“A 40-foot container costs USD 3,500 to transport from Mombasa to Kampala by road, compared to only USD 1,500 by rail. When the Standard Gauge Railway is complete, it will take just one day for transport. That is why we are investing in the SGR—to reduce the costs of doing business in our economy and attract more businesses.” H.E. Yoweri Kaguta Museveni
H.E. Yoweri Kaguta Museveni recently laid the foundation stone for the construction of Uganda’s first historical Standard Gauge Railway line, which will have the capacity to transport over 1,000 metric tonnes of cargo. This project is expected to create over 600,000 job opportunities, including 30,000 direct jobs.
Beyond immediate employment, the SGR presents opportunities for long-term skills development. Ugandan workers will gain expertise in modern transport technologies, railway management, and logistics, enhancing the country’s human capital.
Over time, this will produce a more skilled workforce that can contribute to the growth of various sectors of the economy, thereby reinforcing Uganda’s competitive position in regional and global markets. Poor infrastructure generally hinders trade volumes.
The construction of the SGR aims to boost regional trade by enabling Uganda to trade directly with the rest of Africa. Current disconnections in Africa’s infrastructure have made us reliant on foreign markets. Improved SGR connectivity will benefit key sectors, such as coffee and dairy.
Additionally, the SGR will strengthen cooperation between Uganda and its neighbouring countries in infrastructure development and trade facilitation. This collaborative approach can promote peace, stability, and shared growth within the region.
By aligning with the East African Community (EAC) objectives of regional integration and economic cooperation, Uganda can leverage the SGR to enhance its role as a transport and logistics hub in East Africa.
This project is estimated to be completed in four years. Once operational, the SGR will enable trains to travel at speeds of over 100 km/h for cargo and 120 km/h for passengers, significantly lowering transportation costs, which is good news for traders.
This modern infrastructure is expected to revolutionise the transport sector and facilitate cargo movement across the region, marking a significant milestone in Uganda’s economic development.
The construction includes a 232 km mainline and a 40 km stretch of the SGR from Malaba to Kampala, with plans to extend it to South Sudan, the DRC, Rwanda, and Burundi. With the SGR, Uganda will develop modern rail stations, improve connectivity between cities and towns, and introduce more sustainable and efficient means of transport.
These advancements are likely to drive urbanisation and create new economic zones along the railway line, boosting local economies and national development. Uganda, with its rich natural resources, national parks, and cultural heritage, has significant potential to attract tourists.
Improved rail transport will make it easier for tourists to explore Uganda’s diverse attractions, from the renowned mountain gorillas in Bwindi to the savannas of Queen Elizabeth National Park. As tourism grows, it will contribute significantly to Uganda’s GDP and provide a sustainable source of foreign exchange. The newly launched Standard Gauge Railway has the potential to greatly enhance Uganda’s economic prospects.
By facilitating trade, improving regional integration, creating jobs, and boosting infrastructure, the railway system is set to become a catalyst for sustained economic growth.
By unlocking access to regional and international markets, supporting infrastructure development, and fostering greater cooperation within the East African Community, the SGR can transform Uganda’s economy into a regional powerhouse through strategic investment and careful management.
