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AfDB lines up $650 million for Uganda’s SGR project, ministry says

By HER staff reporter

The Ministry of Finance of Uganda has announced that the African Development Bank (AfDB) plans to provide $650 million in funding for Uganda’s Standard Gauge Railway (SGR) project. It is believed that this mega railway construction project will modernize Uganda’s transport sector to a high standard and strengthen trade ties in East Africa.

This Standard Gauge Railway (SGR) project will connect the capital city, Kampala, with various major cities and regions across the country. Among these are Mukono, Jinja, Iganga, Namutumba, Butaleja, and Tororo. The railway line is specifically designed to ease import and export trade with neighboring countries and drastically reduce transport costs. Since Uganda is a landlocked country, this railway line will play a significant role in smoothing the journey to the Kenyan port of Mombasa.

The Government of Uganda has stated that a total expenditure of 2.7 billion Euros (or 3.15 billion US Dollars) is required to build this massive project. In 2024, Uganda awarded the construction work of the project to the Turkish construction giant Yapi Merkezi. The company is well-known for executing similar railway construction projects in East Africa, having completed comparable works in Tanzania.

Although the Ugandan government has not yet been able to fully mobilize the total amount of money required for the project, the ministry noted that preliminary work and initial phases of construction have already begun. The $650 million pledged by the African Development Bank is expected to create a major boost for this project, which had been facing funding shortages.

Meanwhile, other major news stories are also emerging out of Uganda. Among these, it has been reported that Etilu, the current Member of Parliament (MP) for Amuria, remains in custody. Law enforcement and detectives apprehended him at the residence of the embattled former Speaker of Parliament, Annet Anita Among. This arrest has become a major talking point on the country’s political stage.

Additionally, the Parliament of Uganda is scheduled to debate the structural number of ministers. This discussion was prompted by General Muhoozi Kainerugaba’s recent public and sharp criticism of the Cabinet appointments.  Following Muhoozi’s questioning of the appointment process and the competence of the appointees, Parliament was compelled to urgently debate the matter.

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