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Overcoming Challenges to Build Housing for All

Overcoming Challenges to Build Housing for All

Kenneth Kaijuka, CEO of National Housing and Construction Company, talks to World Business Journal about the company’s dedication to providing affordable housing across all income levels and highlights the imperative for the real estate sector to establish a national housing authority.

What projects is NHCC currently working on?

In Mbarara city, we have completed the first phase of developing 200 units; the second phase is underway. In Nalya, ongoing projects include Jasmine Apartments, 60 units, and Nalya Pride Apartments, 502 multi-bedroom units. Our portfolio also includes commercial projects like the state-of-the-art Electoral Commission headquarters in Lweza, Lubowa, pending construction due to funding constraints. To manage water infrastructure costs in our estates, we’ve forged a ten-year collaboration with the National Water and Sewerage Corporation while actively developing the National Building Research Center in Lubowa to uphold the highest construction standards and address issues like substandard materials.

What barriers exist in the effort to promote affordable housing?

Multiple challenges hinder the development of affordable housing projects, including urban and city planning obstacles such as small landholdings, family-level planning issues, lack of zoning for market categorisation, and limited skills in rural areas. High capital costs, short tenures, and demanding collateral requirements also need improvement. The lack of government guarantees, grants, and concessional funding exacerbates the affordable housing deficit, as banks and commercial lenders show little interest in financing social housing, slum redevelopment, mass housing, and low-cost housing initiatives. The housing deficit, estimated at over 2.4 million units, might only partially represent the situation; considering standards and quality, the deficit could be around 5-7 million houses. Emphasising quality and prioritising cost-effective services such as water and energy supply is vital in addressing affordability and the housing deficit.

What role can NHCC play in revitalising Uganda’s housing sector?

To revitalise the housing sector, we must strengthen our role by providing leadership in cities and municipalities and creating opportunities for other developers. A well-regulated housing sector with proper leadership is essential for infrastructure development. We should serve as the primary vehicle for investors in government housing projects, offering incentives such as land, infrastructure services, and tax waivers. Our proven leadership in areas like Bugolobi, Lubowa, Ntinda, and others demonstrates the ability to attract developers, positioning us as a leader and risk mitigator. However, the absence of this guiding role has led to challenges in identifying prime development locations. Establishing a housing authority similar to those in other East African countries could address zoning, infrastructure planning, waste management, housing quality, technology attraction, and funding. This approach would facilitate structured housing development, supporting government access to loans for sectoral growth while mitigating informal settlements and service provision challenges.

 

Overseeing Economic and Environmental Harmony

 

Overseeing Economic and Environmental Harmony

World Business Journal talks to Barirega Akankwasah, Executive Director, National Environment Management Authority (NEMA) about the significance of striking a harmonious balance between economic growth and biodiversity preservation.

What is the progress of implementing the Second National Biodiversity Strategy and Action Plan (NBSAP II)?

NBSAP II, covering until 2025, maintains its relevance with ongoing strategies in the implementation phase. Notable progress includes surpassing the global biodiversity target of 17% land protection, now standing at 18%. Moreover, the development of a finance plan under the biofeed program has further modernized biodiversity resources.

Efforts in ecosystem restoration, specifically forest and wetland rejuvenation, alongside initiatives in climate-smart agriculture and infrastructure, are in progress and anticipated to meet predetermined targets. 

Alignment between our National Biodiversity Plan and the 2022 Global Biodiversity Framework is underway, initiated through an ongoing review process. This review includes updated commitments, such as elevating protected area coverage from 17 to 30%, necessitating a reevaluation of our protected area system, particularly emphasizing wetlands and waterbodies.

Biotechnology, notably genetically modified organisms for food, and the discourse surrounding invasive species are integral considerations. Emphasis remains on ecosystem restoration, forestry, wetlands, and wildlife as key focal points.

How can the environment be incentivised, or be made profitable? 

