Manufacturers decry digital number plate monopoly, cite inefficiencies

The Uganda Manufacturers Association (UMA) has voiced strong opposition to the exclusive contract awarded to Joint Stock Company Global Security, a Russian firm, for the production of digital number plates. UMA argues that this monopoly, established in 2021 for a ten-year term, has not only failed to enhance security as intended but has also created substantial hurdles for local businesses.

During a parliamentary committee meeting, UMA Board Chairperson Richard Mubiru stated that the promised security improvements related to falsified number plates have not materialized. He also pointed out that the current arrangement has sidelined two previously established local companies involved in number plate manufacturing, raising questions about fair competition.

Concerns extend beyond the manufacturing sector, with numerous complaints about prolonged delays in the issuance and installation of the digital plates. Boda boda riders and other vehicle owners have reported waiting for months after making payments, encountering further complications when seeking resolution. Some users have been asked to pay again after initial payments, and excuses for delays often cite international conflicts impacting deliveries.

Furthermore, questions have been raised about the efficacy of the digital plates in tasks like recovering stolen motorcycles. Representatives from the National Boda Boda Union and the Uganda Clearing Industry and Forwarding Association noted that stolen vehicles are still being tracked through conventional camera systems, not the digital plates. The significant increase in plate fees, from Shs125,000 to over Shs700,000, has also been a major point of contention, particularly for motorcycle operators.

In response to these criticisms, Damir Makhmutov, Project Manager for Joint Stock Company Global Security, acknowledged receipt of government correspondence regarding scarcity and delays. He attributed some of the challenges to disrupted supply chains due to global conflicts but assured the committee of the company’s technical capacity to handle a higher volume of installations.

The Parliamentary Committee on Physical Infrastructure is continuing its inquiry into the matter, with a report expected to be presented to Parliament. https://www.parliament.go.ug/news/4635/manufacturers-cry-foul-over-digital-number-plate-monopoly