By Fidel Boy Leon
Uganda has entered a defining phase in its industrial transformation, one where clean energy, sustainable transport, and responsible manufacturing are no longer just policy ideals, but actionable strategies.
The government’s latest move to offer tax incentives for electric and hybrid motorcycle assembly marks a pivotal moment in shaping the future of mobility, green innovation, and local enterprise.
This is a signal that Uganda is ready to reimagine how it builds, moves, and manufactures in the 21st century.
Announcing the policy at a consumer awareness campaign hosted by Honda by Markh Automobile Uganda, State Minister for Trade, Industry and Cooperatives, Hon. David Bahati, emphasised that the government is now actively supporting local investors in the electric vehicle (EV) space.
“We are supporting people like Maria, who are establishing assembly plants here in Uganda, by giving them tax holidays and other incentives,” Bahati said. “Those dealing in electric bike assembly will benefit—especially if they meet the required environmental and manufacturing standards.”
The message is clear: Uganda wants to become a hub for EV innovation in East Africa. With boda bodas serving as the backbone of urban transport, electrifying this sector can drastically cut emissions, reduce noise pollution, and foster high-value jobs in mechanical and battery engineering.
Simultaneously, environmental taxes on older, high-emission motorcycles are being introduced, reinforcing the government’s twin-track approach of disincentivising pollution while rewarding innovation.
The Ministries of Works and Transport and the Kampala Capital City Authority (KCCA) are working hand in hand to roll out regulations that will first streamline operations in the capital before scaling across the country.
This structured rollout ensures that policy doesn’t just look good on paper, but delivers real, visible change in the streets of Kampala and beyond.
Such a synergy between environmental policy and industrial growth is the kind of strategic alignment Uganda needs as it positions itself for a sustainable, tech-driven future.
In addition to fully electric motorcycles, the government is also welcoming hybrid models (those that run on both electricity and petrol) as practical alternatives for markets still building EV infrastructure.
This flexible approach shows a nuanced understanding of the local context. While the global transition to clean energy is urgent, successful transformation depends on adapting to present realities, especially in transport-reliant economies like Uganda’s.
But even as the country moves toward cleaner manufacturing and responsible assembly, a persistent threat looms: counterfeits.
During the same stakeholders’ engagement, Maria Namusoke Kamoga, Managing Director of Markh Automobile Uganda, sounded a stark warning.
“We are being flooded by counterfeit goods. It’s costing us significantly—and it’s costing the community even more. Counterfeit products keep people in poverty—you end up buying the same item repeatedly without progress.”
Kamoga’s message cuts to the heart of Uganda’s industrial dilemma. Without quality control and strict enforcement of trade regulations, even the most promising policies risk being undermined by a flood of substandard goods that erode consumer trust, stunt innovation, and trap communities in cycles of economic stagnation.
She called on the government to urgently strengthen its trade policies and enforcement mechanisms, and rightly so. If Uganda is to lead in sustainable mobility, it must also lead in protecting quality, innovation, and ethical enterprise.
The journey to a cleaner economy will not be instant. But this move, supporting e-bike assembly and regulating harmful imports, is a strong step forward. It demonstrates what good governance looks like when it’s responsive, forward-thinking, and inclusive of both small entrepreneurs and national industries.