To encourage environmentally friendly practices, incentives could be enhanced. For example, lowering prices for cooking energy sources such as LPG gas and solar options could be effective.

Similarly, alternatives to plastics, like paper packaging and reusable materials, should be promoted. Plastic usage remains a major environmental challenge. To support these changes, the government could provide incentives such as reduced taxes or tax holidays to foster environmentally conscious industries.

Currently, NEMA has introduced tax exemptions such as the 0% tax on hotel furnishings and tour vehicles in the hotel industry. Nevertheless, there’s potential for additional advancements, particularly in harnessing value from waste. This could effectively address various environmental challenges by creating resources like briquettes, organic fertilizers, and energy.

How have digital and tech advancements aided the biodiversity and conservation efforts that NEMA undertakes?

Technology plays a pivotal role in biodiversity conservation, encompassing monitoring, identification, and research. Presently, NEMA uses drones, satellite imaging, and remote sensors for wildlife species monitoring and census, along with GIS applications. Leveraging technology enables real-time responses to challenges like wildlife poaching and pollution, allowing for more effective interventions.

Exploring new advancements, such as virtual fencing, holds promise in preventing human-wildlife conflicts and managing livestock on our farms. We foresee the private sector taking the lead in investing in these technologies with the government playing a crucial role as both a consumer and a collaborator.

What are the potential risks associated with neglecting the equal importance of the environment in relation to economic priorities?

The environment deserves an equal footing alongside the economy; any imbalance risks dire consequences! While nature’s resilience is unmatched and will persist, neglecting its importance poses risks for economic progress. To achieve overall prosperity, it’s crucial for economics to collaborate harmoniously with nature, fostering mutual success and sustainable growth.

 

Elevating Raw Cotton to Value-Added Commodities

Elevating Raw Cotton to Value-Added Commodities

Edwin Mwesigye, CEO, Mutuma Commercial Agencies (MCAL), talks to World Business Journal about the company’s adaptability in diversifying its production lines as it looks to 2025 and beyond by expanding with value-additive cotton products.

Can you provide an overview of Mutuma Commercial Agencies (MCAL)?

MCAL is one of the leading producers in Uganda, specializing in high-quality hospital cotton wool for medical purposes. Additionally, MCAL offers a full range of other products, including vegetable oil, cottonseed cake for animal feed, cotton husks for mushroom cultivation, and soap stock for soap production. The company employs 230 individuals and has established further collaboration with approximately 6000 farmers, with the majority of them being smallholder farmers.

What is the current capacity of the ginnery factory and how has the partnership with Uganda Development Corporation (UDC) impacted your operations?

Our ginnery factory has the capacity to produce about 20,000 bales each season, but currently, we produce around 5000 bales per season. The reason for the reduced output is the limited availability of cotton in the country. UDC has been a valuable partner, providing us with working capital and holding a 36% stake in the ginnery.

Who are your main clients, and how do you meet their specific needs? Are there any government programmes that have influenced your product offerings?

Our primary client is National Medical Stores (NMS), to which we supply cotton for medical purposes. NMS is the governmental body that has a statutory mandate for warehousing and distributing essential medicines and health supplies within Uganda.

The government has encouraged the Buy Uganda Build Uganda (BUBU) policy to reduce the reliance on imports and also, to promote local production. The BUBU policy has affected us positively, as much of the cotton that is currently being imported is of sub-standard quality.

What key factors have enabled MCAL’s diversification into various production lines, and how has this impacted the company’s growth and its relationships with local farmers?

The diversification into various production lines can be attributed to our commitment to adapt to changing market dynamics and our mission to reduce dependency on any single product line. Diversification has allowed us to tap into multiple revenue streams and mitigate risks associated with fluctuations in specific markets. Our close relationship with local farmers is a critical aspect of this strategy.

