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Uganda has launched a $3 billion investment in a new railway system to improve its transport infrastructure and boost economic growth. Partnering with Turkish construction firm Yapı Merkezi, Uganda signed a €2.7 billion agreement to build a 272-kilometer section of the Uganda Standard Gauge Railway (SGR) between Malaba and Kampala. The project, set to be completed over the next four years, will enhance connections between Uganda’s capital and Kenya’s coastal port of Mombasa, a vital trade route for the landlocked country.
Uganda’s Minister of Works and Transport, Gen. Katumba Wamala, highlighted the railway’s importance, describing it as the “backbone” of the country’s transport network, designed to meet increasing demands for cargo and passenger transport across the region. The SGR project is part of a broader 1,724-kilometer plan to link Uganda with neighboring countries, strengthening regional trade and reducing the pressure on road transport.
This infrastructure upgrade marks a significant step toward supporting Uganda’s shift to an export-driven economy. However, financing remains a challenge as Uganda manages rising public debt. Despite these hurdles, the government remains committed to enhancing its transport capabilities, aiming to create a more efficient, reliable logistics network to drive economic progress.
