The Ugandan government will soon revise its policy on electric vehicle (EV) part imports, gradually reducing incentives to encourage local manufacturing.
This was revealed by the Minister of Science, Technology and Innovation, Dr. Monica Musenero, during the launch of the 2nd edition of the National E-Mobility Expo held in Kampala on Wednesday.
Speaking at the event, Dr. Musenero emphasised the importance of the automotive industry in driving Uganda’s economic transformation.
“Automotive manufacturing has the potential to propel our economy to greatness. We must build internal capacity. This is why our policy direction will soon shift in favor of local parts manufacturers,” she said.
The shift comes as Uganda continues to suffer the consequences of heavy pollution. Kampala ranks 4th in Africa and 15th globally in air pollution, with 13,000 deaths annually attributed to poor air quality. Furthermore, traffic congestion costs the country nearly half a billion dollars in fuel annually.
But Uganda is rewriting this story through Kiira Motors Corporation (KMC), a state-backed electric vehicle manufacturer. According to CEO Paul Isaac Musasizi, the company is scaling up production.
“We invested about $89 million in 2021 and increased that to $160 million by 2024,” said Musasizi. “We are targeting an investment of $1 billion by 2030, with our Jinja plant aiming to produce up to 500,000 electric vehicles by then.”
Currently, the Jinja plant has an annual installed capacity of 2,000 vehicles, with 1,000 units produced in 2024.
Next Media CEO Kin Kariisa also highlighted the media’s role in shaping public perception and policy.
“The media must act as a change agent for e-mobility. Our platforms must inform, influence and inspire change towards sustainable transport,” said Kariisa.
Globally, the e-mobility sector is booming. The market was valued at $603.60 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 28.7% through 2032. The European Union has expressed interest in partnering with African countries like Uganda, which it sees as a “land of great opportunity for electric vehicle manufacturing and a champion of sustainability.”
As the second E-Mobility Expo wraps up, Uganda appears poised to transition from an import-reliant market to a hub for EV manufacturing — with far-reaching implications for jobs, the environment, and regional trade.