State Minister for Higher Educatio, Science and Technology,
Prof. Sande Stevens Tickodri Togboa speaks at the consultative meeting
by Uganda Development Coorporation on Friday
The State Minister in charge of Higher Education, Science and Technology, Prof. Sande Stevens Tickodri has highlighted the critical importance of stakeholder consultations as Uganda looks to establish an automotive industry.
He made the remarks on Friday during a consultative meeting where Uganda Development Corporation (UDC) presented a micro analysis of the buses and trucks market in Uganda.
The analysis explored key applications of commercial vehicles, asset financing, dealerships, spare parts stores as well as automotive value chain investment incentives.
Several automotive Original Equipment Manufacturers (OEMs) have so far expressed interest in partnering with Kiira Motors Corporation to establish a truck and bus manufacturing plant in Uganda.
Among them is Ashok Leyland and Mahindra from India, Chinese ‘Sino Truck’ and e-Traction an electronic power train system technology.
Kiira Motors’ Kayoola Bus
“Across East Africa, transportation by road is predominant and most important to sustainable trade and socio-economic development due to affordability and flexibility. Estimates show that 2.5 million vehicles ply roads in the region a day,” asserted the Minister.
He noted that investing in vehicle manufacturing in Uganda is critical adding that special economic zones offer opportunities for Uganda to start exporting automotive parts like seats.
According to the analysis, Uganda possesses vast commercial vehicle application especially given the transportation of agricultural produce, construction materials, waste management, logistics and mass transportation in cities. This therefore provides a steady market for Kiira Motors trucks and buses within Uganda alone.
Commercial vehicle owners in Uganda however, emphasize the need for competent and well stocked service centers to ensure that vehicles remain operational and hence increased profitability.
A field survey conducted by UDC for example shows that Japanese brands are preferred in the market for their durability and availability of spare parts.
For the trucks and buses project to be a successful venture the analysis recommended certain measures among them; vehicle financing options to promote new sales of vehicles made in Uganda over imported used cars.
There’s also urgent need for an automotive industry development policy framework to prioritize exportation of vehicles and limit importation
of finished used vehicles.
Participants in the consultative meeting included representatives from Uganda Revenue Authority, National Water and Sewarage Corporation, Uganda National Roads Authority, Uganda Investments Authority, Uganda Registration Service Bureau among others