Views: 2
Kiira Motors Corporation has presented a Shs524 billion business investment budget to the Presidential Affairs Committee of Parliament.
The proposal was contained in the Ministerial Policy Statement, and Budget Estimates for the FY 2024/2025.
“We are counting on guidance and support from the government to explore sustainable, timely and innovative funding for the Corporation,” Paul Isaac Musasizi, chief executive of the budding indigenous mobility enterprise, told the committee on Friday.
Operationalised in 2018, Kiira Motors is fully owned by the government, and Makerere University with shareholding of 96 percent and 4 percent, respectively.
Kiira Motors’ core business objective is to develop, make and sell sustainable mobility solutions (motor vehicles, parts, systems and services) in Africa.
Musasizi explained that Kiira Motors seeks to extend the value chain of material, harness the potential of innovative young people, substitute the importation of mobility solutions, and make the country a net source of e-mobility solutions.
The sorporation’s five year-business plan already approved by the National Planning Authority – NPA spans 2023-2028 to progress the entity to cash flow positive status.
Among the key cost drivers in the five year-plan include the construction, tooling and furnishing Kiira Vehicle Plant – KVP; parts and materials for plant commissioning; master store, human capital and capacity development, business development, and operating expenses.
Denis Onekalit Amere, the Kitgum Municipality MP, said Kiira Motors stands as the national premier and substantive entity with practical skilling capabilities for the present and future automotive industry workforce which legislators must support through adequate funding.
The committee chairperson, Jesca Ababiku said building a local motor vehicle industry is consistent with the national aspirations and pathways to Vision 2040 outlined in the National Development Plan – NDP III.
In the current FY 2023/2024, the corporation requires Shs80 billion to operationalise the vehicle plant startup facilities in Jinja and parts and materials to produce 30 buses to consolidate the production skills of the team on the newly installed production line and enhance consumer confidence.
But the Ministry of Finance, Planning, and Economic Development appropriated Shs32.5 billion, leaving a funding gap of Shs99.5 billion.
Currently, the overall funding gap for Kiira Motors stands at Shs134.14 billion.
The government has so far capitalised the corporation to a tune of Shs335 billion between 2018 and 2023.
Kiira Motors has the ambitious target of producing 150,000 vehicles annually by 2030.
It currently directly employs 168 staff in the engineering, production, finance, administration, marketing and sales and will rise to 600 once the KVP is commissioned.
As of March 2024, construction of the vehicle plant start-up facilities is at 86 percent completion and is projected to be ready for commissioning by October.
Since its establishment, Kiira Motors has produced 16 buses at its National Enterprise Corporation plant in Luweero Industries in Nakasongola.
At least 23 more are on the production line.
Source: Nile Post