KAMPALA – President Yoweri Museveni has announced fresh backing from the World Bank for Uganda’s long-delayed Standard Gauge Railway (SGR) and agricultural industrialisation drive, describing the partnership as critical to lowering production costs through improved rail transport, reliable electricity, and affordable financing.
The announcement followed a meeting on Tuesday at State Lodge Nakasero with World Bank Division Director Qimiao Fan—who oversees Kenya, Rwanda, Somalia, and Uganda—and Uganda Country Manager Francisca Ayodeji Akala. Museveni welcomed the Bank’s support for upgrading the 273-kilometre Malaba–Kampala SGR line, a flagship project that has faced repeated delays due to financing constraints but is now targeting a construction start as early as April 2026.
The rail upgrade forms part of the broader East African network linking Uganda to the port of Mombasa, with the government previously engaging the Islamic Development Bank to finance a significant portion of the estimated $3.1 billion (Shs13.5 trillion) project.
In a public statement, Museveni emphasised that “railways, electricity, and affordable financing are key to lowering production costs” and enhancing competitiveness. He added a characteristically colourful remark: “The World Bank are now becoming Christians, by promoting global affluence and prosperity for everyone in the world.” The comment sparked mixed reactions online, drawing both amusement and praise from supporters who viewed it as pragmatic diplomacy.
Pro-government voices welcomed the development, describing it as a major boost to Uganda’s industrialisation agenda. Supporters argue that the SGR will connect farmers to markets, create jobs, and stimulate growth in industrial parks along the transport corridor.
However, the development comes amid debate over the proposed Protection of National Sovereignty Bill 2025. The draft law, backed by the ruling NRM caucus, seeks to tighten oversight of foreign funding, requiring disclosure within 14 days and imposing strict penalties—up to Shs2 billion in fines or 20 years’ imprisonment—for activities deemed to undermine national interests. Critics say the bill could shrink civic space and limit opposition activity.
Opposition figures and commentators have pointed to a contradiction between courting external financing and advancing legislation aimed at restricting foreign influence. Some warn that increased borrowing could deepen Uganda’s debt burden, noting that the country already has a substantial portfolio with the World Bank spanning energy, infrastructure, and refugee support. Past large-scale projects have also faced scrutiny over cost overruns, land compensation delays, and limited participation of local contractors.
Concerns persist around transparency and accountability in the SGR project. While the railway promises to reduce freight costs and accelerate industrial growth, questions remain over who will ultimately benefit, how loans will be repaid, and whether local firms will secure a meaningful share of contracts.
The government maintains that the partnership aligns with national development priorities and will deliver tangible benefits to farmers and manufacturers. As the SGR timeline advances and the sovereignty bill moves through Parliament, attention will remain fixed on whether the initiative drives inclusive growth—or adds further strain to Uganda’s fiscal position.
Ultimately, the success of the project may hinge not just on financing, but on transparency, accountability, and ensuring that development outcomes are broadly shared.
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