KMC Takes the Driver Seat as it Moves into High Gear

Sandy Stevens Tickodri-Togboa, Chairman, Kiira Motors Corporation (KMC), talks to World Business Journal about the president’s role in the company’s origins, the current production plans of its models and its aspirations for the future as it cements its place in the automotive sector.

How did Kiira Motors Corporation (KMC) begin?

A transformative moment came in November 2007 when a critical need arose to assist the students of Makerere University that were involved in a groundbreaking vehicle project with the Massachusetts Institute of Technology (MIT). The absence of support would have jeopardised the students’ graduation. Stepping up to the challenge, I collaborated with Paul Isaac Musasizi to oversee the MIT-led initiative, which began a grand scheme involving 31 universities, with Makerere University being Africa’s sole representative.

The defining moment came in November 2009, after my appointment as deputy vice chancellor, finance and Administration at Makerere University. I received word that President Yoweri Museveni would be visiting the university’s faculty of technology to see what my team and I were engaged in, and how the government could promote our work. I had no idea that my team’s work was being monitored at the highest level. The president’s December 2009 visit culminated in his invitation for my team to deliver a presentation to the Cabinet of Uganda and the reception by the Cabinet was overwhelming.

The real turning point emerged in 2010 when began building a prototype, an undeniable proof-of-concept (PoC) vehicle, that with the president’s guidance, came to be called the Kiira Electric Vehicle (KEV). This marked a year dedicated to fine-tuning designs and presentations. We successfully unveiled the PoC in November 2011 with the president’s commissioning. His endorsement and the government’s unwavering support led to the formal establishment of KMC in 2014.

Soon, the KEV, capable of travelling 80 km on a single charge, was created, subsequent followed by the Kiira EV Smack, which tackled distance limitations by combining electric motor drive and internal combustion engine drive in November 2014. The ambitious Kayoola Solar Bus, which harnessed solar energy for public transportation, was launched in February 2016.

In 2018 KMC’s establishment gained official approval by the government, opening doors for funding as we began construction at our Jinja site. Subsequently, we facilitated the domestic assembly of electric buses such as the Kayoola EVS and Kayoola Diesel Coach. This period also saw enhanced collaborations with local companies, exemplified by our partnership with Tondeka, in which we manufactured five buses for their operations.

In 2024 amidst ongoing infrastructure development and expertise in manufacturing electric and diesel buses, KMC continues to harness local resources, generate employment and significantly contribute to Uganda’s industrial growth. We remain steadfast in our commitment to creating eco-friendly vehicles, forging partnerships that strengthen local industries. This commitment recognizes the pivotal role played by the president in our journey from vision to reality.

How is KMC expanding its manufacturing capabilities and market reach?

Our focus is on the imminent completion of our facility by the first quarter of 2024. Installation for assembly line production is currently in progress and projected to increase manufacturing capacity to 22 vehicles per day through a 16-step assembly process.

Expansion signals a significant move forwards as we set our sights on the East African Community market. Internally, we are exploring potential partnerships with educational institutions to facilitate bus procurement. Our aspirations are grounded in the projected demand for approximately 12m vehicles in Africa by 2040. Our aim is to secure a modest 12% share in Uganda by increasing our annual production capacity to 5000 vehicles. Such growth, if achieved, would mark a significant milestone for our operations and contribute positively to Africa’s automotive sector.

What are KMC’s future plans and collaborations?

In anticipation of our 2024 model, slated for completion by Q1 2024, we plan to introduce an additional 28 buses, enhancing our fleet. A highlight is the Non-Aligned Movement summit in January 2024, where we plan to showcase 30 improved versions of our Kayoola buses. This upgraded model is set to feature a larger capacity battery, aimed at extending range up to 400 km, from the current 300 km. We plan to establish a number of charging infrastructures, ensuring convenient and seamless access to charging points, which presents a promising opportunity for potential private investments in the charging infrastructure sector.

In parallel, our collaboration extends to the development of the Electric Trike (3-in-1), an innovative creation stemming from Kevoton Motions Engineering. This engine can serve several purposes, including powering the vehicle, pumping water at a rate of 6000 litres per day and generating electricity. Recognising its diverse applications, we have partnered with the Science, Technology and Innovation (STI) Secretariat to further refine and expand its functionalities, attract more innovators into these incubator programmes and foster a culture of innovation and development. The trike represents a fusion of irrigation, power generation and mobility and its successful launch has inspired future designs, paving the way for potential evolution into a two-wheeled car.

