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Uganda to Extend Railway to Tanzania for Trade Boost

  //politics-government.news-articles.net/content/ .. -extend-railway-to-tanzania-for-trade-boost.html
  Published in Politics and Government on Monday, February 23rd 2026 at 10:05 GMT by reuters.com
      Locales: UGANDA, TANZANIA UNITED REPUBLIC OF

KAMPALA, Uganda - February 23rd, 2026 - Uganda is aggressively pursuing plans to extend its newly completed Standard Gauge Railway (SGR) line into Tanzania, a move poised to reshape trade logistics and potentially unlock significant economic growth for the landlocked nation. Transport Minister Fred Byamukama revealed on Friday that connecting to the Tanzanian rail network is "critical" for Uganda, offering a vital alternative export route currently heavily reliant on Kenya.

Uganda recently celebrated the completion of a crucial segment of its SGR, linking Kampala, the nation's capital, to Malaba - the border town with Kenya. While this connection represents a significant leap forward in modernizing Uganda's infrastructure, officials acknowledge the need to further diversify export pathways. For years, Ugandan goods have predominantly flowed through the port of Mombasa in Kenya. However, Mombasa has been plagued by recurring issues of congestion, delays, and reliability concerns, significantly impacting the cost and efficiency of Ugandan exports. This dependency has created a vulnerability in the supply chain, hindering Uganda's ability to compete effectively in international markets.

The proposed rail link to Tanzania, specifically accessing ports like Dar es Salaam, aims to address this vulnerability head-on. Dar es Salaam has been undergoing substantial port modernization and expansion projects in recent years, increasing its capacity and efficiency. This makes it an increasingly attractive alternative for Ugandan exporters. A direct rail connection would bypass the logistical bottlenecks at Mombasa, reducing transit times and costs, and improving the overall competitiveness of Ugandan goods, particularly agricultural products like coffee, tea, and flowers.

This ambitious project isn't just about alleviating congestion; it's a key component of a broader regional vision to establish a fully integrated East African railway network. Supported by significant investment from China, this network intends to connect Uganda, Tanzania, Kenya, Rwanda, Burundi, and potentially South Sudan, fostering greater regional trade and economic cooperation. The SGR aims to facilitate the seamless movement of goods across borders, reducing reliance on expensive and often inefficient road transport.

The economic implications for Uganda are potentially transformative. By opening up new export markets and streamlining the export process, the Tanzanian rail link could spur significant growth in key sectors. Reduced transportation costs will improve profit margins for Ugandan businesses, encouraging investment and job creation. Furthermore, the enhanced connectivity could attract foreign investment, particularly in industries geared towards export.

However, the project isn't without its challenges. Byamukama confirmed that feasibility studies for the Tanzania link are slated to begin imminently, and securing funding remains a key priority. The costs associated with constructing a cross-border railway line are substantial, requiring careful financial planning and international partnerships. Negotiations with Tanzania regarding cross-border regulations, tariffs, and operational agreements will also be crucial to ensure a smooth and efficient integration of the two railway networks. The terrain between Uganda and Tanzania also presents geographical challenges that will need to be addressed during the construction phase.

Beyond the logistical and financial hurdles, political stability and regional cooperation are vital for the project's success. Maintaining strong diplomatic ties with both Tanzania and Kenya is paramount. Competition between ports is natural, but a collaborative approach focusing on regional economic growth will ultimately benefit all parties involved.

Analysts suggest that the success of this project will depend not only on the physical infrastructure but also on the development of supporting infrastructure, such as modern warehousing facilities and efficient customs procedures. Integrating digital technologies for tracking and managing freight will also be essential to maximize the benefits of the new railway line.

The Ugandan government is optimistic that the Tanzanian rail link will serve as a catalyst for economic transformation, positioning the country as a key trade hub in East Africa. The coming months will be crucial as feasibility studies are completed and funding is secured, laying the groundwork for a new era of connectivity and economic prosperity.