With a reliable power supply and abundant deposits of key minerals, Tanzania has the potential to become a major player in the burgeoning electric vehicle industry value chain thanks to Uganda's groundbreaking electric bus manufacturing plant, the first in East Africa.
Kiira Motors Corporation, Uganda's state-owned EV manufacturer, sees Tanzania as a key partner because of its vast resources, including iron, coal, and strategic minerals such as nickel, copper, and cobalt, which are critical for EV battery production.
"We are the first in Africa to establish a factory manufacturing electric vehicles, providing an opportunity for all African countries to supply raw materials to us," KMC Chief Executive Officer Paul Musasizi told a Tanzanian delegation, highlighting the potential for regional cooperation.
Tanzania's recent investments in hydropower and its mineral wealth have further strengthened its position as a potential supplier for the burgeoning EV industry in neighboring Uganda.
The delegation of Tanzanian journalists and transport sector stakeholders who toured the KMC factory, which has a production capacity of 5,000 vehicles per year, were impressed by its operations and recognized the potential for Tanzania to benefit from Uganda's EV initiative.
"This plant is a great opportunity for the EAC countries and the continent at large," said Priscus Joseph, secretary of the Tanzania Bus Owners Association. "It will greatly reduce production costs so that we can go along with the ongoing Standard Gauge Railway (SGR) investment that has started impacting the country’s transportation sector."