BITING HARD: Car Dealers Protest Number Plate Delay As Digital System Backlog Bites

 

By PATRICK JARAMOGI

KAMPALA, UGANDA March 27 [SHIFT MEDIA] Car dealers and importers across Uganda have escalated pressure on government over persistent delays in the release of digital number plates, warning that the inefficiencies are crippling operations and eroding confidence in the sector.

At the center of the dispute is the government-managed digital number plate system introduced by the Ministry of Works and Transport, with each plate costing about UGX 714,000–720,000. While the system was designed to enhance vehicle security and modernize registration, dealers say its implementation has instead created a costly and frustrating bottleneck.

Mr. Al Malik, a leading importer, Chairperson of Car Importers in Uganda, and proprietor of Al Malik Group of Companies, described the situation as unsustainable.

“This is no longer a small inconvenience—it is a systemic failure,” he said. “We have fulfilled all requirements, paid taxes, and cleared vehicles, but we cannot release them because number plates are not available.”

He further alleged that the process has been infiltrated by unofficial payments, effectively turning the issuance of number plates into a parallel commercial enterprise.

“It is a fact—the number plates have become a business. We are forced to pay between UGX 150,000 and 200,000 on top of the official fee just to get plates,” Al Malik revealed. “Without facilitation, you can wait for weeks.”

According to him, the cost of acquiring number plates has risen sharply compared to the previous system.

“We are now paying UGX 714,000, which is about UGX 550,000 more than what we used to pay before digital plates were introduced—almost five times more. Yet the service delivery is not even 10 percent of the value we are paying,” he said.

Al Malik added that even after completing documentation, dealers are forced to wait between seven and ten days under normal circumstances—delays he says are unacceptable in a fast-moving business environment.

“If you don’t pay the extra money, you are pushed to the back of the queue. Meanwhile, our clients are threatening legal action, involving police, and demanding their vehicles because they have already paid,” he said.

The growing frustration has now drawn in organized industry pressure. The Delight Car Dealers Association Uganda Limited has issued a strong warning, demanding an urgent meeting with President Yoweri Museveni if immediate action is not taken to resolve the crisis.

Association members argue that the situation has gone beyond administrative delay and now threatens the survival of legitimate businesses.

The Ministry of Works and Transport, under Edward Katumba Wamala, has previously acknowledged the delays, attributing them to high demand, system upgrades, and transitional challenges linked to the rollout of the digital number plate system.

Background reports from the Ministry indicate that the digital plates were introduced to strengthen national security, incorporating tracking features intended to support law enforcement and curb vehicle-related crime. The system is centrally managed to prevent fraud and ensure uniformity.

However, officials have admitted that the transition has faced logistical and technical challenges, resulting in a growing backlog.

“We recognize the concerns raised by stakeholders,” Gen. Katumba Wamala said in a recent statement. “Government is working to streamline processes, expand capacity, and ensure timely issuance of number plates.”

Despite these assurances, dealers say the response has been slow and insufficient.

Al Malik is now proposing a long-term solution—localizing production of digital number plates.

“As stakeholders, we are ready to partner with government to establish a production line for digital number plates here in Uganda,” he said. “This would reduce delays, create jobs, and eliminate unnecessary bottlenecks in the system.”

Industry analysts warn that if the delays persist, the ripple effects could extend beyond car dealerships to impact banks, insurance companies, and government tax revenues tied to vehicle imports.

“The automotive sector contributes significantly to the economy,” Al Malik emphasized. “If this issue is not urgently addressed, it will affect the entire value chain—including government collections.”

With pressure mounting from dealers, associations, and consumers alike, the spotlight is now firmly on the Ministry of Works and Transport to resolve the crisis before it escalates further.