Digital Number Plate Delays Trigger Billions in Losses for Uganda

Uganda’s ambitious transition to digital number plates is facing severe setbacks, resulting in prolonged delays that are crippling the automotive sector and impacting national revenue. Industry players estimate that billions of shillings in private capital are tied up, with thousands of vehicles and motorcycles unable to be registered and delivered to customers.

Vehicle dealers, importers, and clearing agents report that the persistent delays in issuing these new plates have brought operations to a standstill. At Kainu Investments, over 200 tricycles are parked, awaiting registration, with 100 units fully paid for but undeliverable. “Every unit parked here is capital tied down,” stated Bakyayita Mark David, the company’s Inventory Manager, highlighting the impact on cash flow, increased storage costs, and damaged customer confidence.

The Uganda Clearing Industry and Forwarding Association (UCIFA) confirms these challenges extend nationwide. Their Deputy Executive Director, Bwire Kezekiah, noted that more than 47,000 motorists have been waiting months, and in some cases over a year, for replacement digital plates, despite having paid the required fees. UCIFA estimates the government has already collected approximately Shs7.5 billion in replacement plate fees from these applicants.

Furthermore, over 3,000 new motorcycles are stranded in bonded warehouses, unable to be released to owners. This situation prevents boda boda riders from earning income, forces importers to service loans on idle stock, and burdens businesses with unsellable inventory. UCIFA estimates the government is losing about Shs4 billion weekly in non-tax revenue due to these registration backlogs, with cumulative losses reaching approximately Shs109.6 billion.

Works and Transport Minister Fred Byamukama recently visited the plate manufacturing facility to assess production capacity. While government expresses confidence in future improvements, clearing agents are urging the manufacturer to subcontract production to speed up deliveries and clear the substantial backlog affecting both businesses and the national economy.

Source: Nile Post