The Ugandan local authorities in conjunction with a bus manufacturer will soon launch a vehicle assembly plant worth four million U.S. dollars.

The plant to be constructed in Jinja, 80 km east of Kampala, will initially assemble commercial and industrial vehicles for local market and later expand its business to serve the greater region in east and central Africa.

"This will greatly reduce the time in the production of bus bodies," Fred Bagenda Senoga, managing director of Pioneer Easy Bus Ltd, was quoted by Daily Monitor on Monday as saying.

"This technology allows vehicle dimension integrity and vehicle symmetry," he added.

The authorities in Kampala, Wakiso, Mukono, Mpigi districts and the central government have reportedly throw their weight behind the joint venture which will be the first automotive assembly plant in Uganda.

Senoga said the plant would directly employ over 500 people and create many satellite industries for the manufacture of support components such as brake linings, exhaust pipe systems and springs.

The Ugandan government has been trying to persuade the investors to set up an automobile assembly plant to explore the country's booming auto market currently dominated by imported used cars.

Source: Xinhua