- Improving the railway network is key for East Africa’s integration.
- The standard gauge railway (SGR) linking Kampala to Malaba in Kenya, eventually connecting to the Indian Ocean is considered a vital link.
Improving the railway network is key for East Africa’s integration. The standard gauge railway (SGR) linking Kampala to Malaba in Kenya, eventually connecting to the Indian Ocean is considered a vital link. It is an integral part of the SGR lines designed to connect East African coastal and land-locked countries as part of a pan-African infrastructure project.
Uganda recently formally terminated the $2.2 billion (€2 billion) contract with China Harbour Engineering Company (CHEC) after the China Exim Bank declined to fund the project. After discarding the Chinese partners, Kampala is turning to Turkey to build the. standard gauge railway. So far China has been enjoying a near monopoly in winning most of the contracts in the country like hydro-power and road construction projects.
Also read;
https://trendsnafrica.com/china-imposes-aggressive-repayment-terms-to-uganda/
It was reported that an MOU has been signed with Turkey as the first step towards the final contract. Turkey has been expanding its footprints in Africa. About 1500 Turkish companies have invested almost 70 billion in the continent as per reports. The single biggest foreign investment by a Turkish company is also a standard gauge railway constructed by Yapi Merkezi in Tanzania. It is reported that Yapi Merkezi has been earmarked to take over the first phase of Uganda’s standard gauge railway.