By procuring conventional cottonseed from over 6000 farmers, we not only ensure a consistent supply of raw materials, but also contribute to local agricultural development. This partnership supports smallholder farmers, as they have a reliable buyer for their cotton produce. The impact of diversification on our growth is significant, as it has helped us create more employment opportunities, supporting local communities and the economy. Furthermore, it positions us as a versatile and resilient player in the agricultural and manufacturing sectors within Uganda. Our strategy has been to adapt and expand, ensuring our long-term sustainability and contributing to the prosperity within the regions in which we operate.

What is the main challenge you face in the cotton industry?

The main challenge within the subsector is access to capital. The capital that is made available from commercial banks often makes little business sense for us. We require so-called ‘patient capital’, especially in the agriculture sector, to address this issue.

Do you have any plans to extend the factory’s capacity or diversify your product range in the near future?

Yes, we have plans to expand our factory. We intend to venture into value addition by producing cotton yarn in addition to cotton wool in the best-case scenario by 2025. Our long-term vision is to add value to the entire cotton production process and reduce the export of raw cotton.

What is your message to potential investors looking at the cotton subsector in Uganda?

The message that I would give, is as follows: If you are considering investing in the cotton subsector in Uganda, I would advise focusing on value addition rather than primary production. There is a market for value-added cotton products, and it can significantly benefit both the industry and local farmers. By investing in value addition, you can achieve higher prices for cotton and contribute to the growth and stability of the subsector.

Regulatory Revisions Energize Electricity Sector Growth

Regulatory Revisions Energize Electricity Sector Growth

Eng. Ziria Tibalwa Waako, Electricity Regulatory Authority, (ERA) CEO talks to World Business Journal about beneficial regulatory changes, improving the investment climate for renewables, and moves towards a universal clean energy access target by 2030.

What are the key revisions in the amended Electricity No. 4 Act of 2022 and the expected benefits?

A key regulation introduced royalties for renewable energy plants, extending benefits previously exclusive to hydropower installations. This move supports the green initiative aiming to involve local communities where these plants operate, fostering community ownership and encouraging their active participation in the maintenance, security, and oversight of energy facilities.

The revised law abolished the single buyer model where a sole transmission company acted as the bulk off-taker, supplier, seller, and transmission system operator. This amendment led to the separation of the transmission segment, opening up the regulatory landscape. Now, multiple public and private entities can engage across the entire electricity value chain, including generation, transmission, distribution, export, and sale.

Aligned with this transformation, the “Electricity Sale in Build to Specified Customers (Direct Purchase) Regulation, 2022” creates significant opportunities for private investors. Generation and transmission companies can now sell power directly to designated entities, including industrial parks, specialized consumers, and for export purposes. 

Additionally, clauses introduced stiffer penalties for those tampering with infrastructure. While some regulations, like net metering, have been cleared for gazetting by the Office of the Government Attorney General, they aim to integrate consumers producing power into the grid, expected to become effective by the end of January 2024

With the Ministry of Energy and Mineral Development (MEMD), we support the establishment of a planning department to streamline planning processes across the value chain. 

Concurrently, the formation of the Electricity Infrastructure Fund assists in preparing projects through feasibility studies, providing potential investors with a clearer insight into investment opportunities.

What pivotal changes has GET FiT brought to Uganda’s energy landscape?

The Global Energy Transfer Feed-in Tariff (GET FiT) has created a conducive investment climate for solar, wind, and mini-grid projects, significantly advancing our mission to provide widespread access to clean energy by enhancing the overall enabling environment for private investment in renewable energy.

It sets a benchmark not just in Uganda but across Africa and has added 158MW to the grid, with a focus primarily on renewable sources, supporting our objective to decarbonize the sector. 

What key approaches are advancing the goal of a universal clean energy access target by 2030?

Strategically, we’ve integrated grid extension with off-grid solutions, backed significantly by government initiatives and development partners including the EU and the German Federal Ministry for Economic Cooperation and Development (BMZ). With their help, we’ve subsidized capital requirements for the first set of 40 mini-grids, enhancing financial viability and making end-user tariffs more affordable for the rural communities that benefit most from these installations.

