The World Bank has committed to supporting Uganda financially in the development of its Standard Gauge Railway (SGR), marking a significant boost for one of East Africa’s most ambitious infrastructure projects aimed at improving regional trade and transport efficiency.
The assurance was given by Fan Qimiao, the World Bank’s division director for Kenya, Rwanda, Somalia and Uganda, during a meeting with President Yoweri Museveni in Kampala. He indicated that the institution had already prepared documentation and was ready to provide financial support as part of its broader development partnership with Uganda.
The planned SGR project is designed to transform freight and passenger transport in the region by linking Uganda to Kenya’s railway network, which ultimately connects to the port of Mombasa. This would provide Uganda, a landlocked country, with faster and more cost effective access to international markets, significantly reducing dependence on road transport for heavy cargo.
President Museveni welcomed the World Bank’s commitment, stressing that the railway is a key component of Uganda’s long term infrastructure strategy. He outlined a transport model in which rail would handle heavy cargo, pipelines would be used for petroleum products, and roads would primarily serve passengers and light freight. This approach, he said, is intended to reduce congestion, lower logistics costs and improve overall efficiency in the economy.
The SGR project is also closely tied to broader regional integration efforts within the East African Community. In March 2026, Museveni and Kenyan President William Ruto jointly launched the extension of the railway toward the border town of Malaba, reinforcing plans to connect the two national rail systems into a continuous corridor linking Kampala to Mombasa.
Once completed, the railway is expected to significantly enhance trade flows between Uganda and Kenya, while also improving connectivity for neighbouring countries that rely on the Northern Corridor for imports and exports. The project is seen as a key pillar in efforts to strengthen intra African trade under frameworks such as the African Continental Free Trade Area.
Uganda has already signed a 2.7 billion euro contract with Turkish construction firm Yapi Merkezi for the 272 kilometre section between Tororo and Kampala. The government plans to finance the project through a combination of domestic funding and external development support, including potential contributions from international financial institutions.
The World Bank’s involvement is particularly important given the scale and complexity of the project. Large infrastructure developments in emerging economies often face funding gaps, delays and cost overruns, making concessional financing and technical support from multilateral institutions critical to their success. The Bank’s participation is expected to improve project credibility and help mobilise additional investment.
Beyond transport, the World Bank has also indicated interest in supporting Uganda’s broader development agenda, including energy expansion and agricultural industrialisation. These sectors are seen as central to job creation and long term economic transformation. In particular, value addition in agriculture remains a priority, with officials emphasising the need to move from raw commodity exports to processed goods with higher market value.
The SGR project is expected to have wide ranging economic impacts once operational. By lowering transport costs and improving reliability, it could enhance Uganda’s export competitiveness, attract new investment and stimulate industrial growth along the railway corridor. Logistics hubs, industrial parks and service centres are likely to emerge around key stations, creating additional employment opportunities.
However, challenges remain. Large scale infrastructure projects in the region have historically faced delays due to financing constraints, land acquisition issues and cross border coordination difficulties. The success of the SGR will depend on sustained political commitment, effective project management and consistent funding from both domestic and international partners.
If completed as planned, the railway could become one of the most important transport arteries in East Africa, reshaping trade patterns and strengthening economic integration across the region. The World Bank’s renewed commitment signals growing international confidence in the project, while also highlighting the strategic importance of infrastructure in unlocking Africa’s long term growth potential.
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