By Wadulo Arnold Mark
KAMPALA — As Africa’s e-mobility sector accelerates, the continent finds itself at a crossroads. As of May 2025, there are at least 30,000 active electric vehicles (EVs) across the continent, with electric two-wheelers growing at a staggering 38% year-over-year. However, industry analysts warn that without binding legislative frameworks, this momentum could stall.
Current projections suggest that rolling out electric motorcycles at scale across just five key African markets will require between USD 3.5 billion and USD 8.9 billion in asset financing and infrastructure. If regulation remains weak and implementation is left to the whims of annual administrative policy, Africa risks becoming a dumping ground for obsolete internal combustion engine (ICE) technology while missing out on the global shift to zero-emission standards by 2035.
In Uganda, the government has signaled its intent to lead through the FY 2026/27 budget, where EVs remain largely exempt from taxes to stimulate domestic manufacturing and local assembly. Under the current fiscal regime, fully built EVs imported into the country face a standard 25% import duty. Conversely, businesses focusing on local assembly enjoy a competitive edge through major relief packages. These include an exemption from the 18% Value Added Tax (VAT) on electric vehicles, parts, and charging equipment manufactured locally, as well as Stamp Duty relief for companies meeting local employment and raw material quotas. Furthermore, assemblers are eligible for significant corporate income tax holidays and import duty waivers on batteries and production inputs.
Despite these incentives, a high-level summit held at Hotel Africana on June 4, 2026, highlighted a structural vulnerability in Uganda’s strategy. Gathered under the theme “Electric Vehicles in Uganda: Powering the Nation’s Green Mobility and Renewable Energy,” experts under the Uganda Transport Round Table (NTR) argued that tax waivers are merely administrative tools that lack the permanency of law.
Mr. Mwanje Gideon, a legal scholar and founder member of Uganda’s Vision 2100+, warned delegates that relying on shifting policy guidelines creates “dangerous uncertainty” for investors. “It is one thing to have a great idea,” Mwanje stated. “But a great idea that is not regulated is a dangerous idea. Without regulatory safeguards, corruption and ill-intentioned actors will exploit the vacuum”.
The consensus from the roundtable which included representatives from Kiira Motors and Spiro Motorcycles is that Uganda requires a dedicated Electric Vehicles Act. Such a law would go beyond temporary ministerial waivers by legally anchoring battery safety protocols, quality controls, and a predictable framework for grid management and public charging infrastructure.
While Uganda currently boasts an estimated 3,200 EVs trailing only Tanzania and Kenya in the region the lack of a binding legal backbone could challenge its trail-blazing path. To secure the projected USD 800 million private investment pipeline over the next five years, Uganda must transition from “administrative grace” to enforceable, statutory certainty.