We’re committed to finding innovative solutions to the challenges mini-grids face, such as their lack of economies of scale leading to higher fixed costs and end-user tariffs. This is crucial for our target demographic, with below-average incomes, so high tariffs do not hinder the adoption of these systems.

For example, the GET. Access initiative aims to establish 1,000 mini-grids across the country, connecting over 150,000 people in 140 remote villages. Through GET. Access, developers will receive financing supported by up-front, interim, and results-based CapEx subsidies. Additionally, the project will promote the productive use of energy (PUE) by providing selected appliances, facilitated by a PUE consultant.

In collaboration with the World Bank, we are also setting up mini-grids specifically to serve rural schools, health centers, refugee camps, and vulnerable settlements.

We are convinced that a collaborative approach involving the government, private sector, and development partners is essential to balance mini-grids, solar home systems, and grid extensions effectively. This cooperation is key to achieving universal electricity access by 2030.

Investments in Palm Oil Production Pay Off

Investments in Palm Oil Production Pay Off

Anoop Sharma, GM, BIDCO talks to World Business Journal about the country’s only palm plantation and achieving self-sufficiency in the vital palm oil crop. 

Can you elaborate on BIDCO’s structure and ongoing operations in Uganda?

BIDCO, a joint venture between BIDCO Africa and Wilmar International, operates under a tripartite agreement with the Government of Uganda, which holds a 10% stake.

Our strategic partnerships with the International Fund for Agricultural Development (IFAD) and the National Oil Palm Project (NOPP) are integral to the Vegetable Oil Development Project (VODP). This initiative is focused on empowering smallholder farmers and enhancing vegetable oil production in Uganda, aligning with President Museveni’s vision for sustainable palm plantation development.

As the sole palm plantation company in Uganda, we aim to double production within three to four years, reducing Uganda’s $300 million reliance on palm oil imports through domestic production. We operate in four locations: Jinja, Kalangala, Buvuma, and Sangobay.

Our operations span from upstream oil palm plantations and mills to midstream edible oil refineries and downstream consumer products. Our refineries, with a capacity of 1,500 tons, add value to upstream farming activities. Byproducts are used in manufacturing soap and cooking fat, while edible fat supports bakeries. We prioritize sustainability by recycling palm oil production waste, like fresh empty fruit bunches (EFB), as fertilizer.

In downstream operations, we distribute about 300,000 tons annually across Uganda. Our current production of 45,000 tons of crude palm oil accounts for 20% of the country’s total output.

What expansion initiatives are currently in progress?

The government agreement covers 26,500 hectares, and we’ve initiated a new plantation on Buvuma Island with 2,500 hectares planted, plus an additional 1,500 hectares contributed by small and medium farmers, totaling 4,000 hectares. Another plantation in Sangobay, near the Tanzania border, is underway, covering approximately 8,300 hectares. Palm plantations, known for sustainability, require substantial investments, with an initial cost of about $10,000 per hectare. We adhere to the principle of having a nucleus owned and managed by us, with the land belonging to the government. This model fosters a collaborative public-private enterprise, benefiting the government, the community, and us.

How has the investment journey in Uganda unfolded and are there plans to diversify beyond palm oil investments?

Investing in Uganda’s palm sector with Wilmar, the world’s largest palm farmer, offers unique opportunities. We use our funds to navigate financial challenges, avoiding high borrowing costs, and focusing on sustainability amidst global climate variability, especially rainfall variability. Despite irrigation’s high costs, the government’s offer of an additional 100,000 hectares could make Uganda self-sufficient and even support exports.

For the first time in three years, our plantations are experiencing significant growth. Positive economic signs include low inflation, a stable currency, and strong foreign reserves. Driven by Uganda’s growing economy, we’re expanding into rice cultivation, pending a proposal review by the UIA.

