The construction of a 273-kilometer section of Uganda’s Standard Gauge Railway (SGR) is projected to inject Shs4.3 trillion into the national economy, with the government prioritizing local content in the project.
The SGR, which will eventually span a 1,724-kilometer network connecting Uganda to its East African neighbors, has a total project cost of 2.7 billion euros (about Shs11 trillion ). However, 40% of the total cost, or Shs4.3 trillion, will remain in the local economy through local sourcing of labor and materials, according to Dr. Richard Sendi, SGR’s head of planning and strategy.
“According to the contract we signed with Yapi Merkezi, the Turkish construction firm tasked with building the SGR, 40% of the inputs as well as labor will be sourced locally,” Sendi said yesterday at the Uganda Media Centre. He added that 90% of all labor, including 50% of managerial positions, will be filled by Ugandans.
Officials are actively working to ensure the participation of local businesses. Eng. Perez Wamburu, the SGR project coordinator, said a National Content Symposium is scheduled for this Friday to highlight opportunities for local suppliers of materials like cement, steel, and aggregates, as well as providers of services such as logistics, security, and healthcare.
Wamburu said the national content strategy is also designed to promote skills development through training, educational partnerships, and technology transfer.
The project is moving forward, with preliminary construction work already underway. Wamburu said that 80% of the compensation for project-affected people has been completed, providing the contractor with the necessary right of way. He noted that land acquisition has reached Buikwe, the ninth of 12 districts along the corridor.
“Valuation reports for Mukono, Wakiso and Kampala are currently with the chief government valuer awaiting approval,” Wamburu said, adding that compensation would follow shortly. Construction is expected to begin in March 2026.
The SGR is expected to significantly reduce transport costs and travel times. Officials project that the cost per tonne-kilometer will drop from $0.155 to $0.05, and the travel time from Mombasa to Kampala will be reduced from 14 days to just one.
