Uganda
Following two significant contract awards that indicate a renewed commitment to economic growth, urban transformation, and regional connectivity, Uganda is embarking on a new era of massive infrastructure development. The government is taking decisive action to modernise transport systems throughout the nation, from the long-awaited Standard Gauge Railway (SGR) to the strategic revitalisation of Kampala's inner-city roads.
Yapim of Turkey Gains a €2.7 Billion Contract for SGR Construction
One of Uganda's most ambitious infrastructure projects to date, the Standard Gauge Railway (SGR), was awarded a historic €2.7 billion contract in October 2024 to the Turkish engineering behemoth Yapim.
The scope of the project
The 1,700 km of contemporary railway included in the SGR project are intended to connect Uganda with regional trade routes. The first phase lays the groundwork for a high-capacity, high-speed cargo and passenger system along a 273-kilometer stretch from Alaba to Kampala.
Financial Organisation
The model of financing comprises:
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15% equity contributed by the Ugandan government
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Debt financing secured 85% of the total
This arrangement shows a strong commitment from the government while utilising foreign funding to fill infrastructure gaps.
Influence on Regional Business
It is anticipated that the contract will have major economic ramifications:
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creation of jobs in construction, logistics, and engineering
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New supply chances for regional material suppliers
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Ugandan subcontractors' involvement in equipment supply, technical services, and civil construction
It is projected that the SGR will lower transportation costs, increase Uganda's competitiveness as a regional logistics hub, and open up new trade opportunities with nearby nations.
KCCA Starts a Significant Project to Rebuild Urban Roads
The Kampala Capital City Authority (KCCA) began rebuilding 15 key city roads in June 2025, marking another significant infrastructure milestone. The programme is a component of Kampala's larger urban renewal strategy, which aims to improve mobility, modernise road infrastructure, and boost the capital's economy.
Completion Schedule
The project, which will be completed in phases across several city divisions, is expected to be finished by September 2026.
Roads in Need of Reconstruction
Under this contract, important roads include:
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Kiwanuka Street, Ben
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Khamis Road, Rashid
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Ginnery Street
These roads are essential transport hubs supporting daily commuter activity, business operations and trade, especially in the crowded Central Division.
Impact Expected
When the improved roads are finished, they will:
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Enhance the flow of traffic in Kampala's busiest areas
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Boost safety for pedestrians
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Increase corporate productivity
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Cut down on travel time and expenses related to traffic
The project is in line with KCCA's long-term goal of developing a modern, efficient, and accessible capital city.
The Infrastructure Momentum in Uganda Persists
The SGR project and the KCCA road reconstruction programme together show Uganda's deliberate efforts to update important national and local transportation networks. These significant contract awards demonstrate the government's dedication to boosting mobility, boosting economic competitiveness, and laying the groundwork for future expansion.
Uganda's infrastructure landscape is poised for significant change as construction picks up speed over the coming years, with advantages including increased trade efficiency, urban development, job creation, and regional integration.
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