Innovex Scales Up Manufacturing as it Eyes Growth

Douglas Baguma, Founder and CEO, Innovex, talks to World Business Journal about the company’s market share in the local business environment, as its internet of things technology solution, REMOT penetrates beyond Uganda, and into the EAC.

What inspired Innovex’s inception, and what range of services does the company presently offer?

Innovex’s journey began with a vision to bridge Africa’s technology gap, as there are very few technology products that are made in Africa and sold to the rest of the world. Founded in 2015, we are a Ugandan company that aims to spur Africa’s socio-economic transformation through the development of novel technologies. Innovex’s competencies include embedded systems, connected devices, web and software development, and wireless communication technologies. We entered the market with a homegrown internet of things (IoT) solution. This IoT solution, REMOT, offers after-sales service support; remote monitoring and controlling solar photovoltaic systems and equipment; and supporting preventative maintenance and repair activities. To date, REMOT has been used in eight African countries by solar companies and solar energy researchers.

Working with the Carbon Trust, a UK headquartered climate expert partner, under the Transforming Energy Access (TEA) programme, Innovex has established a local surface-mount technology and plastic manufacturing facility for its products. This establishment seeks to ensure local value addition by providing better job opportunities for local product developers in the solar energy space while increasing accessibility to produce spare parts.

REMOT helps solar businesses, non-governmental organisations and other solar players solve problems around the operation, efficiency and maintenance of their solar installations. We work with over 60 companies in Uganda, these include Village Energy, Solar Nation, All in Trade and Aptech Africa, and also with programmes in Kenya, Nigeria, DRC, South Sudan, Somalia, Ethiopia, and Tanzania like E4I, Clasp, and Vodafone.

Additionally, we assist partners like GIZ and USAID in verifying installations and monitor critical equipment, such as the Ministry of Health’s oxygen plants, to prevent failures. We also offer customised hardware and software solutions within a three-month turnaround. With our move into local electronics manufacturing supported by the Science, Technology and Innovation (STI) Secretariat, we are progressing towards becoming contract manufacturers.

Initially funded by the UK government, our transition to local manufacturing has been fruitful. Collaborating with the government of Uganda, we are relocating to an industrial park by year-end 2023. This partnership with government will increase our production capacity to 20,000 units per year, while benefitting from a number of governmental initiatives that are aimed at promoting local value addition, import substitution and employment creation. We will later scale up the manufacturing facility with equipment of bigger capacity.

How did partnerships aid Innovex during its initial growth period and throughout the company’s continuous growth?

The partnerships have played a pivotal role, securing over $1m in funding through grants, debt and equity. Initial collaborations began during our early stages of growth with government programmes, and over time, Innovex has been a part of a number of programmes, such as Efficiency for Access, TEA, Water and Energy for Food, Innovate UK, Netherlands Trust Fund IV programme and Mandela Washington Fellowship programme. Through these initiatives, Innovex has received financial and non-financial support from organisations, such as FCDO, USAID, GIZ, IKEA Foundation, International Trade Centre and OVO Foundation, as well as with Belgium, the US Department of State and the government of Uganda. Each of these opportunities have enabled commercialisation and business development for our product. 

How did your innovation journey translate into deploying successful, market-ready solutions?

Our journey started with a government initiative while at Makerere University, notably the Presidential Innovations Fund for College of Engineering, Design, Art and Technology. This led to early exposure to robotics and embedded systems, shaping our expertise. Later, in 2019, a government grant allowed engineer training to take place in Belgium and equipment procurement for our electronics lab. Continued support from various government programmes including favourable taxation policies for equipment import, has fuelled our local manufacturing initiatives. As entrepreneurs, we thrive on challenges, particularly in changing perceptions surrounding African technology. Although the shift, especially in hardware, is difficult, it is also incredibly rewarding and inspiring for others, to tackle such a significant problem.

Could you outline the company’s objectives over the next two years?

For REMOT, we have recognised a significant demand among development partners and organisations in the energy access subsector for verifying and monitoring the impact of their investments. Discussions with the World Bank in handling a $600m energy access programme in Uganda, highlight the need for real-time verification during installations and ensuring sustained value afterwards. Over the next two years, we aim to assist these partners in verifying and monitoring the impact of their investments, including metrics such as the reduction of CO2 emissions.

Additionally, REMOT offers an opportunity in mitigating risk for financial institutions that invest in energy access businesses. By ensuring the quality of our equipment, our solution minimises the risk associated with loans for installing such equipment, while preventing non-performing loans that occur because of equipment failure. Our goal within local manufacturing is to establish Innovex as the primary electronics manufacturer across Africa, as we also aim to become the preferred local electronics manufacturing service provider.