Upgrading and Interconnecting Transportation Infrastructure

Upgrading and Interconnecting Transportation Infrastructure

Hon. Edward Katumba Wamala, Minister of Works and Transport, talks to World Business Journal about plans for upgraded and connected transportation and infrastructure, including integrated transport plans for multimodal connectivity, along with rail and air improvements.

How has Uganda progressed in implementing an integrated transport system to enhance regional infrastructure and connectivity, aligning with its Vision 2040?

We play a crucial role in aligning with the Vision 2040 plan by focusing on establishing an integrated transport system with multimodal connectivity. This means ensuring seamless collaboration between different transportation modes such as railways, roads, waterways, and air travel, to create a cohesive and efficient transport network. Transitioning from formerly siloed sectors, we’ve moved to integrated transport infrastructure services, emphasizing the integration of diverse transport elements for improved efficiency and effectiveness. 

Uganda acts as a vital transportation hub for Congo, Rwanda, and South Sudan. To address the regional needs of East Africa, our primary focus lies in enhancing our infrastructure. We’ve secured a $301 million investment from the African Development Bank Group to revitalize the Kampala-Malaba Meter Gauge Railway (MGR). This initiative involves rehabilitating a 265km track from Malaba to Mukono, extending to Jinja and Port Bell on Lake Victoria. Despite challenges with the Standard Gauge Railway (SGR), efforts to refurbish the MGR are underway to bridge the transport gap while discussions on the SGR continue with Yapi Merkezi.

The railway rehabilitation from Malaba to Mukono, in collaboration with CRBC, is progressing. The final segment from Mukono to Kampala, using a Spanish facility, involves installing a new line with locally manufactured concrete sleepers, expected to link Kampala to Port Bell by June 2024. 

We’re also focusing on enhancing water transport, particularly through Lake Victoria’s inland waterways, aligning with efforts in Tanzania to improve transport systems from Dar es Salaam through Dodoma to Mwanza. The Kampala Flyover Project’s Phase One (Lot 1) is expected to be commissioned soon. Phase Two (Lot 2), extending from Mukwano into the city center and connecting to the railway, aims to efficiently divert traffic, providing smoother routes for commuters from Entebbe to Jinja and beyond. Designs for Lot Two are finalized, pending financial arrangements, with advanced ongoing discussions to secure support.

As part of our strategic initiatives, we’re also planning the construction of additional expressways to bolster connectivity and create opportunities for increased business activity. By leveraging a public-private partnership (PPP) model, our aim is to attract more investors and catalyze a thriving business ecosystem.

Can you provide an update on the latest developments at Entebbe Airport and in the air transportation sector in Uganda?

The expansion at Entebbe Airport is a response to soaring global demand in the airline industry. We’re currently working on multiple projects, including enlarging the runway and constructing a new terminal, which is about 45% complete and expected to be ready by July 2024. Improvements in arrival and departure lounges are also in progress and are anticipated to be completed by December 2023. Our cargo storage capacity has doubled, meeting international standards and boosting our export capabilities, particularly with fresh produce handling passing EU quality tests.

We’re at 98% completion for Kabaale International Airport in Hoima, awaiting terminal buildings and a control tower for full operation. Initially designed for oil transportation, the airport’s plan has expanded to accommodate the region’s future development, including industrial parks, tourism, and agriculture. Our goal is to transition it into an international airport, offering an alternative within Uganda, especially in case of issues at Entebbe Airport, where the current alternatives are Nairobi or Arusha.

Regarding air transportation development, Ugandan Airlines was established as a facilitator for various sectors of the economy, prioritizing tourism and trade. We’ve recently opened routes to Nigeria and Mumbai, anticipating increased tourist arrivals and expanded exports to these destinations. While we encountered initial challenges, the demand is rising, leading us to plan around three flights per week. Our aim is to transform Entebbe into a regional travel hub, and the upcoming second terminal is designed to enhance passenger comfort and streamline travel transitions. We expect improvements to the transit lounge at the old terminal by March 2024, followed by the completion of the new terminal by July 2024.

