In a boost for the railway infrastructure in Uganda, the country has signed a Memorandum of Understanding with the UAE to Invest in Uganda Rail Infrastructure. This move is seen to advance in the country’s efforts for investments in both the rail and transport sector in general.
This agreement was signed at the event of President Museveni’s four-day working visit to the UAE. This move marks a major milestone in the ambitious plans of Uganda to extend the Standard Gauge Railway (SGR).
Also read: Uganda Inaugurates Tororo-Kampala SGR Construction Works
UAE to Invest in Uganda Rail: MOU Signed
This MOU was signed by the Attorney General of Uganda Hon.Kiryowa Kiwanuka and UAE’s Minister of Investment Mohamed Hassan Al Suwaidi.
Uganda’s $2.5 billion railway project is foreseen to play a vital role in linking Uganda to Kenya’s SGR at Malaba. This railway project will open up a seamless trade corridor to the Port of Mombasa.
However, State House did not reveal further details regarding this arrangement that was reached.
Kenya and Uganda Jointly Seek UAE’s Support for SGR Project
On a similar undertaking, the Kenyan president William Ruto also recently made an announcement regarding the project. He announced plans of working with Uganda to secure UAE’s investment in the $5.3 billion Naivasha-Malaba standard gauge railway project.
Also read: Kenya’s SGR Extension Seeks UAE Partnership
Both Kenya and Uganda have been seeking financial support from Chinese banks, but their efforts have been in vain. The UAE government seems to have agreed on funding the project. Despite this lack of support from Chinese side, the China Road and Bridge Corporation was instrumental in constructing Kenya’s SGR.
The SGR is currently under construction in Uganda. This railway project will lower transportation costs and boost trade efficiency. For the bigger picture, it will strengthen Uganda’s position as a land-linked hub in East Africa.
Furthermore, the SGR project will spearhead the broader economic goals of the region by facilitating faster movement of both goods and people.
Also read: Kenya-Uganda SGR Commercial Contract Signed Amid Extension Plans
