Uganda is taking steps toward a low-carbon future with a new package of tax incentives aimed at accelerating the local assembly of electric motorcycle startups.
Evelyn Anite, the country’s State Minister for Investment disclosed this in a recent announcement seen by Techparley.
According to Evelyn, the initiative is part of a broader climate-conscious agenda designed to cut emissions, reduce fossil fuel dependency, and stimulate green industrialisation.
“Under the new guidelines, companies assembling electric two-wheelers domestically will be exempt from paying import duties and value-added tax (VAT) on parts and components required for their operations,” the statement read.
What This Means
Evelyn says the new tax policy positions Uganda to become a serious player in Africa’s electric vehicle (EV) ecosystem. Rather than focusing on imports, the country is aiming to build a supply chain rooted in local assembly, infrastructure development, and job creation.
The government is also offering a five-year income tax holiday to new entrants in the electric mobility sector, hoping this will attract local and foreign investment in clean transport technologies, according to Evelyn.
She added that the measures are key to Uganda’s National E-Mobility Strategy, launched in 2024, which seeks to build the country’s capacity for manufacturing and deploying electric vehicles.
Why It Matters
Transport is one of the fastest-growing sources of greenhouse gas emissions in Uganda. By encouraging local electric motorcycle startups, experts say Uganda can cut its carbon footprint while also reducing its fuel import bill.
Electric mobility firms which operate a growing network of battery-swapping electric motorcycles across the country also stand to benefit significantly from the move, industry sources said.
By eliminating the major tax barriers that have historically hindered growth, Uganda is now creating an easy and viable business model for electric motorcycle startups at scale.
Uganda’s push to incentivise local electric motorcycle assembly comes at a time when Africa’s e-mobility market is gaining momentum.
Across the continent, the electric two-wheeler market is projected to grow at an annual rate of 18.7%, with expected sales of up to 820,000 units by 2025 and nearly 5 million by 2040.
Uganda’s own market is warming up, with electric motorcycle startups like GOGO, Spiro, and Zembo already providing thousands of electric boda bodas supported by battery-swapping stations.
According to analysts, this shift aligns with broader global trends in climate action, where nations are prioritising domestic manufacturing of clean technologies to ensure resilience, affordability, and sustainability.
Green Mobility as Industrial Policy
Beyond the tax relief, the National E-Mobility Strategy also outlines a broader roadmap for electric transport.
The government plans to invest in charging infrastructure, roll out skills training programmes, and establish clear regulatory standards for locally assembled e-motorcycles.
These efforts, analysts, say are expected to create an end-to-end ecosystem supporting both production and adoption.
With the right execution, experts believe Uganda’s electric motorcycle strategy could become a model for climate-smart industrialisation in Africa, where economic development and environmental sustainability move in tandem.
Talking Points
Uganda’s introduction of tax incentives for electric motorcycle startups is a bold and timely move that aligns industrial development with urgent climate goals. By targeting local assembly rather than just imports, the government is making a strategic investment in long-term sustainability and self-reliance.
This policy directly addresses the twin challenges of high emissions from petrol motorcycles and the country’s growing youth unemployment. Local production means more green jobs, skills development, and domestic value retention, all while cutting carbon.
At Techparley, we see this as a foundational step toward building an inclusive and climate-smart mobility ecosystem in East Africa, one that reduces dependency on fossil fuels and leverages Uganda’s largely renewable energy grid.
However, sustained impact will depend on ecosystem readiness. Infrastructure for battery swapping, access to affordable financing, and technical support for local assemblers will be critical for the strategy to take hold and scale meaningfully.
With strong follow-through, this programme could position Uganda as a leader in green mobility under the African Continental Free Trade Area, offering a blueprint for other nations seeking to align climate goals with industrial growth.
