Uganda Seizes Opportunity in Electric Mobility, Aiming to Shift from Consumer Market to Manufacturing Hub

Strategic Insights -

Uganda's journey towards electric mobility began in 2011 at Makerere University, where students and lecturers designed and assembled the Kiira electric vehicle. This extracurricular project quickly gained momentum, becoming a government-backed initiative under the Presidential Initiative on Science and Technology. The ecosystem has since attracted new investors, particularly in two-wheelers and electric bicycles, creating a thriving industry that is reversing Uganda's trend of importing over $800 million worth of vehicles and $2 billion worth of fuel annually.

Key Takeaways:

  • Uganda has set ambitious targets for local assembling, battery production and recycling, electrification of public transport, establishment of a national charging network, skill development and human capital enhancement, supportive policy frameworks, and increased adoption of electric vehicles through its national e-mobility strategy.
  • The country has an installed assembling capacity of up to 10,000 electric vehicles annually, with Kiira Motors having deployed 31 electric buses and more than 12,500 electric motorcycles and 1,500 electric bicycles, supported by over 390 battery swapping stations.
  • The growth of the electric mobility sector has created over 15,000 direct jobs in assembling, energy, and operations, with more than $180 million invested in the sector, of which 70% is from the government, and local content now stands at 40%.
  • The government has provided incentives, including a 10-year income tax holiday for manufacturers, VAT exemptions for locally made electric vehicles and charging stations, and import duty waivers on parts and components, to foster an enabling environment for the industry.
  • Despite challenges such as a shortage of skilled workers and limited charging infrastructure, the opportunities in the sector are significant, including the potential for local manufacturing, recycling, and repurposing of batteries, and the digital potential of connected vehicles for services like cashless ticketing and real-time fleet tracking.
  • The future of public transport in Kampala is being addressed through the development of high-quality, reliable, and appealing services that encourage people to use them, with a model that integrates taxi operators into the transition rather than sidelining them.

Statistics:

  • $800 million: The worth of vehicles imported into Uganda annually.
  • $2 billion: The worth of fuel imported into Uganda annually.
  • 10,000: The number of electric vehicles Uganda has an installed assembling capacity to manufacture annually.
  • 31: The number of electric buses deployed by Kiira Motors on the roads.
  • 12,500: The number of electric motorcycles available in Uganda.
  • 1,500: The number of electric bicycles available in Uganda.
  • 390: The number of battery swapping stations available in Uganda.
  • 15,000: The number of direct jobs created in assembling, energy, and operations.
  • $180 million: The amount invested in the electric mobility sector in Uganda.
  • 70%: The percentage of investment in the sector that comes from the government.
  • 40%: The local content in the electric mobility sector in Uganda.
  • 80%: The improvement in air quality in Kampala during the Covid-19 lockdown, highlighting the significant contribution of road transport to pollution.

Sources:

  • STI Secretariat
  • Kiira Motors Corporation
  • Makerere University
  • Presidential Initiative on Science and Technology
  • Uganda Taxi Owners Federation (UTOF)
  • Uganda Development Bank
  • E-mobility Expo 2024