UGANDA’S JOURNEY TOWARDS BUILDING THE E-MOBILITY SECTOR

As global conversations on climate change and sustainability gain momentum, Uganda is making a compelling case to lead the transition to sustainable and innovative e-mobility solutions.  

Gifted with rich biodiversity, natural resources, and breathtaking landscapes, and backed by a comprehensive National e-mobility strategy and proactive government policies, Uganda is positioning itself as a pioneer in creating sustainable transportation solutions, reducing greenhouse gas emissions, and promoting domestic value addition. 

Spearheading this transformation is Kiira Motors Corporation, an entity driving the nation’s bold move towards sustainable and cutting-edge automotive innovation by manufacturing electric vehicles (EVs) tailored to the needs of Ugandans, with support from the Science, Technology, and Innovation Secretariat (STI) under the Office of the President, alongside other partners. 

E-mobility, or electric mobility is defined as the use of electric vehicles (EVs) powered by batteries or hydrogen fuel cells. The sector encompasses a wide range of vehicles, from light-duty automobiles to medium- and heavy-duty electric vehicles, as well as electric micro-mobility devices and transit vehicles or motorcycles.   

To date, the global e-mobility sector is rapidly expanding, with the market projected to surge from USD 280 billion in 2021 to an astounding USD 1.5 trillion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 27.2%. However, this growth comes with significant environmental costs, as the mobility sector is a major contributor to greenhouse gas emissions. In Africa, transportation accounts for about 10% of total emissions, and as sub-Saharan Africa’s vehicle market expands—from 25 million vehicles in 2021 to over 58 million by 2040—the need for sustainable alternatives becomes increasingly urgent. 

Why the adoption of e-mobility? 

Traditionally, the urban public transport landscape in Uganda is dominated by two-wheeler boda-bodas (motorcycles) and aging 14-seater Matatus (repurposed cargo vans). While these vehicles are integral to the country’s transport system, they present challenges, including high energy costs, maintenance expenses, limited product safety and quality, and low ownership rates. 

Hence the adoption of e-mobility offers a promising solution, presenting an opportunity to transition to non-polluting, efficient, and cost-effective transportation options.  

In his State of the Nation Address on June 6th, President Yoweri Kaguta Museveni emphasized the need for this shift, highlighting that moving from petrol to electric vehicles as the most sustainable path forward, with Uganda’s goal to fully transition to electric vehicles within the next 20 years, marking a significant step toward a greener future. 

This financial year, the government of Uganda made a decisive move to prioritize e-mobility as a key driver of economic development. This strategic focus includes a substantial allocation of UGX 32.5 billion to Kiira Motors Corporation, aimed at fully operationalizing the electric vehicle (EV) plant. 

Alongside this financial support, the government has introduced significant tax exemptions for suppliers of electric motorcycles, vehicles manufactured or fabricated in Uganda, as well as their respective charging stations and batteries. This policy shift is designed to facilitate the growth of e-mobility and make electric cars and motorcycles more affordable for Ugandans.  

Benefits and opportunities for this transition  

Uganda’s widespread adoption of e-mobility is positioned to catalyze a significant transformation in the nation’s economy and social fabric. By embracing this shift, Uganda can substantially contribute to its Nationally Determined Contributions (NDCs) and reduce its carbon footprint by up to 25% by 2040. Moreover, transitioning to cleaner energy solutions will lessen the country’s dependence on fuel imports and fossil fuels.

Research indicates that even at low penetration rates, the uptake of electric vehicles can improve air quality and reduce asthma-related or other respiratory emergency room visits, helping mitigate the high health burden of  in Uganda and reducing the over 13,000 deaths attributed to air pollution annually. 

Additionally, developing a robust domestic e-mobility value chain is expected to spur green industry growth, creating over 42,000 direct jobs for Ugandans. These jobs will span the entire value chain, from research and development (R&D) to product development, manufacturing, sales, and maintenance, requiring new skills to support the rollout of electric vehicles.  

For vehicle owners and operators, the transition to electric vehicles offers lower maintenance and operational costs. To put this into perspective, the total cost of ownership of an electric vehicle, including the purchase price, maintenance, and operation costs, is approximately 60% of that of a diesel equivalent. The cost of energy for electric vehicles is 20-22% of the petrol or diesel equivalent, though the initial purchase cost remains higher. However, as e-mobility technology advances and the adoption of electric vehicles increases, purchase costs are anticipated to decline rapidly. 

Despite these numerous benefits and efforts, adopting e-mobility in Uganda is not without challenges. Key hurdles include policy alignment, establishing operating standards and regulations for electric vehicles and related technologies, infrastructure development, and the need for strategic frameworks to promote domestic manufacturing and facilitate nationwide uptake of electric vehicles continue to deter Uganda’s efforts towards achieving a fully functioning e-mobility sector.  

Uganda’s journey toward e-mobility is poised at accelerating pathways for a sustainable green future. The National E-Mobility Strategy represents a transformative shift in transportation and energy consumption, with the potential to contribute to national development. Through coordinated efforts between the government and the private sector, it is essential to create reliable public charging points and fast-charging stations across the country, catalyzing the growth of electric vehicles and reducing their prices.