One of the main reasons for Uganda’s slow economic growth is the little investment in the automobile industry. The automobile industry is a pillar of the global economy, the main driver of macroeconomic growth and stability and technological advancement in both developed and developing countries, spanning many adjacent industries. The automobile is perceived as a fast, comfortable, flexible and affordable mode of transport and has become a status symbol or means to reflect identity. Automobiles are and will continue to be critical for the functioning of various industries, sectors, societies and economies worldwide.
Kiira Motors Corporation (KMC) is an Automotive Manufacturing Company incorporated by the Government of Uganda and Makerere University to champion value addition in the Domestic Automotive Industry for job creation and diversification of the economy.
The automotive industry consists of complex supply chains, which over time have evolved into a global production network. While only a limited number of countries and companies lead the production of automobiles, the industry’s value chain is spread all over the globe and a large number of companies are involved in designing, developing, manufacturing, marketing, selling, repairing and servicing automobiles and automobile components.
Findings:
- The automobile industry is a pillar of the global economy, the main driver of macroeconomic growth and stability and technological advancement in both the developed and developing world.
- The corporation has a good plan for the youths in this country as they are actively involved in their value chain at different stages. 77% of the current employees are youths below the age of 30.
- The plant is 99% funded by the government of the Republic of Uganda. The one per cent comes is in form of support from donor agencies. There is also the hope of listing the corporation on the stock exchange market in the future for the natives to have shares in it. bank.
- The paint that was used on the Kayoora Buses was purchased from local firms like peacocks and others. There is also an opportunity to localize the supply chain of batteries.
- The regulation of the automobile industry in Uganda needs more enforcement and enough research by policymakers.
- The plant has domestic waste facilities and a biological site with a capacity of 265,000 litres and a water distribution reservoir. All the plant lighting is run on solar.
- South Africa has the oldest automobile industry in the world dating to 1924, Japan started producing cars in 1927 after World War II.
- The corporation is built on five major pillars i.e., product, people, plan, policies and mobility infrastructure.
Challenges for KMC
- Most Ugandans don’t believe that those buses were made in Uganda by Ugandans.
- Lack of proper automotive regulation policy
- Disrupted supply chain: The onset of COVID-19 brought about an immediate halt in current production, disrupting supply chains the world over.
- Lack of Capacity
- Change in customer behavior: The collapse of the economy, rise in prices, and the all-around dire state of public health and financials brought about a considerable change in the buying patterns of consumers.
Opportunities for local participation in automotive value chain
- Real estates companies can pattern to construct houses for staff
- Paint factories like peacock will supply paint when production starts
- Battery companies like Uganda Batteries Limited (UBL) have the opportunity to supply batteries
- Steel bar factories like steel and tube limited have the opportunity to supply their materials.
Local farmers will supply food for the staff