We also have plans underway for airstrip construction near tourist hubs like Kasese, Kidepo, and Kisoro, aiming to facilitate direct flights for upscale travelers across East Africa. To attract investors, we are exploring PPPs, especially in high-tourist regions like Kisoro.

How do you plan to improve safety in urban areas?

Enhancing safety in urban areas, especially regarding motorbike taxis (boda bodas), poses a challenge. While the city’s management isn’t entirely under my ministry, we’re advocating for a mass transit solution like light rail or bus rapid transit. Implementing such a system could reduce dependency on boda bodas and smaller vehicles, easing congestion during peak hours.

Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa

Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa    

Karugaba Ivan, Founder of Microfuse talks to World Business Journal about Microfuse Stick which drastically cuts the cost and electrical power of Windows PC-type devices and the ambition to drive technology to all communities in Africa.

What is Microfuse Stick and how does it function?

Mirofuse Stick offers the functionality of a Windows PC for just $100. Or $200 with a 19-inch monitor, and IPS, with built-in sound and a mounting system. The stick connects to the screen via HDMI, replacing the bulky CPU and cutting energy use from the usual 200W to 35W watts compared to a typical desktop’s 200W.

We created the prototype in 2016 using Raspberry Pi compute module industrial application developer platform. Progressing from starter kits to more user-specific applications, we refined our hardware design and further enhanced the prototype.

By 2017, we tackled intellectual property concerns and gained recognition by winning the  Multimedia Innovation award at a URSB competition. In 2019, we downsized our device based on user feedback, prioritizing basic computing needs in Uganda. 

Partnering with the Uganda Industry Research Institute in 2020, we launched Version 1, producing 100 units for schools and small businesses gaining crucial insights into user preferences and pricing expectations.

Around mid-2023, Version 2 debuted, featuring Windows OS and improved cooling, receiving enthusiastic feedback even before mass production began. We ramped this up to meet high demand while keeping focus on energy efficiency and ongoing product enhancements.

Is local manufacturing a part of your business strategy for these products?

Our strategy involves the gradual localization of our value chain. Currently, our focus is on local design, creating manufacturing files and bills of materials, and sourcing components from China through contract manufacturing services. 

Our current goal is to internalize processes, with a target of achieving a 40% localization rate. This includes enclosure manufacturing and packaging through injection molding and sourcing packaging locally targeting 6 to 12 months. This endeavor is supported by a government grant from Science, Technology, and Innovation (STI). We’re establishing a facility in Namanve Industrial Park, expected to reduce manufacturing costs by about 30%, aided by favorable policies like tax waiver for production inputs, contributing to overall cost reduction.

What other services does your company provide?

We specialize in product design, having crafted over 30 unique products, with six successfully transitioning to commercial phases. This ranges from addressing challenges faced by motorcycle taxi (boda boda) riders in the e-commerce industry to developing medical devices like a digital stethoscope that enhances diagnostic accuracy. 

Our focus spans education and business. In partnership with the NGO AcTogether Uganda, we’re collaborating to oversee the digitization of transaction records for over 2,700 saving groups, consolidating financial data and facilitating the transition to digital systems.

Within education, our digital platform complements our hardware, allowing students to participate in digital labs, quizzes, assessments, and access study materials, videos, and live lessons. The Global Digital Education Network, a collaboration with Madix Online Education Agency, offers schools discounted access to our hardware and platform.

How do you anticipate the next two years unfolding?

Only 9% of school-going children globally have computer access, while Africa stands at a mere 3%. This underscores the immense potential for expansion.

We foresee significant growth opportunities; expanding our product lines and market reach, aiming for an increase from 1,000 units to 100,000 units in 2024. We also plan to enter additional African markets within EAC. 

Our recent participation in the Qualcomm Make in Africa program, focused on chips and wireless communication devices gave us an eight-month mentorship under  Elliot Levine, a global technology leader and director of Worldwide Public Sector and Education at Qualcomm.

