Uganda’s government has partnered with Turkish construction firm Yapi Merkezi to build a 272-kilometer section of railway, aiming to enhance regional trade, a Ugandan official announced on Monday.
Perez Wamburu, coordinator of Uganda’s Standard Gauge Railway (SGR) project, explained that this contract marks the first phase of a larger 1,700-kilometer electric rail line.
The cost of this segment is estimated at €2.7 billion (around UGX 10.8 trillion). Construction is set to begin in November.
According to Uganda’s Works Permanent Secretary, Bageya Waiswa, the railway will help boost trade and reduce transportation costs.
Uganda will finance the project through its own funds and loans from export credit organizations, with an expected completion time of 48 months.
This initial rail section will connect the capital city, Kampala, to Malaba, located on the border with Kenya, effectively linking Uganda to Kenya’s rail network and the Indian Ocean port of Mombasa.
Previously, Uganda had signed an agreement in 2015 with China Harbour and Engineering Company Ltd (CHEC) to implement the project.
However, after years of unsuccessful attempts to secure funding from the Chinese government, Uganda terminated the deal and entered discussions with Yapi Merkezi, which is involved in a similar railway project in Tanzania.
The SGR initiative, launched in 2013 by leaders from Uganda, Kenya, Tanzania, South Sudan, and Rwanda, aims to connect these nations and strengthen trade across the region, home to over 300 million people.
While Kenya and Tanzania have made significant progress, Uganda is now catching up with this latest development.
Uganda Shifts from China to Turkey for Railway Development
Uganda has decided to cut ties with its Chinese partners and has now turned to Turkey to construct a new railway line that will connect Kampala to neighboring Kenya.
This railway is part of a broader East African initiative to improve its infrastructure in alignment with pan-African goals.
The long-delayed project will extend from Uganda’s capital, Kampala, to Malaba on the Kenyan border, eventually linking up with the Indian Ocean port of Mombasa.
Terminating the Chinese Contract
For years, China had been the go-to partner for Uganda’s large-scale infrastructure projects.
However, Uganda recently canceled a $2.2 billion contract with China Harbour Engineering Company (CHEC) after China Exim Bank refused to fund the project.
Journalist John Kibego noted that while China has completed several projects in Uganda, including roads and hydroelectric plants, the government felt it was time for a change.
“If China’s terms or timing aren’t suitable, the government has a duty to act in the best interest of its citizens,” Kibego said.
Enter Turkey
Turkey has become an emerging player in Africa, both economically and diplomatically.
Turkish companies have already invested over $70 billion in Africa, according to Yunus Turhan, a Turkish-African relations expert.
The Turkish government has also strengthened its presence on the continent, opening embassies in more than 40 countries and expanding Turkish Airlines routes to 60 African destinations.
A leading Turkish company, Yapi Merkezi, has taken over the first phase of Uganda’s SGR project.
This company is renowned for its quality work in East Africa, particularly in Tanzania, where it built a highly praised section of the SGR.
China’s Role in East African Infrastructure
While Uganda is moving away from Chinese contractors, China remains a major player in East African infrastructure.
In Tanzania, for example, the SGR project is progressing steadily, with some sections set to open soon. However, Chinese involvement in Kenya has faced more challenges.
The Mombasa-Nairobi SGR line, constructed and operated by Chinese firms, has been plagued by financial difficulties and political interference.
Kenyan President William Ruto recently annulled a deal requiring goods transported through Mombasa port to use the SGR, a decision that has strained relations with China.
A Temporary Solution: Restoring Colonial-Era Railways
In the short term, Uganda and Kenya have opted to revive their colonial-era meter-gauge railway (MGR) lines.
This is a more affordable option compared to building new SGR lines. The MGR line from Kampala to Malaba is expected to open soon, with Kenya’s section already operational.
While these older lines can’t handle the heavy loads the SGR is designed for, they offer a quicker way to improve connectivity in the region.
Looking ahead, experts believe that the SGR will be critical for the region’s long-term economic growth.
Despite rising debt along the Kenya-Uganda route, economist James Shikwati argues that borrowing can be beneficial if used to boost development.