MTN Uganda Transitions with Tech Offerings

Sylvia Mulinge, CEO of MTN Uganda, discussed with the World Business Journal the company’s 2025 vision, mobile money offerings, various collaborations, and substantial investments in 5G infrastructure and technology.”

How has the successful listing of MTN on the Uganda Securities Exchange (USE) influenced its profitability and corporate profile?

MTN Uganda’s listing on the USE marked a pivotal moment in our journey, catapulting us to new heights. The impact was profound, more than doubling the local market capitalisation from Shs3.8trn ($999m) to a remarkable Shs8.2trn ($2.2bn). This transformative milestone propelled us into the league of Africa’s most valuable companies, a recognition of our growing influence and significance on the continent. We’re now viewed as a local company and partner in the growth and development of Uganda’s economy and, above all, more transparent and accountable to our stakeholders. As part of our shared value, the company has since paid a total of five dividend payouts valued at Shs586.7bn ($154.2bn) to over 20,000 shareholders since its listing.

How does the implementation of Ambition 2025, MTN’s 2025 vision, align with Uganda’s Digital Transformation Roadmap?

Ambition 2025 is a commitment to spearheading digital solutions that drive progress across Uganda. Our focus rests on five key growth platforms: financial technology (fintech) solutions, digital services, enterprise services, Network as a Service (NaaS) and the application programming interface (API) marketplace.

Remarkable progress has already marked our journey. Take, for instance, the transformation of fintech through MTN Mobile Money (MoMo), a cornerstone of financial inclusion since its launch in 2009. With over 11m customers, MTN MoMo has become a catalyst for facilitating payments for businesses, significantly boosting the adoption of e-commerce. The growth of MoMo merchants, tripling to over 267,000 in the past year, attests to its resounding impact.

In partnership with NCBA Bank Uganda, MTN MoMo has extended its services to provide savings and credit facilities, promoting financial inclusion. Furthermore, our collaboration with XENO Investment Management empowers customers to invest in productive ventures, including government Treasury bills and bonds. MTN MoMo also offers opportunities to save for unforeseen medical expenses through a partnership with clinicPesa.

In the realm of enterprise services, MTN introduces the Fast-Moving Consumer Goods (FMCG) Digital Suite, a pioneering solution transforming the supply chain landscape. By automating product and service distribution and enabling payments via MoMo, this platform eliminates the need for cash transactions. This not only enhances efficiency but also addresses security concerns and streamlines record-keeping across the supply chain. We are proud to have onboarded Uganda Breweries onto this platform, and we eagerly anticipate more businesses joining this innovative journey.

Our commitment extends to expanding our network to ensure universal access to our services. Since 2021, we have erected over 1871 new masts, significantly enhancing our network coverage. Notably, our 2G population coverage has increased from 98% during the first half of 2022 to an impressive 98.4% in 2023. The evolution doesn’t stop there, as our 3G and 4G coverage has also seen substantial enhancements. Our 3G coverage has increased from 90.9% to 92.4% and our 4G coverage, from 67.7% to 83.4%. We are also making substantial investments in our 5G infrastructure, products, services and technology, while expanding our fibre-optic network to over 9500 km to meet our customer needs.

Regarding the API marketplace, MTN recognises the evolving needs of consumers and is now providing third parties with access to our proprietary software platform. This innovative service empowers businesses to create solutions that accelerate digital transformation and innovation. With the launch of the API service, MTN Uganda positions itself as a digital transformation enabler and a valuable partner for businesses in both local and international markets.

In this age of rapidly advancing technology, we have moved beyond our telecoms roots and transitioned into a technology company, delivering cutting-edge solutions such as cloud computing, the Internet of Things, AI, Unified Communications and Security as a Service.

This aligns well with the government’s Digital Transformation Roadmap 2023/24-2027/28 that is expected to revolutionize Uganda’s tech landscape. The roadmap, launched in August 2023, is anchored on Digital Uganda Vision 2040 and represents a bold vision for our nation’s future that technology is a catalyst for sustainable development, economic growth and improved livelihoods for all Ugandans.

How can MTN help shape the future of Uganda’s telecoms sector?

Since our establishment 25 years ago, we have played a pivotal role in making mobile phone ownership accessible to everyone. From only 40,000 mobile phone subscribers in all of Uganda in 1996 to more than 34m mobile phone subscribers in 2023, MTN has also commanded more than 50% of the market share. This achievement was realized through the elimination of barriers, such as monthly service fees and a substantial cost reduction in making calls.

