Part 1 of this article can be accessed here. The keynote speaker Edward Hightower CEO of Lordstown Motors opened up the second day and said Africa’s
Part 1 of this article can be accessed here.
The keynote speaker Edward Hightower CEO of Lordstown Motors opened up the second day and said Africa’s cities provide the best use case for EV transition. The Temperatures and Climate are favourable for Electric Vehicles (EVs) and recommends Uganda to focus on the five strategic areas of e-mobility such as Charging, Batteries, localisation of components, software and vehicles fronting key success enablers like, conviction and commitment, leadership and team, time and consistency,
The Board Chairperson PCF Forum, Eng. Barbra Mulwana spoke and said, “this PCF has organised this year’s E-mobility theme to create awareness and buy-in from the key players to drive your excellence’s guidance on championing the E-mobility’s industry. I am confident that the discussions and interactions here will pave the way for positive outcomes and unavailable insights for the sector as well as the way forward and backward linkages.”
In the economist July 18, 2023, titled Tesla’s surprising new route to EV domination Tesla started in 2003, by 2011, it had only made 1,650 EVS. However, they made a bold statement and they said they wanted to become the most compelling car company of the 21st century while accelerating the world’s transition to electrical vehicles, first forward to 2023; Tesla’s Model Y mini-SUV had already sold 466,000 cars in the first Quarter of 2023. Whereas last year, Tesla’s boosted a profit of over 17% off each car. “The question now is whether Tesla can keep growing as fast and as profitably as it has for much longer yet in its latest quarterly earnings on July 19th, it reported margins of 9.6%, even lower than the 11.4% it eked out in the three previous months, as it slashed prices in order to compete with cheaper rivals.
Where is the WHY for Uganda’s e-mobility strategy? It is job creation among others. National Planning Authority (NPA) assessed and reported that 80% of the people to take up these jobs are not available, which challenges us to have the people able to run these industries, and developments, which calls for a linkage for private sector and universities to be able to meet our needs.
While the Permanent Secretary, Secretary to the treasury (PS-ST) Mr. Ramathan Ggoobi made his submissions, he said, “Your Excellency, industrialization lies at the heart of your vision and guidance you have given us in gov’t to promote! Our target in the next ten years is three fold. To make manufacturing contribute at least a third (1/3) of the Gross Domestic Product (GDP) equivalent to 33.3% currently contributes 16%, it should employ 26% of Ugandans but currently employs 9% and third, 50% 0f the exports should be manufactured but currently it is 13% of the exports that are manufactured. And several other dignitaries made speeches especially; Rt. Hon. Nabanjja, Rt. Hon. Rebecca Kadagga, Hon. Monica Musenero, Lt. Gen. James Mugira and others
Also, the Deputy Chairperson Mr. Emmanuel Katongole in his submissions, he highlighted that from the last three retreats, we have categorised all the resolutions into 19 major resolutions where you gave directives, and handed them over to the Hon. Prime Minister who worked with the ministry of Finance. Out of the 19 resolutions, 18 resolutions have been implemented which by any standards is a first class.
While referring to H.E’s recent to travel to Serbia and Russia, he denoted that 99% of his speeches were about business and economy. The meeting with President Putin also was spent talking about how we can develop the Kiira Motors Plant, develop our lithium into batteries, develop own charging systems, process our coffee into finished products. That is the leadership we come to appreciate from you H.E. “Thank you is not enough, Webaale nnyo, webalile Ddaala, Ssebo President, Tweyanziza Tweyanzege, Tusiima Bwongerwa” says Mr. Katongole. What a good lobbyist this businessman is!
He was particularly presenting the resolutions made by the PCF Forum 2023 and these resolutions are;
- Zero (0) import duty and Zero (0) VAT on electric vehicle production materials and charging systems.
- Put in place e-mobility tariff for commercial charging systems.
- Improve human capital and human resource capacity in the automatize economy.
- Any gov’t scholarships should go into areas where we cannot have training locally.
- Enforce regulations and standards to ensure safety and eliminate substandard products in development and use of e-mobility.
- Prioritise the electrification of gov’t fleet to provide an offtake demand of e-mobility.
- A comprehensive e-mobility awareness program to highlight the opportunities of e-mobility.
- Address high energy cost to support manufacturers.
- Explore a single digit interest rate of at least 10 years payment period for affordable financing at UDB.
- Recognise outstanding investors and entrepreneurs through initiatives like Authorised Economic Operator (AEO) programme at URA and giving access to VIP treatment when travelling.
- Review current E.A community common external tariff as it favours importers of wire rods and standardize document application processes.
He concluded with a quote, “Mr. President, Ffe tukwagalannyo, Ebisiggade bibyo” whose literal meaning is; as for us, we love you so much, the rest is up to you.
While the president made his submissions; he started by making reference of his speeches pointing out how the whole of Africa has got a GDP of $2.5 Trillion, smaller than that of India at $3.3T, smaller than Germany $4T, small than Japan $4.2 T, smaller than China $17.96T and smaller than that of USA which is $25.46T. Calling it a big shame to Africa, he blamed it on African leaders and ministers of finance. He further pointed out that, that is what brought them to the bush where they came up with the 10-point programme, and among them, number five (5) was exactly this; building an economy which is integrated (vertically and horizontally), independent and self-sustaining.
He acknowledged that we have been able to achieve some success and that is how the economy has grown 37 times from the beginning. Though folks might argue, that whereas this is good progress, how would we compare ourselves to economies like Korea that have grown to about 400 times in even a much shorter time of 27 years from 1996 as opposed to Uganda that is basing the progress on 37 years from 1986.
He further said amidst some challenges from his members of parliament and politicians that have weaponised their speeches to affect progress, the dairy industry has grown from 60,000 litres to 500,000 litres a day after successfully lobbying from Samia – the indian who supported the Milk plant in Bugolobi. We are now at 5.3 billion litres from 200 million litres in 1986 of liquid milk and other milk products like ultra-heated milk, powder milk, butter, cheese, and Kasen protein sold to USA.
He said, he wants the current economy to take a leap from UGX 55 Trillion to UGX 500 Trillion and he believes that from the ideas shared by Dr. Musenero, it is possible through persuading homesteads to join the money economy. This will result to much more raw materials that can be transformed through value addition for much more returns, expanding the service sector, knowledge economy where you use skills and innovation to produce products. He further blames the ministry of finance and auditor general who fail to finance and assess opportunity cost respectively giving an example of how we export a single kilogram of coffee beans earning $2.5dollars as opposed to earning about $40 dollars after processing.
As for the resolutions, he was so kind to the CEO’s directing the prime minister to have the list received for discussion so each item is dealt with and can later be returned to the CEOs in a period of 3 weeks.
For some items that are clear like the Offtake of e-mobility, government would buy them for the schools, government institutions and the army.
On the data sharing, he directed the sharing of data to be implemented and recommended CEOs to guide how it should be done.
The UDB lending below 10% can be done given our inflation rate has gone down.
The VIP status is simple; you may guide us well on who qualifies for this kind of VIP treatment etc.
Lastly, the PCF 2023 was closed off with a couple brief activities like, the president signing of his commitment of participation on the regional PCF ahead and Trade Link Clinic, Pictorial moments with different categories of people and closing off the forum with the Busoga Anthem, Regional Anthem and the National Anthem.
The great Masters of Ceremony of the day was Mr. Maurice Mugisha.
The previous part 1 of the article can be can be accessed here
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