JINJA, Uganda | Uganda has unveiled the Kiira Vehicle Plant, a $120 million investment that government officials and engineers describe as the most comprehensive automotive production facility on the continent. Commissioned on Friday, the factory represents a significant step in Uganda’s drive toward industrialization and economic self-reliance.
Construction began in 2019 and was completed in early 2024, with vehicle production starting in March 2025 under Kiira Motors Corporation, the state-backed company leading Uganda’s automotive ambitions. The plant is projected to assemble 2,500 vehicles in the medium term, scaling up to 10,000 units annually by 2030.
During the inauguration, President Yoweri Kaguta Museveni underscored the plant’s potential to save Uganda an estimated $800 million annually in vehicle import costs and employ hundreds of engineers. He described the facility as a foundation for reducing the country’s trade deficit while anchoring broader industrial linkages. “These young people I found in the factory have jobs,” Mr. Museveni said. “Where would they be working if we didn’t have Kiira?
The president also announced plans to accelerate iron ore exploration in Kabale and Butogota to supply the high-grade steel required for automotive manufacturing. Uganda currently spends nearly $900 million annually on imported steel, much of it unsuitable for advanced industrial use. “We are fortunate to have some of the largest iron ore deposits in the world,” Mr. Museveni said. “By refining them into high-quality steel, we shall save hundreds of millions of dollars.
Officials framed the Kiira Vehicle Plant as part of a broader agenda to integrate Uganda’s transport sector and reduce the outflow of funds on imports. Mr. Museveni urged scientists and policymakers to pursue vertical and horizontal industrial linkages, citing the dairy industry’s transformation as a model for how Uganda could build capacity in lithium batteries and other strategic products.
The launch also drew reflections from senior leaders. Dr. Monica Musenero, Minister for Science, Technology and Innovation, said Uganda’s “missed phases” of the industrial revolution were being offset by rapid advances in the knowledge economy. Ronah Magara, Chair of the Makerere University Council, noted that Kiira Motors began as a student prototype at the university, before being nurtured into a national enterprise. She called for increased research funding to sustain such innovations.
The National Enterprise Corporation, the army’s business arm, was credited for overseeing the construction of the plant, with board chair Gen. (Rtd) Joram Mugume praising the government’s emphasis on local content.
Paul Isaac Musasizi, Chief Executive Officer of Kiira Motors Corporation, said the company was now focused on building a strong industrial value chain and rolling out a robust business model to deliver vehicles that meet international standards. So far, the company has produced 37 electric vehicles and 27 diesel coaches, a foundation he said would accelerate Uganda’s “10-fold growth strategy.”
The Kiira Vehicle Plant, Africa’s newest automotive hub, is being viewed not only as a factory but as a symbol of Uganda’s determination to reposition its economy. For a country long reliant on imports, the sight of locally assembled buses and coaches rolling off the production line represents a striking new chapter, and one that, according to its architects, is only beginning.
