USD 160 Million Invested In Uganda's E-Mobility Sector

Over USD 160 Million was invested in twelve (1companies in the E-Mobility Ecosystem for the period 2018-2024 in the areas of Research & Development, Manufacturing and Charging Infrastructure says the Uganda E-Mobility Outlook Report 2024.   

The report by the Ministry Of Science, Technology and Innovation says seventy percent of the investments were provided by the Government of Uganda.

Minister, Science, Technology and Innovation, Monica Musenero in her forward in the report notes that   “With our intentional fiscal and non-fiscal interventions, we have attracted investment of over USD 160 Million and built the nation’s capacity to produce up to 10,000 Electric Vehicles annually with up to 40% local content.”

There is total investment commitment from the Private Sector of USD 800 Million over the next five (5) years said the  report released ahead of the National Science & Technology Week.   

The National Science & Technology Week 2025 will showcase the progress made by STI towards igniting the qualitative leap of Uganda’s economy. Taking place in Kololo, the exhibition will demonstrate product market fit for Ugandan products.

The Uganda E-Mobility Outlook Report is an annual publication that reports on recent developments in E-Mobility in Uganda. It is developed with the support of members of the Inter-Ministerial Technical Taskforce on E-Mobility and Uganda’s E-Mobility Ecosystem.   

The report said the number of Electric Motorcycles produced in Uganda per year grew from thirteen (13) in 2019 when production commenced to 2,795 in 2024, specifically growing by 139% between 2023 and 2024.     

It said the the cumulative Electric Motorcycles that have been produced since 2019 are 4,254 from key players that include Gogo Electric, Zembo, Spiro and Redvers.

The report reveals that Uganda’s Full Electric and Hybrid Electric Vehicle Stock (excluding Electric Two- and Three-Wheelers) grew from 2 units in 2019 to 1,127 units in 2024 with 88% of these vehicles registered in 2024. 8% of these vehicles were Fully Electric Vehicles (FEV), 2% were Plug-in Hybrid Electric Vehicles (PHEV) while 90% were Hybrid Electric Vehicles (HEV). SUVs and Hatchbacks constituted the biggest share of the Electric Vehicle Stock across all categories.

This E-Mobility Outlook Report provides a review of Uganda’s progress, as of December 2024, in building a globally competitive and sustainable E-Mobility ecosystem. It tracks key milestones in line with the National E-Mobility Strategy priorities and targets.     

With over 5,000 electric motorcycles and 27 buses already on the road with up to 40% local content and set up charging infrastructure across the country of The National Science & Technology Week 2025 will showcase the progress made by STI towards igniting the qualitative leap of Uganda’s economy.

  

Uganda’s National E-Mobility Strategy, published on 31st October 2023, and represents a convergence of minds, expertise and unwavering commitment by government and private sector players to advance Uganda’s transition to E-Mobility. 

The strategy targets to position Uganda as a net source of E-Mobility tools and solutions in the region to reduce dependence on imports and improve the wellbeing of Ugandans. 

The Strategy’s vision is Uganda’s full transition to E-Mobility in public transport and motorcycles by 2030 and passenger vehicle sales by 2040.     

Local Content in EV Industry 

The Local Content for locally produced Electric Vehicles stood at 21% for Electric Buses and up to 40% for Electric Motorcycles in 2024. The country had built capacity to produce Lithium-Ion Battery Packs, Auxiliary Batteries, Tyres & Tubes, Oil & Fuel Filters, Air Cleaners, Fasteners, Wipers, Side Mirrors, Electronics, Wiring Harnesses, Lubricants and Automotive Paints with these mainly serving the after-market.   

The localization of the EV Battery and Battery Energy Storage Systems presents an opportunity for significant value addition in the E-Mobility Value Chain. 

The National E-Mobility Strategy targets a fully integrated domestic battery manufacturing and recycling value chain producing over 1GWh of batteries annually by 2040. 

Uganda had a combined installed production capacity of 0.12GWh of Lithium-Ion Battery Packs in 2024 by key players including Gogo Electric, Soleil Power and Zembo, mostly serving the Electric Motorcycle segment and other Battery Energy Storage Systems. 

Annual production of battery packs for E-Mobility grew from 0.14MWh in 2019 to over 25.89MWh in 2024, with a 167% growth from 2023 to 2024.   The Ev Statistics 

Electric Bus Mass Transit System E-Bus Xpress, Uganda’s first Electric Bus Mass Transit service provider, launched in November 2024 operating seven Kayoola EVS Electric Buses from Kiira Motors Corporation on three routes: Jinja-Iganga, Jinja-Mutai and Jinja-Mbiko. 

The pilot of the service is fully funded by the Government of Uganda through the Science, Technology and Innovation Secretariat and preparations are underway to scale operations to other cities in Uganda. 

FreedomEV, an E-Mobility start-up, launched electric commuter vans in Kampala offering a sustainable alternative to the existing 14-seater Internal Combustion Engine (ICE) commuter vans. The company was operating a fleet of two vans with a hub at the Bwaise Transit Terminal.

Electric Bicycles Electric Bicycle production in Uganda started in 2023 with 25 units by Karaa growing over 17-fold to 440 units produced in 2024 by Karaa, eBee and Harakka.   

Uganda’s interventions towards the promotion of E-Mobility are guided by the Energy Policy for Uganda 2023 and the National E-Mobility Strategy 2023.     

The Government of Uganda lays out strategies in the Energy Policy for the promotion of clean mobility and energy efficiency in the transport sector and for the facilitation of related infrastructure.       

The E-Mobility Strategy highlights the key targets along the identified priority areas including a schedule of fiscal and non-fiscal incentives that are to be put in place to facilitate the transition to E-Mobility. 

Government of Uganda in 2024 had put in place the following fiscal incentives to promote the adoption of E-Mobility in line with the National       

E-Mobility Strategy priorities. Ten-Year Income Tax Exemption for manufacturers of Electric Vehicles, electric batteries or Electric Vehicle charging equipment or fabricators of the frame and body of an Electric Vehicle.       

Value Added Tax Exemption for the supply of Electric Vehicles locally manufactured or supply of frame and body of Electric Vehicles locally fabricated.       

Value Added Tax Exemption for the supply of Electric Vehicle charging equipment or  supply of charging services of an Electric Vehicle. 

Excise Duty Exemption for construction materials of a manufacturer of an Electric Vehicle, electric battery, electric charging equipment, or a fabricator of the frame and body of an Electric Vehicle, who meets specific strategic investment criteria.      

Stamp Duty Exemption on specific instruments executed by a manufacturer of Electric Vehicles, electric batteries, Electric Vehicle charging equipment, or fabrication of the frame and body of Electric Vehicles, who meets specific strategic investment criteria.

0% Import Duty for production materials for Electric Vehicles and 10% Import Duty for  production materials for Electric Motorcycles.