The government has unveiled a series of tax incentives aimed at promoting the local assembly of electric and hybrid motorcycles, as part of efforts to boost green manufacturing and streamline Uganda's boda boda industry.
State Minister for Trade, Industry and Cooperatives, David Bahati, made the announcement during a consumer awareness campaign organised by Honda by Markh Automobile Uganda.
He revealed that qualified investors setting up e-bike assembly plants in Uganda will benefit from tax holidays and other government support.
"We are supporting people like Maria, who are establishing assembly plants here in Uganda, by giving them tax holidays and other incentives. Those dealing in electric bike assembly will benefit from these incentives, especially if they meet the required environmental and manufacturing standards,' Bahati said.
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Bahati also noted that the government has introduced environmental taxes on older, more polluting motorcycles to encourage the transition to cleaner alternatives.
In addition to promoting eco-friendly transport, Bahati said the Ministries of Works and Transport and Kampala Capital City Authority (KCCA) are collaborating to regulate and streamline the boda boda sector, starting with operations in Kampala before expanding nationwide.
He added that the responsible ministries will soon issue further guidelines on implementation.
The minister also emphasised ongoing government efforts to combat counterfeit products and welcomed the adoption of hybrid motorcycles those that run on both electricity and petrol as a positive step toward reducing carbon emissions.
Speaking during a stakeholders' engagement on industrial development, Markh Automobile Managing Director Maria Namusoke Kamoga raised concern over the influx of counterfeit products, warning that the trend is stifling economic growth and trapping communities in poverty.
"We are being flooded by counterfeit goods. It's costing us significantly, and it's costing the community even more. Counterfeit products keep people in poverty you end up buying the same item repeatedly without progress," Kamoga said.
She criticised traders who prioritise quick turnover over quality, saying this mindset fuels the proliferation of substandard goods, damages the economy, and hampers the development of sustainable local industries.
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"This is the kind of trade dominating Uganda people focus on turnover instead of long-term value," she noted. "Counterfeit is dangerous to the economy. It weakens our progress and undermines genuine businesses."
Kamoga urged the government to urgently review and strengthen trade policies to tackle the crisis, warning that failure to act would prolong economic challenges.
"To improve the lives of our communities, the government must revise and enforce better trade policies," she said. "Those of us in business must also work hand in hand with government to combat counterfeit goods."
