Uganda Commits $3 Billion to New Railway System for Enhanced Transport Efficiency

Transport plays a crucial role in global economies, yet in many parts of Africa, particularly Sub-Saharan Africa, it comes at a significant cost. The region relies primarily on road transportation, but as populations increase, vehicle ownership remains out of reach for many.

In Uganda, transportation is largely driven by the private sector, making it costly for the public. Uganda’s transport infrastructure faces numerous challenges, especially in and around Kampala, where congestion is rampant, and many roads are either unpaved or filled with potholes.

Humphrey Mwijukye, a logistician with UniFreight Group, works weekly to keep international shipping schedules on track. He oversees trucks running between Kampala and Kenya’s coastal port of Mombasa, the company’s busiest route. However, this route is plagued by issues such as traffic congestion and bottlenecks, particularly at the single Malaba border post.

“We’re constantly challenged by traffic and delays at border points like Malaba, which disrupt our delivery schedules,” Mwijukye explains. “These delays impact our clients and add unexpected costs to our operations due to supply chain interruptions beyond our control.”

To address some of these challenges, the Ugandan government has signed an agreement with the Turkish construction firm Yapı Merkezi to build a 272-kilometer section of the Uganda Standard Gauge Railway (SGR) between Malaba and Kampala. The €2.7 billion deal marks a significant investment in Uganda’s transport infrastructure, aiming to ease the movement of goods and passengers by establishing a faster, more reliable rail connection.

General Katumba Wamala, Uganda’s Minister of Works and Transport, emphasized the railway’s importance, stating, “The Standard Gauge Railway will be the backbone of our surface transport, meeting the growing demand for cargo and passenger transport across the country and region.”

As a landlocked country, Uganda relies on the port of Mombasa, approximately 1,500 kilometers away, for much of its trade. This new railway project, which is part of a broader 1,724-kilometer SGR network connecting Uganda with neighboring countries, is expected to foster an export-driven economy in Uganda.

However, the ambitious project faces financial challenges, with Uganda struggling to secure nearly $3 billion for construction amid rising public debt. Despite these hurdles, the SGR has the potential to transform Uganda’s economy by streamlining transport and boosting trade throughout the region.

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