Uganda: Government Urged to Convert Its Scrap Cars Into Cash

25 October 2023

Experts have urged government to collaborate with local authorities to manage the disposal of irreparable vehicles currently stored in local government yards.

Richard Ayesigwa, a research fellow at the Advocates Coalition for Development and Environment (ACODE) Center for Budget and Economic Governance, asserts that this strategy could not only boost government revenue but also enhance environmental sustainability by reducing scrap metal waste.

Ayesigwa proposes utilising the proceeds from scrapping these vehicles to repair those still in fair condition, making them usable for service delivery in the interim.

Service delivery in multiple local governments has suffered due to a lack of transport for local government officials to carry out their duties. This predicament has arisen because the Ministry of Finance, Planning, and Economic Development has ceased purchasing new vehicles.

"One of the challenges affecting government vehicles is poor maintenance. The government frequently acquires vehicles without a clear maintenance plan, resulting in many of them being immobilized due to minor mechanical issues."

He highlights the potential of establishing regional repair workshops through public-private partnerships as a means of maintaining government vehicles in good condition and extending their operational lifespan.

It has been five years since the government of Uganda stopped purchasing new vehicles, except those meant for revenue mobilization, for any government ministry, department, agency, and local governments.

This ban was implemented in the financial year 2019/20 and remains in effect.

The decision, according to the Ministry of Finance, aims to reduce excessive government expenditure.

However, it has significantly affected service delivery at the district level, leaving a large number of officers with no means of transport to carry out their activities and inspect government projects.

Ayesigwa also recommended close monitoring and tightening of terms of use for government vehicles to minimize misuse by responsible officers and mishandling by drivers.

"Periodic audits and inspections of these cars to hold users accountable are necessary.This will help minimize misuse of these vehicles," he added.

Previously, government was spending up to Shs100 billion annually on new cars, depleting the nation's resources and reducing the availability of resources for essential services.

Each day, the government operates a fleet of hundreds of vehicles that incur expenses for taxpayers, including fuel, maintenance, and general wear and tear.

Despite this, the Minister of Local Government, Raphael Magyezi, insists that local governments require Shs35.2 billion to procure new vehicles for officials.

He suggests allocating these funds from the three percent supplementary threshold that can be spent by the government without prior approval from Parliament.

The vehicles required are typically departmental or personal vehicles.

The minister emphasised the need to allocate at least Shs200 million per district to procure these vehicles while presenting to the Committee on Local Government and Public Service.

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