The Parliamentary Committee on Physical Infrastructure, chaired by Mbarara City South Member of Parliament Hon Mwine Mpaka, has held a high-stakes inquiry featuring key transport sector stakeholders.
The meeting brought together officials from the Uganda Manufacturers Association (UMA), Boda Boda Unions, vehicle dealers, and foreign service providers managing the new Intelligent Transport Monitoring System (ITMS).
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At the heart of the session, the performance and economic impact of Joint Stock Company Global Security (JSCGS), the Russian firm awarded the exclusive concession to issue digital number plates in Uganda.
A central point of contention raised during the hearings was the financial drain on the Ugandan economy, with an estimated 1,500 number plates required daily across motorcycles and motor vehicles, priced at over Ugx 714,000 each for new acquisitions, make collections from motorists exceed Ugx 1 billion.
Transport sector representatives questioned whether the project adds value or extracts wealth from the local economy and noted that a significant portion of this revenue flows out of the country through foreign service contracts rather than circulating within Uganda’s financial system.
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Representatives from Boda Boda Unions and the Associated Motor Dealers highlighted mounting operational bottlenecks and importers reported paying billions of Shillings in upfront fees for digital plates, only to face months-long delivery delays.
Motorcycle importers cited instances where thousands of units remained idle for over three months while waiting for plates.
Business operators noted that paying high upfront costs without timely delivery creates cash flow strain, forces reliance on high-interest loans, and severely impacts small transport operators dependent on daily revenues.
Uganda Manufacturers Association (UMA) officials expressed concern over the decision to bypass local production capacity in favor of a single foreign contractor and argued that local manufacturers possess the capacity to produce standard plate blanks and components domestically.
They claimed that excluding domestic firms not only reduces local employment opportunities but also contributes directly to the supply chain bottlenecks currently slowing down vehicle registrations across the country.
Hon Mwine Mpaka questioned the rationale behind transitioning from a functional local supply model to a single, foreign-managed monopoly and the MPs likened the operational delays and reliance on advance payments from new applicants to run ongoing operations as unsustainable, warning that it hurts economic productivity.
