Kampala, Uganda. The Uganda Parliament has greenlighted additional funding of Ugx134 billion for Kiira Motors’ ambitious expansion.
This move signals strong support for Uganda’s ‘craving’ and intrusion into the burgeoning electric vehicle industry.
The Parliament’s Presidential Affairs Committee has recommended allocating an additional Ugx134.14 billion to Kiira Motors Corporation (KMC).
The funding, proposed to the Parliament budget committee on Wednesday, January 24, 2024, aims to bolster Kiira Motors’ ambitious plans, particularly the operationalisation of the Jinja electric vehicle plant.
Kiira Motors Corporation is a State Enterprise dedicated to advancing the Motor Vehicle Industry in Uganda. It received approval from the government in April 2018 for the establishment of the Kiira Vehicle Plant.
The project secured 100 acres of land at the Jinja Industrial and Business Park to facilitate its operations.
Funding Gap, Recommendations
Despite Kiira Motors’ initial request of Ugx166.64 billion to kickstart the Jinja electric vehicle plant operations, only Ugx32.5 billion was allocated in the upcoming financial year 2024/25 budget.
The Presidential Affairs Committee’s recommendation for an additional Ugx134.14 billion aims to bridge this funding gap, enabling Kiira Motors to fulfil its vision of becoming a significant player in the electric vehicle market.
Dr. Monica Musenero, the Minister of Science, Technology, and Innovation, told the committee there’s a need for additional funds for various crucial projects.
Apart from supporting Kiira Motors, she sought Ugx37 billion for the establishment of an Innovation Fund, Ugx44 billion for the creation of a Science Park, and Ugx29.83 billion for the pathogen economy, specifically the manufacture of various vaccines.
National Budget Consideration
The recommendations come a day ahead of Parliament’s consideration of the 2024/25 National Budget Framework Paper.
The additional funding for Kiira Motors and other science and technology-related projects highlights the government’s commitment to advancing innovation and industrialisation.
Kiira Motors’ Vision
Kiira Motors Corporation’s overarching goal is to champion value addition in Uganda’s nascent Motor Vehicle Industry through technology transfer, contract manufacturing, and supply chain localisation.
This strategic initiative aligns with the national agenda for industrialisation, aiming to propel Uganda into an upper-middle-income economy by 2040.
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