We recently got into the Africa Prize for Engineering Innovation, founded by the Royal Academy of Engineering. Africa’s biggest prize dedicated to engineering innovation, awarding commercialisation support to innovators developing scalable solutions to local challenges. We hope to use this opportunity as a stepping stone to learn, collaborate and raise needed funds.Communicating the potential of hardware innovation has been challenging, despite the rising demand for production in Africa as global labor costs shift. We must train our workforce to seize the opportunities and prepare for the sector’s growth.

KMC Takes the Driver Seat as it Moves into High Gear

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.

EAMV Fulfils Demand in Medical Consumables Sector

EAMV Fulfils Demand in Medical Consumables Sector

Brian Kavuya, Managing Director, East African Medical Vitals (EAMV), talks to World Business Journal about the role it plays in the medical consumables sector and the Buy Uganda Build Uganda policy, and how EAMV plans to expand into the synthetic rubber gloves industry.

How did the partnership that formed East African Medical Vitals (EAMV) originate?

The backstory behind this partnership is quite intriguing. Legacy Group operates across various sectors, including real estate, financing, fast-moving consumer goods distribution and farming. Vvsaol Investments specialises in the import and distribution of medical consumables in Uganda, serving both the public and private sectors. Initially, Legacy and Vvsaol collaborated on joint ventures, sharing resources and proceeds from their respective business activities. However, an exciting idea emerged when the company realised the potential of manufacturing medical gloves. This idea was fuelled by the government’s strong emphasis on local manufacturing through initiatives like Buy Uganda Build Uganda (BUBU) policy and the success story of Cipla Quality Chemical Industries. We recognised an opportunity to contribute to local production in the medical consumables sector.

At the outset, we sought the involvement of established firms to conduct a feasibility study for the glove manufacturing venture, but we found their efforts lacking. Around that time, Asigma Capital, an investment advisory firm, expressed interest in the project. Asigma’s expertise and experience made them an ideal partner. To facilitate this collaboration, we structured a deal that combined cash payments and equity, as raising the required funds for detailed feasibility studies can be a challenge for local investors. This partnership brought together diverse capabilities, including market understanding, financial resources, technical expertise and project management. It allowed us to complete the feasibility study, secure financing and establish EAMV, contributing to the local medical consumables sector.

What were the key steps involved in securing financing, and establishing the manufacturing operation for your medical supplies business?

We began by deciding whether the public or private sector would operate as our primary offtaker, leading to a strategic 10-year government offtake agreement, which unlocked essential financing. We invested in sending 13 Ugandan engineers to Malaysia for hands-on training, enhancing their technical capabilities. For financing, we sent applications to various sources, with the East African Development Bank emerging as our strongest supporter. They provided $6.3m in financing, while the remainder of the initial investment for our plant, totalling around $13m, was invested as equity and local financing for working capital from EcoBank. These funds were allocated for working capital and debt, supporting the growth and development of our business.

What types of gloves do you manufacture, and what is your current manufacturing capacity?

We manufacture surgical and examination gloves and plan to expand into synthetic rubber gloves soon. To reduce reliance on imports, we are investing in rubber tree farming and local chemical production. Our ongoing expansion project, backed by Shs21bn from the Uganda Development Corporation, aims to double our production capacity and reduce operational costs. Currently, our production is 6m pairs of gloves per month, which is equivalent to approximately 70% capacity utilisation. Around 70% of our production serves the government, and we are in discussions to expand these contracts. In the private sector, pricing challenges persist, and we are actively advocating for the implementation of import duties at the East African level to create a more equitable competitive environment.

What are the main challenges that your company has encountered?

Securing long-term financing has been challenging, mainly due to the lack of government support. It is essential for the government to reconsider local bank pricing and investment securing policies, particularly for pioneering investments that require a mix of equity and debt with favourable debt terms.

