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Uganda military (NEC) to construct car assembly plant at Jinja

KAMPALA Uganda (Xinhua) -- The Ugandan military has signed an agreement with state owned Kiira Motors Corporation (KMC) to construct a car assembly plant in the eastern part of the country.

KMC in a tweet on Thursday said the business arm of the military, National Enterprise Corporation (NEC), signed the memorandum of understanding that will see the military construct Kiira Vehicle Plant start-up facilities at the Jinja Industrial and Business Park.

The agreement was signed by KMC’s chief executive Paul Isaac Musasizi and NEC’s Maj. Gen. James Mugira.

The military already assembles infantry fighting vehicles in Jinja.

The agreement comes days after the road testing of the Kiira EV, the company’s latest hybrid sedan vehicle.

Uganda last year resolved to start the commercial production of motor vehicles after the process had stalled for years.

Cabinet in April 2018 directed the ministry of finance to set aside over 5.6 million U.S. dollars this financial year to kick start the construction of an assembly plant.

The idea of Uganda manufacturing cars started in 2011 when students at the country’s Makerere University built the Kiira EV (electronic vehicle) and Africa’s first solar-powered bus in 2016.

According to the Ugandan government, the car assembly project would stimulate investment in the production of among others car components, creating over 2,000 direct jobs and 12,000 indirect jobs.


Uganda government requests submission of
claims over South Sudan payment arrears

KAMPALA Uganda (Xinhua) -- Uganda’s Ministry of Trade, Industry and Cooperatives requested companies and individuals who supplied goods and services to the South Sudan government to submit their non-payment claims.

The ministry in a notice published on Tuesday said the non-payment claims must be submitted to the ministry no later than Jan. 31.

"Please note that claims for the period after December 2016 will not be considered," the notice said.

Ugandan traders supplied goods and services to the South Sudan government but were not paid due to the outbreak of conflict in December 2013.

The traders then petitioned the Ugandan government for its intervention to save their businesses.

The debt owed to the traders totaled to 41 million U.S. dollars, according to Uganda’s parliamentary committee on national economy.

The two governments entered into a mutual agreement which could see Uganda clear the debt and treat it as a loan to the government of South Sudan.


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