Uganda turns to Tanzania for electric buses market

Currently, the Kampala-based KMC operates a smaller facility that has produced over 40 electric buses, now serving major Ugandan cities such as Kampala, Entebbe, and Jinja. The new KMC plant, designed to produce up to 250 electric vehicles per month, will have an annual capacity of 5,000 vehicles, contributing to zero carbon emissions. The Ugandan government envisions this plant as a regional asset, hoping that neighboring countries like Tanzania will join in leveraging its potential.

One of the primary areas of interest for Uganda is attracting Tanzanian investors to set up electric vehicle manufacturing operations within Uganda. This move is seen as a crucial step toward fostering regional integration and enhancing technological collaboration. The Ugandan government believes that Tanzanian investment in this sector could help develop a more robust and sustainable e-mobility industry in the region.

Market sharing is another significant aspect of the proposed collaboration. Tanzania’s need for accessible public transport aligns with Uganda’s ongoing negotiations to provide electric buses. The potential integration of these buses into Tanzanian cities’ transport systems represents a significant step forward in promoting sustainable urban mobility. Ms. Msanza underscored the potential benefits of shared expertise between the two nations, noting that such collaboration could reduce reliance on imports and strengthen regional supply chains.

Ms. Msanza also highlighted the important role that Tanzanian universities and innovators could play in manufacturing components for electric buses. She explained that this local collaboration could bolster regional supply chains and reduce dependence on imports, making the region’s e-mobility sector more self-reliant.

“The mobility industry, valued at $15 trillion in 2017, is expected to exceed $26.6 trillion by 2030,” Ms. Msanza stated. “As the vehicle market in sub-Saharan Africa grows, with an anticipated rise from 2.7 million vehicles in 2021 to 58 million by 2040, transitioning to e-mobility is crucial for reducing greenhouse gas emissions.”

While acknowledging the challenges of shifting from traditional combustion engines to electric alternatives, Ms. Msanza expressed optimism about the long-term benefits of e-mobility. “Understanding will grow over time as the advantages of reduced carbon emissions become more apparent,” she said.

Dr. Shamim Matovu, a business anthropologist and consultant from Uganda, also emphasized the importance of knowledge management and quality standards in achieving competitive regional markets. She stressed the need to learn from other African nations already exporting to Europe and investing in local research as critical for success.

Dr. Matovu added, “This e-mobility conversation should be inclusive. Knowledge about tackling climate change and the benefits of e-mobility should be accessible to everyone, not just the educated few.”

The national secretary of the Tanzania Bus Owners Association (Taboa), Mr. Joseph Priscus, recognized the significant benefits Tanzania could gain from the e-mobility project. He noted that e-mobility reduces fuel costs, a crucial factor given fluctuating fuel prices, and praised Uganda’s efforts in advancing the sector. Mr. Priscus expressed confidence that other countries in the region would also benefit from the expanded value chain, further strengthening East Africa’s e-mobility sector.