While we are fully certified by the International Organisation for Standardisation (ISO) for quality and occupational health, safety and environment, finding local certifying bodies which are accredited for the relevant quality standards as well as recognised by major international clients, especially for medical consumables, has been a challenge. This has led EAMV to seek certification from international bodies, such as ISO.

How would you describe the investment climate in Uganda?

The investment environment in the country is quite favourable, offering attractive incentives to investors who have the financial means. However, if you have a great idea but lack the funds, that is where the real challenge arises. The investment landscape is promising, provided you have the financial resources to capitalise on it. Learning from our experiences with development banks, we have seen the importance of prioritising project viability over collateral. Government support in building the capacity of financial institutions would enhance the investment landscape.

CiplaQCIL Accelerates its Growth Plans

CiplaQCIL Accelerates its Growth Plans

Ajay Kumar Pal, CEO, Cipla Quality Chemical Industries (CiplaQCIL), talks to World Business Journal about the bright future that the medical treatment subsector holds, and how the company is backing several promising advancements in pharmaceuticals and biotechnology.

Can you provide us with an update on the company, following the annual general meeting (AGM) in August 2023?

We concluded our AGM in August 2023 where we shared our company’s performance and outlook with our shareholders. Highlights of the AGM included the company’s continued ability to generate profit and sustain delivery of its strategic priorities. Shares of CiplaQCIL, traded on the Uganda Securities Exchange under the ticker, CQCIL has been recently acquired by Africa Capitalworks (ACW). Deploying permanent equity capital in strategically selected sectors across sub-Saharan Africa, ACW effectively became a majority shareholder in November 2023. This change will accelerate implementation of our growth plans and allow us to expand out critical product range and geographical presence in both the public and private sectors.

Patients are at the centre of what we do, and with our vision of access to quality affordable treatments, we will continue to invest in areas which will ensure the availability, accessibility and affordability of quality pharmaceutical products in a sustainable way.

We remain committed to enhancing product accessibility by expanding our portfolio and broadening market reach through both public and private channels within the EAC region, exporting to more than 12 countries. Our reach within the EAC is complimented by our strong regulatory footprint with product registration in 31 countries across Africa.

What has been achieved in the past five years with respect to medicines for HIV/AIDS and malaria?

Over past five years, significant progress has been made in development, accessibility and effectiveness of medicines for HIV/AIDS and malaria. Improved antiretroviral therapy (ART) have led to more potent, tolerable and convenient treatment regimens, enhancing the quality of life for people living with HIV/AIDS. New prevention strategies have been adopted like the use of pre-exposure prophylaxis, especially among high-risk populations. Global initiatives and awareness campaigns in reducing the stigma; increasing testing and improving access to treatment and care for those living with HIV/AIDS; and continuing research to finding a cure and vaccine.

The treatment of malaria has seen significant progress with the World Health Organisation’s approval for use of two vaccines. Development of new malarial drugs and combination therapies has helped combat drug-resistance strains of malaria. Both HIV/AIDS and malaria treatment landscapes have witnessed advancements in research, treatment effectiveness, treatment modalities, prevention strategies and increased global attention.

What lies in the future for the pharmaceuticals and biotechnology subsectors?

The future of the medical treatment subsector holds several promising advancements and transformation. As well, the subsector has been accelerated by Covid-19 and artificial intelligence (AI). Accelerated research has taken place with personalised medicines and treatments tailored to an individual’s genetic makeup and lifestyle, as well as future advancements in biotechnology, namely genome-editing technologies such as CRISPR. Digital health and telemedicine has created accessibility to health care services, especially in remote or underserved areas. AI application will accelerate drug discoveries, with a shift from treatment toward preventive and predictive health care. Global collaboration on health care will continue to increase, with Africa focused on developing its own pharmaceutical manufacturing industry to become self-sufficient.

Overall, the medical treatment subsector’s future will likely be characterised by innovation, individualised approaches to care, improved accessibility and focus on holistic health outcomes. It will require continuous collaboration, investment in research and regulatory adaptability to harness the full potential of these advancements.