Uganda Boosts Local E-Mobility with Five-Year Tax Exemption on Electric Motorcycles
Uganda's government has announced a new initiative to boost local production of electric motorcycles. The National E-Mobility Strategy, launched in 2024, includes a five-year tax exemption for local assemblers of e-motorcycles. This move aims to reduce the country's reliance on internal combustion engine motorcycles and promote cleaner alternatives, thereby reducing greenhouse gas emissions.
The new tax policy, part of Uganda's National E-Mobility Strategy, focuses on local manufacturing rather than just import facilitation. Electric mobility firm Spiro is expected to significantly benefit from these incentives and scale up local assembly. By exempting companies from import duties and VAT on parts and components, the government aims to make domestic assembly more viable.
The strategy also includes plans for infrastructure development, regulatory support, and skills training to build an end-to-end local ecosystem. This long-term vision seeks to make Uganda a hub for green mobility in East Africa. By focusing on domestic assembly, Uganda could capture more value from the e-mobility supply chain, reduce its import bill over time, and strengthen its position for exporting within the African Continental Free Trade Area (AfCFTA).
The government's new tax incentives are set to accelerate the local assembly of electric motorcycles in Uganda. This move, part of the National E-Mobility Strategy, is expected to benefit companies like Spiro and promote cleaner transportation alternatives. By fostering a local ecosystem for e-mobility, Uganda aims to reduce its reliance on fossil fuels, decrease emissions, and enhance its trade position within Africa.
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