Why digital number plates project has hit a snag

The rollout of digital number plates in Uganda has faced significant delays, frustrating motor vehicle dealers and raising concerns about the capacity of contractors to implement the project.

The rollout of digital number plates has hit a snag, triggering frustration among motor vehicle dealers and raising concerns over the capacity of contractors to implement the project.

Since its full implementation on January 6, this year, the initiative has faced challenges including logistical setbacks amid a public outcry over the slow pace of implementation.

Motor vehicle dealers have voiced strong dissatisfaction with the sluggish progress of processing digital number plates, which are cleared by the Ministry of Works and Transport and the Uganda Revenue Authority (URA).

The dealers argue that supply and processing delays are creating a backlog, adversely affecting their business operations and customer satisfaction.

Charles Kamunvi, the chairperson of the Associated Motor Dealers, said: “The plates do not come on time; it takes about two weeks for URA to clear you. There are very many cars, but the number plates are few.”

Francis Kanakulya, another member of Associated Motor Dealers, questioned the Government’s preparedness for the project.

“There is no capacity to handle this project efficiently because it was not well planned in the initial stages. Uganda registers a minimum of 50,000 vehicles annually, translating to over 200 vehicles per day.

Yet, the entity managing the process can only handle about 25 vehicles per day, leading to a crisis,” Kanakulya said.

The digital number plate project is part of the Intelligent Transport Monitoring System (ITMS), aimed at enhancing vehicle identification, curbing traffic-related crimes and improving administrative efficiency.

The ITMS is expected to integrate with the country’s security systems to bolster law enforcement capabilities.

However, a source revealed that the digital number plates being issued have not yet been integrated with the closed-circuit television (CCTV) camera system managed by the Police as was expected.

“They are supposed to be connected to the CCTV system, but there are still challenges. As we speak, they are not connected to the system,” the source said, adding that this means cars with digital number plates cannot be tracked electronically using a digital chip.

The source also revealed that the ITMS implementation does not need a new number plate, as it is only a chip required to carry out the monitoring role.

“In other countries where it has worked, the number plates are maintained but the governments put a chip on them for monitoring purposes. Why would someone then require motorists to pay for new number plates when it is only a chip that does the monitoring?” the source asked.

In 2019, the Government of Uganda signed a 10-year contract with Joint Stock Global Security (JSGS), a Russian company, to manufacture and install digital number plates.

The Government hopes to rake in sh21.4b monthly in vehicle and motorcycle registration.

The cost of obtaining a digital number plate for first-time registration was set at sh714,000; while those seeking replacements for old plates will pay sh150,000. For motorcycles, the fee stands at sh50,000. The Government hoped to phase out all old non-digital plates within two years, but this is unlikely to be met due to the delays the project has faced.

URA denies delay claims

A source at URA acknowledged the challenges faced by car dealers, but declined to divulge more details and instead referred New Vision to the transport ministry, which is in charge of the project.

When contacted, Robert Kalumba, the URA public and corporate affairs manager, denied that the authority is causing any delays in the implementation of the digital number plate project.

“We are not the ones causing the delay. From our side, we are doing our bit to ensure that everything runs smoothly in the implementation of this project,” Kalumba said.

Transport ministry responds

Suzan Kataike, the transport ministry spokesperson, acknowledged the concerns raised by car dealers. However, she said that the project team confirmed the availability of enough digital number plates.

“We have sufficient digital number plates. A team was sent to the facility to verify and the report will be ready today [February 19] to clarify the number of digital plates available for various categories,” Kataike said.

She said: “We operate a system involving URA, Uganda National Bureau of Standards, and the Ministry of Works and Transport. We are at the tail end of the process, and until the other two entities have untagged the client, we cannot clear them.”

She clarified that the current system requires a verification account, which mandates that clients provide all the necessary information for clearance.

However, Kataike said: “Some players assumed they could bypass this process, which is contributing to the delays. Additionally, another cause of delay is that people make payments without providing the necessary backing information. The service provider has reported receiving a lot of people’s money but is unable to move forward without identifying the owners.”

Security, administrative challenges

During the project launch in November 2023, security minister Maj. Gen. (rtd) Jim Muhwezi assured the public of the Government’s commitment to meeting the domestic demand for over 2.2 million vehicles.

“A production line for digital plates has been established in Kampala and the old number plates will be phased out within two years,” Muhwezi said.

He emphasised that the ITMS would enhance national security by improving vehicle traceability.

“The system will provide real-time tracking of vehicles involved in criminal activities and ensure swift responses from security agencies,” Muhwezi said.

Local production facility

The Government has partnered with JSGS to implement the ITMS. To support local production, a facility was set up in Kawempe, Kampala equipped with hot stamping and embossment machines.

In October last year, JSGS was allocated five acres of land in Bugolobi, Kampala, to construct a factory.

Despite these efforts, the project is struggling to keep up with demand as some government vehicles still lack the new plates. As of January 6, this year, the ITMS project had registered about 11,143 motorcycles and 2,721 vehicles with digital number plates.

How other countries do it

Security and transport experts questioned why the Government chose a different approach from that of other countries.

“Other governments, such as those in the US, Russia, China, United Arab Emirates and various European countries, did not need to purchase new number plates. Instead, they installed the security features on the existing plates,” an expert, who preferred anonymity, said.

On why new number plates were introduced, Kataike explained: “The Government needed to clean its database because there was not sufficient data on both motorcycles and vehicles. Additionally, we had to introduce a new system as the old alphabetical system was exhausted. The change was not solely driven by the introduction of the new number plates.”

Project delays

Initially scheduled for rollout on March 1, last year, the project has faced multiple postponements, first to July last year, then to November last year, due to logistical challenges. The full rollout was later postponed to January this year.

Muhwezi cited disruptions caused by the Russia-Ukraine conflict as one of the factors affecting procurement and delivery timelines.

In addition, the Kampala City Traders Association petitioned Parliament to delay the project, arguing that there was inadequate public awareness.

The association suggested that the Government should first implement the system on government vehicles only before enforcing it on private vehicle owners. Uganda had approximately 2.15 million registered motor vehicles as of July 3, last year.

This rapid increase in vehicle numbers has brought about challenges such as vehicle-related crimes, traffic accidents, number plate forgery and administrative inefficiencies.

Muhwezi said inadequate vehicle tracking systems have impeded efforts to combat crime effectively.

“Insufficient evidence to track vehicles used in criminal activities has been a significant challenge. The lack of a reliable vehicle management database further complicates law enforcement efforts,” Muhwezi said.

Winstone Katushabe, the commissioner for transport regulation and safety at the transport ministry, reiterated that privacy concerns had been addressed.

“A joint feasibility study confirmed that Uganda’s infrastructure can support the ITMS. The system complies with national laws on data protection,” Katushabe said.