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    Standard Gauge Railway to Boost Regional Trade and Employment

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    Standard Gauge Railway to Boost Regional Trade and Employment
    • November 22, 2024 • 9 days ago
    in summary
    President Museveni has launched Ugandas first Standard Gauge Railway (SGR) project, aimed at boosting regional trade, creating jobs, and reducing transport costs.

    President Yoweri Kaguta Museveni has inaugurated the construction of Uganda’s first Standard Gauge Railway (SGR) line, which aims to enhance trade within East Africa and beyond. The railway, designed to carry up to 1,000 tonnes of cargo, is set to create significant economic opportunities, including over 600,000 jobs upon completion.

    The initial phase of the project, covering the eastern route from Malaba to Kampala, will cost €2.7 billion (approximately Shs10.8 trillion). It is being developed by Turkish construction firm Yapi Merkezi, with direct employment for 700 workers and additional indirect opportunities. This phase is scheduled to take four years to complete and is co-funded by the Ugandan government and the African Development Bank.

    The SGR will feature trains capable of speeds of 100km/h for cargo and 120km/h for passengers, improving both transportation efficiency and accessibility. According to President Museveni, the railway will cut travel time between Mombasa and Kampala from 14 days to less than 24 hours, transforming the logistics landscape.

    Speaking at the launch at Tororo main station, President Museveni highlighted the railway’s potential to promote tourism, strengthen trade ties, and spur economic growth. “This project will stimulate trade within the region, especially in sectors like coffee and tobacco, enabling Uganda to bypass international price pressures and connect directly with African markets,” he noted.

    The President emphasized the importance of improved infrastructure in boosting intra-African trade, which currently lags at under 15% compared to other regions where it ranges between 40-60%. He also reaffirmed Uganda's commitment to the 2014 regional SGR protocol signed with Kenya, Rwanda, and South Sudan, with the Democratic Republic of Congo expressing interest in joining.

    Gen Edward Katumba Wamala, the Minister of Works and Transport, explained that the SGR will significantly reduce transport costs. Moving cargo from Mombasa to Kampala will drop from $3,200 (Shs11.7 million) to $1,600 (Shs5.8 million). The minister added that 95% of the affected individuals along the route have been compensated, paving the way for smooth implementation.

    Local leaders, including Tororo North County MP Geoffrey Ekanya, urged the government to prioritize hiring local workers and sourcing construction materials locally, citing the availability of cement and murram in the area. Turkish Ambassador Fatih Ak praised the initiative, stating it would make Ugandan products more competitive globally.

    This modern railway system is part of Uganda's broader strategy to protect its road infrastructure and develop a seamless regional transport network, benefiting trade and tourism.

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