We’ve covered plenty of tax incentives and rebates to make electric motorcycles and other EVs more affordable, but this is the first time we’ve seen a country give away free EVs to replace internal combustion engines (ICEs).
As the first country to make such a bold move, Uganda’s Yoweri Kaguta Museveni announced it during his year-end address.
Ugandans who currently drive ICE-powered motorcycles will be offered electric motorcycles as trade-ins by Museveni.
According to news reports, Uganda’s president said the capital would come from “investors,” not the government:
As part of an agreement with some investors, we will take away the petrol ones and give the owners the electric ones. This swap will save motorcycle operators 50% on their costs
Those investors will reportedly be granted licenses to operate charging and battery swap stations, which will allow them to recoup their investment. Ugandan electric motorcycles usually sell for around 5 million Ugandan Shillings (approximately US $1,350).
Boda bodas are a popular form of transportation in many parts of Africa, used as an alternative to the likes of Uber and Lyft. Recently, in Uganda, plans have been made to switch their entire motorcycle fleet to electricity which is the largest project so far. Unsurprisingly, Uber has its own version of boda bodas in this region – really putting emphasis on the convenience they bring
- Additionally, electric motorcycles are likely to lower operating costs for independent motorcycle taxi operators, in addition to their obvious environmental benefits. Despite the President’s figures, Uganda’s Science and Technology Minister, Dr. Monica Musenero, says the motorcycles were specifically designed for urban use and do not have long ranges. Approximately 70 km (43 miles) of range can be achieved from a single charge.t is for this reason that motorcycles are charged and battery swapped. In Kampala, many companies, like Zembo, already operate charging and swapping stations. The model sounds similar to Gogoro’s battery swapping electric scooters. Instead of owning the battery, riders subscribe to Gogoro’s battery swapping plan, which lets them swap at local battery stations.Thousands of battery swap stations exist in Taiwan, and Gogoro is expanding internationally rapidly.
his is an interesting way to create an incentive to replace polluting vehicles with efficient EVs. Instead of incentivizing the end customers with discounts, as we usually see in the West, Uganda is somehow incentivizing the companies that manufacture the motorcycles and operate the battery swap stations.
Like the old razor and cartridge model, you get the handle for free and then you’re a lifelong razor cartridge customer. But it’s sort of a win-win-win in this case, in that Uganda reduces pollution, motorcycle owners reduce their costs, and motorcycle/battery companies get a huge influx of customers to use their battery swapping stations.