Uganda Boosts Regional Trade with Multibillion Railway Deal
By The Public Lens
Uganda’s government has sealed a historic deal with Turkish construction giant Yapi Merkezi to build a 272-kilometer section of railway.
This strategic partnership aims to propel regional trade and economic growth.
The initial segment of the 1,700km electric rail line will stretch from Kampala to Malaba, Uganda’s border with Kenya.
Construction, slated to begin in November, is expected to take 48 months to complete.
The project’s total cost is approximately 2.7 billion euros, or Shs10.8 trillion.
Uganda’s Standard Gauge Railway project coordinator, Perez Wamburu, confirmed the agreement.
The railway will connect landlocked Uganda to Kenya’s rail network and the Indian Ocean seaport of Mombasa.
Uganda’s Works Permanent Secretary, Bageya Waiswa, emphasized the project’s benefits, including increased trade and reduced transport costs.
Uganda will finance the project using its own funds and credit from export credit organizations.
A 2015 agreement with China Harbour and Engineering Company Ltd (CHEC) was terminated due to unsuccessful funding negotiations.
Yapi Merkezi, with expertise in similar projects in Tanzania, was chosen as the new partner.
The Standard Gauge Railway initiative, launched in 2013, unites Uganda, Kenya, Tanzania, South Sudan and Rwanda.
The goal: seamless connectivity and boosted regional trade among 300 million people.
Kenya and Tanzania have made significant progress on their respective railway lines.
Uganda’s project marks a major milestone in the region’s economic integration.
