SGR Construction Marks New Era for Uganda’s Economic Transformation, Says Minister
Groundbreaking of Malaba section signals renewed commitment to regional infrastructure development
The groundbreaking ceremony for the Malaba section of the Standard Gauge Railway (SGR) represents a historic milestone in Uganda’s development agenda and regional integration efforts, according to the Minister for the Presidency.
In a statement released following the ceremony, the Minister described the SGR as far more than a transport project, calling it “a strategic intervention designed to reshape the economic geography of our region.”
The 1,724km railway network, with a newly launched 369km section stretching from Naivasha to Malaba on the Ugandan border, is designed to transport up to 25 million tonnes of cargo annually. The Malaba link will eventually connect to Kampala, with prospects for extension to Rwanda and beyond.
Addressing Landlocked Challenges
For landlocked Uganda, the project addresses critical logistical hurdles. According to the Minister, Uganda received nearly 70% of its 7.37 million tonnes of cargo through Kenya’s Mombasa Port in the first half of 2025 alone. Currently, cargo takes up to 80 hours to reach the Ugandan border and more than 100 hours to arrive in Kampala, delays attributed to road transport challenges including traffic congestion and poor road conditions.
The SGR is expected to cut the cost of transporting a 20-foot container from Mombasa to Kampala by nearly half, from approximately $3,200 to $1,600, significantly reducing production costs and inflationary pressures.
Economic Impact and Employment
Beyond cost reduction, the Minister highlighted the project’s potential to catalyse industrialisation, support industrial parks, and attract foreign direct investment. The construction phase alone is expected to create approximately 150,000 jobs, building local capacity in engineering and infrastructure development.
The Minister pointed to Kenya’s SGR, launched in 2017, as evidence of the potential returns, noting that in 2025 alone, Kenya’s passenger revenue stood at $37.1 million, whilst cargo transport generated $128.7 million.
A Vision for Integrated Transport
President Museveni has emphasised the need to rationalise the national transport system, with plans to shift heavy cargo to rail, petroleum products to pipelines, while reserving roads for passengers and light cargo. The Minister described this approach as “pragmatic and forward-looking,” noting it will protect road infrastructure and enhance transport efficiency through multimodal integration.
The project aligns with Uganda’s Vision 2040 and the forthcoming National Development Plan IV, supporting the ten-fold growth strategy by lowering business costs, boosting productivity, and expanding economic opportunities.
“This project is not just about steel tracks and locomotives,” the Minister said. “It is also about unlocking Uganda’s future and connecting our people to opportunities, our businesses to markets and our country to the global economy.”
The Minister called for collective effort from government, the private sector, and citizens to support the strategic investment, describing it as “a clear pathway to our national prosperity.”
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