South Africa taps Uganda’s Kiira Motors for 820 electric buses

KAMPALA, Uganda — South Africa has tapped Uganda’s Kiira Motors Corp. to supply 820 electric buses in a landmark deal valued at $250 million.

The export agreement marks a major milestone for the state-owned mobility enterprise as it seeks to lead Africa’s transition to electric vehicle manufacturing. Monica Musenero Masanza, the minister of science, technology and innovation, announced the signed contracts yesterday, noting that the deal follows a successful 7,125-kilometer demonstration drive from Kampala to Cape Town late last year.

To fulfill the orders, the government is seeking $143 million in additional funding to support production at the Kiira Vehicle Plant in Jinja. The facility, which sits on 100 acres, was designed to produce nine buses a day with the capacity to scale to 22 units daily as demand grows.

Musenero said the delivery timeframe for the South African orders ranges from six to 12 months. While the corporation continues to localize its supply chain, it still relies on imported automotive steel and specialized components to meet international manufacturing standards.

The deal is part of a broader strategy to produce 30,000 buses for the regional market by 2030. Kiira Motors is working with several partners, including technology firm Golden Dragon, to ensure that 65% of vehicle parts are manufactured locally within the next four years.

In addition to the international contract, the minister noted that domestic transport operators have expressed interest in thousands of units, signaling a shift in the local market toward sustainable energy.

Musenero emphasized that manufacturing these vehicles within Uganda provides a critical alternative to importing foreign-made buses, retaining capital within the local economy and creating industrial jobs.