Turkish engineering firm Yapi Merkezi has won a $3 billion contract to construct a 272-kilometer railway line connecting Kampala to Malaba, a key Ugandan border point with Kenya, the country’s preferred route for port access.
This project marks one of the most substantial international undertakings for a Turkish construction company.
Perez Wamburu, coordinator of Uganda’s Standard Gauge Railway (SGR) project, shared that this agreement covers the first phase of a planned 1,700 km electric railway network, with a projected cost of €2.7 billion ($3 billion).
This rail line aims to significantly reduce transit times for goods moving through Kenya’s Port of Mombasa, according to Uganda’s Minister of Transport and Works, General Katumba Wamala.
Construction is scheduled to begin in November, with completion targeted within four years. The new railway link is expected to strengthen trade and lower transportation costs, said Bageya Waiswa, permanent secretary of Uganda’s Works Ministry, during the signing ceremony in Kampala.
Waiswa and Yapi Merkezi’s vice chairman, Erdem Arıoğlu, signed the agreement in the presence of Turkish Ambassador Fatih Ak, among other officials.
Yapi Merkezi noted on social media that this is one of its largest international projects to date.
Uganda plans to finance the construction through a combination of domestic resources and loans from export credit agencies.
Ambassador Ak emphasized Türkiye’s commitment to supporting Uganda’s railway modernization through engineering expertise, underscoring the importance of the contract in advancing Uganda’s regional trade goals.
The new railway will integrate Uganda’s rail system with Kenya’s, connecting to the Indian Ocean seaport in Mombasa.
In 2015, Uganda had initially signed a deal with China Harbour Engineering Company (CHEC) for the project, but the arrangement ended when China Exim Bank declined financing.
Uganda subsequently engaged with Yapi Merkezi, canceling its agreement with CHEC last year.
Founded in 1965, Yapi Merkezi is now the second major Turkish firm to secure a significant infrastructure project in Uganda, following Polat Yol Yapi’s work on the 92-kilometer Muyembe-Nakapiripirit road, which links Uganda to Kenya, South Sudan, and Ethiopia.
Turkish firms are making substantial inroads across Africa, completing over 1,860 projects worth $85.4 billion by the end of 2023, according to Türkiye’s Foreign Economic Relations Board.
Turkish investments in Africa now exceed $10 billion, creating employment for more than 100,000 Africans.
Türkiye’s relationship with Africa has deepened under President Recep Tayyip Erdoğan, who has fostered diplomatic and economic ties since taking office.
This growing engagement has led to Türkiye’s trade with Africa reaching $41 billion by the end of 2022, up from $5.4 billion in 2003, supporting partnerships focused on infrastructure, economic development, and mutual growth.
