,979,542,111 total investment.

Dubbed Uganda Eco-Automotive Industrial and Technology Park, the expansive facility will house an electric-mobility research, skilling and innovation centre, as well as a multiplicity of automotive component manufacturers, a larger motor vehicle plant for KMC, extensive vehicle proving grounds, and the company’s corporate headquarters.

While KMC will invest $540 million, half of which will be financed by equity and the other half by debt. The project is estimated to take up to two decades and a half with the initial phase running for eight years to 2030, which aims to account for 65 per cent of the value of the supply chain by that time.

Uganda’s new automotive city is expected to break even in the 9th year with the project targeting to supply automotive manufacturer parts to their counterparts across the continent.

Set on two square miles at a site 173km northeast of Kampala, the facility will complement the 5,000 buses and trucks-a-year initial facility nearing launch on the outskirts of Jinja.

The partners manufacture automotive accessories including air and fuel filters, brake pads, glass, seats, lithium-ion batteries, bolts and nuts, wiring harnesses, tyres, electronics and bamboo boards, on-site.

Part of the land will be dedicated to a Free Economic Zone, a hospital complex, commercial centres, recreation parks, schools, low, medium and high-density housing, a solar farm, logistic centres and park management services.

GAROWE ONLINE