With a stable and growing economy, a relatively young population with more than 70% under 30 years and relatively low internet penetration rates, the future is bright for the telecoms sector moving forwards.

 STI Secretariat Embarks on Innovation-Led Journey for Growth

Dr. Monica Musenero Masanza, minister of the Science, Technology and Innovation Secretariat (STI-S) shares insights with World Business Journal about Uganda’s substantial strides in fostering collaboration with the nation’s most talented and innovative individuals, guiding them on the path to entrepreneurial success.

What does the Science, Technology and Innovation Secretariat (STI-S) do?

The STI-S coordinates and mobilises scientific efforts across all industry sectors. We also provide oversight and policy guidance to scientists, stakeholders, ministries, research institutions, local governments and the private sector. Our national goals are enhanced productivity, import substitution and increased export of knowledge-based products and services.

Currently, we bring together multiple agencies in innovation, technology and research as part of the Innovation, Technology Development and Transfer programme. We try to promote coordination across ministries to support entrepreneurs, bring products to market and build new, stable companies, ultimately supporting Uganda’s economic development. We have created an educational four-phase Journey programme which defines the concept and activities of STI-S for successful product, company and brand development. The comprehensive approach guides our efforts to bridge the gap between science and the economy.

How does this process improve product development?

We found that 90% of projects were stuck at the idea phase. Innovators incorrectly assumed that their prototypes were market-ready. Laboratory innovation was not translating into tangible economic outcomes. STI-S hasn’t launched any profitable enterprises so far. Nevertheless, progress has been made. For example, the Banana Industrial Research and Development Centre has developed numerous products that are transitioning to phase two.

What are the challenges in progressing from phase two to phase three and ultimately reaching phase four in the Journey programme?

Uganda lacks a private sector that readily accepts enterprises born from innovation. Additionally, many innovators are young and lack funding, business experience and established markets for their products. Regardless of whether innovators understand how to advance in their projects following phase one, funding remains an obstacle. The Innovation Fund mostly supports phase-one projects. Phase-two funding is more stringently allocated and inadequately structured to meet the demands of this phase. We are currently in discussions with the Uganda Development Bank to design finance products which offer long-term capital, affordability and a well-structured approach to support phase-two innovation effectively.

How does the Innovation Fund work? 

The Innovation Fund promotes STI-S projects in universities and private sector entities and at any stage. A notable success story is the Electric Trike (3-in-1) from Kiira Motors (KMC) which also acts as a farm tool capable of carrying products, pumping water for irrigation and powering homes and small factories. The product entered phase two on Independence Day, October 9, 2023. We are exploring mass production possibilities given the rapid development from initial concept to field testing in just 12 months. The next funded phase is monitoring its performance over 30,000 km. We are also conducting various value-addition research projects for indigenous crops like cassava, sweet potato and shea butter, with the goal of making these products industry-ready.

What are STI-S’s current priorities?

We have identified eight key areas of focus, with five falling under the banner of ‘the new economy’ in which we are actively developing the capacity to excel. The remaining three areas involve expanding within existing health, plant, animal and human sectors. For example, we view malaria as a natural resource for which we can produce our own malarial drugs and vaccines. We have already worked on vaccine development for both humans and animals with Alfasan Uganda including a tick and Covid-19 vaccine.

These ‘pathfinders’ help us build knowledge, infrastructure and expertise on the way to RNA, inactivated viral, unit and vectored vaccines targeting various diseases. We currently have three human vaccines ready to start clinical trials and are building a government-funded pilot plant addressing key shortfalls. Recent success in animal vaccines has paved the way for contract manufacturing and further research. We are also actively involved in therapeutic drug development with one drug having successfully completed clinical trials, two more currently ongoing, and seven further scheduled to enter trials soon.

Another part of the story is establishing a robust supply chain. In electric mobility, for instance, we have been working with KMC to offer support for other players. We are supporting Microfuse, which has designed a small desktop computer that costs only Shs400,000 ($106). We design locally, but manufacturing is still done in China. However, we shall soon have the capacity to manufacture locally. In addition to promoting local manufacturing, where possible, we are establishing a suitable manufacturing facility that reduces costs. We are building a talent pool by establishing training programmes in collaboration with universities including an entity targeting Industry 4.0. It will focus on manufacturing, design and the development of electronics, encompassing both hardware and software technology. We aim to launch a smart electronics production facility in the third quarter of 2024.