The World Bank has deepened its commitment to finance Uganda’s long-delayed Standard Gauge Railway (SGR), as Yoweri Kaguta Museveni pressed for investments aimed at lowering production costs and boosting exports.

The pledge followed a high-level meeting at State Lodge Nakasero between Museveni and a World Bank delegation led by Qimiao Fan, the bank’s Division Director for Kenya, Rwanda, Somalia and Uganda.

The delegation included Country Manager Francisca Ayodeji Akala and senior operations officials.

Senior Ugandan officials present included Finance Minister Matia Kasaija, Attorney General Kiryowa Kiwanuka and Permanent Secretary/Secretary to the Treasury Ramathan Ggoobi, underscoring the government’s push to close financing for the project.

The World Bank’s support will target the 273-kilometre Malaba–Kampala SGR, a key corridor intended to link Uganda to Kenya’s railway network and ease cargo movement along the Northern Corridor.

Museveni welcomed the lender’s role not only in financing but also in structuring sustainable funding models for the project.

“These are the funds I want. I want funds for capacity building and to give the basics for production at lower costs,” he said.

He emphasised that the railway is central to Uganda’s strategy of reducing transport costs and reorganising the logistics system.

“That’s why we are saying the railway should be for heavy cargo, the pipeline for petroleum products. The railway and water transport for cargo whereas roads will remain for passengers and light cargo,” Museveni added.

The president linked the SGR to broader economic priorities, highlighting affordable electricity, low-cost financing and efficient transport as key drivers of industrial growth.

Museveni in a group photo with World Bank and government officials

World Bank officials signalled readiness to back the project.

“I’m happy to say that I have the documents and the World Bank seriously pledges to support you financially,” Qimiao Fan said, adding that the lender will prioritise investments in transport and energy as engines of sustainable development.

The financing push comes as Uganda seeks to overcome years of delays in securing funding for the SGR after earlier negotiations with Chinese lenders failed to reach closure. 

Multilateral backing is expected to involve concessional and blended financing structures, easing pressure on public debt.

Uganda currently relies heavily on road transport, with about 90% of cargo moved by trucks, contributing to high logistics costs and congestion.

The SGR could cut freight costs by 30–40% and significantly reduce transit times for key imports and exports.

The World Bank is also backing Uganda’s agro-industrialisation strategy, with Museveni welcoming support for value addition in agriculture.

“I’m also happy with the proposal to support agricultural industrialisation and agro-processing,” he said, stressing the need to move beyond raw material exports.

The integrating rail infrastructure with agro-processing zones will help farmers access markets more efficiently, reduce post-harvest losses and expand export potential.

The renewed financing momentum comes against the backdrop of accelerating regional rail development.

Kenya recently launched construction of its 370-kilometre Naivasha–Kisumu–Malaba SGR extension, which is expected to link directly to Uganda at Malaba and strengthen the Northern Corridor, handling over 30 million tonnes of cargo annually.