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Home Featured

Manufacturers blame monopoly for digital number plate delays, business losses

by Musa Mbogo
in Featured, General, National, News
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The Uganda Manufacturers Association (UMA) has asked Parliament to open up the digital number plate system to more local manufacturers, arguing that the current arrangement has created delays that are affecting businesses, motorists and government revenue.

UMA says allowing additional Ugandan companies to manufacture the physical number plates would help clear the growing backlog, protect local jobs and prevent business assets from being immobilised, while the digital security components can be integrated as they become available.

The proposal was presented on Monday, September 28, 2026, when UMA officials and representatives of Russia-based Joint Stock Company Global Security appeared before Parliament’s Committee on Physical Infrastructure, chaired by Mwine Mpaka, to give their views on the implementation of the digital number plate system.

UMA Board Chairperson Richard Mubiru, Executive Director Ezra Muhumuza and Director of Policy and Research Allan Ssenyondwa also called for clear timelines for issuing number plates, a unified accountability mechanism for delays and greater consultation with stakeholders.

“Let these other companies which were producing number plates be allowed to produce. The digital parts can come in as and when needed,” Ssenyondwa told the committee.

Government introduced the digital number plate system as part of efforts to strengthen vehicle identification and address security challenges associated with forged and duplicated number plates.

In 2021, the government signed a 10-year agreement with Russia-based Joint Stock Company Global Security as the sole manufacturer of digital number plates in Uganda.

However, UMA says the expected improvements have not yet been realised.

“From where we sit at UMA, we have not seen a breakthrough in that regard,” Mubiru told the committee.

The concerns were echoed by motorists and transport sector representatives who appeared before the MPs, with some reporting long waits after paying for the new plates.

Hassan Ssentongo, a boda boda rider, told the committee that he paid for his digital number plate more than a year ago but was yet to receive it.

“I paid for a number plate when I was changing from UBD696N to digital, but I paid on 28 July 2025, on order number S43461, and when I complained, they gave me another assessment that I should pay again,” Ssentongo said.

Frank Mawejje, chairperson of the National Boda Boda Union, said riders had been given various explanations for the delays.

“When you complain to these people, they tell you that there is a war between Israel and Iran and the consignments have delayed on the way,” Mawejje said.

Mawejje also questioned whether the digital plates were delivering the promised security benefits, particularly in the recovery of stolen motorcycles.

“We have never recovered any motorcycle using a digital number plate. Motorcycles are being recovered using cameras,” he said.

He further challenged the increase in the cost of number plates, saying the charges had risen from Shs125,000 to more than Shs700,000 and should take into account the different circumstances of boda boda riders and other motorists.

The clearing and forwarding sector also raised concerns about the system’s ability to track vehicles.

Kezekia Bwire, Vice Chairperson of the Uganda Clearing Industry and Forwarding Association, told MPs that some clients had experienced difficulties obtaining assistance and that several vehicles and motorcycles had gone untraced.

“Hon. Waluswaka has a digital number plate. Can you, as Joint Stock, use your liaison person at police to track the vehicle and tell us where it is?” Bwire asked.

The committee was also told of a case in which a vehicle was deliberately kept in a garage and a request was made for the digital system to locate it, but the vehicle could not be traced.

For UMA, the problems point to the need to reconsider the structure of the system rather than relying on a single manufacturer.

The association says allowing other local companies to produce the physical plates would increase production capacity and reduce waiting times, while retaining the digital components necessary for security and tracking.

UMA further wants the government to establish a clear turnaround time for applications and identify the institutions or companies responsible whenever the agreed timelines are not met.

The parliamentary committee also grilled the company over estimated revenue losses of about Shs4 billion per week, as well as implementation challenges under the Intelligent Transport Monitoring System (ITMS). MPs also demanded answers over the reported decline in the rate of digital number plate installations.

“As of 1 June 2026, the daily output of number plates has dropped from 350 to under 100 sets on average,” Mwine Mpaka said, adding that some upcountry centres had suspended plate issuance due to a lack of installation kits.

Responding to the concerns, Damir Makhmutov, Project Manager for the Intelligent Transport Monitoring System (ITMS) at Joint Stock Company Global Security, acknowledged that the government had raised concerns over scarcity and delays and called for faster action.

Makhmutov attributed some of the delays to disruptions to international consignments caused by conflicts abroad.

He, however, said the company had sufficient technical capacity and manpower to increase installations.

“We have the technical capability. We have enough staff to perform 1,500 installations per day. But, for example, as of the 23 of September, we have done 1,307 installations,” Makhmutov said.

UMA maintains that expanding participation in the manufacture of the plates would not necessarily undermine the security objectives of the digital system, but could instead help Uganda address production bottlenecks, protect local manufacturing jobs and ensure the government continues to collect revenue from a functioning system.

Tags: BODA BODAdigital number plate systemdigital number platesgovernment revenueIntelligent Transport Monitoring SystemITMSJoint Stock Company Global Securitylocal manufacturerslocal manufacturingMwine Mpakanumber plate backlognumber plate delaysParliament UgandaUganda digital number platesUganda Manufacturers AssociationUganda ParliamentUganda transport sectorUMAvehicle identificationvehicle tracking
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Musa Mbogo

Musa Mbogo

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