Uganda SGR construction takes off with USD 75m funding release

August 28, 2025 in Business, Companies, Infrastructure, Transport by Editor

Construction of Uganda’s long-awaited Standard Gauge Railway (SGR), is gathering pace following the government’s release of USD 75 million to the contractor, Turkish firm Yapı Merkezi.

The 272-kilometre Malaba–Kampala line, part of the East African Community Railway Master Plan and the Northern Corridor Integration Projects, is budgeted at €2.7 billion (UGX 10.8 trillion). Once complete, it will link Uganda’s capital to the Kenyan border, traversing Tororo, Butaleja, Namutumba, Iganga, Luuka, Mayuge, Jinja, Buikwe, Mukono, and Wakiso.

The initial tranche of funds is being used by the contractor to conduct preliminary work such as surveys along the alignment of the project.

At a briefing on Tuesday, Perez Wamburu, SGR Project Coordinator, said the government is prioritising local content, with at least 40pc of project value expected to go to Ugandan suppliers. Areas of participation include cement and steel supply, logistics, equipment leasing, labour, security services, hospitality, and health.

Progress on land acquisition has also gathered pace. Wamburu reported that 150 kilometres (55pc of the corridor) had been secured, mainly up to Buikwe district. Compensation for Project Affected Persons has so far reached UGX 300 billion, out of a total UGX 610 billion valuation.

Officials describe the SGR as a transformational infrastructure project that will cut transport costs, accelerate regional trade, and position Uganda as a logistics hub. It is also expected to reduce pressure on the ageing meter-gauge railway and congested highways linking Mombasa port to Kampala.

The project has been in gestation for nearly a decade, slowed by financing hurdles and land compensation disputes. The latest government funding marks the clearest signal yet that construction is finally underway in earnest.