World Bank to finance Uganda's SGR project

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The World Bank is to support the development of the Standard Gauge Railway (SGR), through financing and by assisting in structuring sustainable funding mechanisms for the project.

This was revealed on Tuesday during a meeting with President Yoweri Museveni held at State Lodge, Nakasero, with a delegation from the World Bank.

(PPU)

The WB team was led by Mr Qimiao Fan, Division Director for Kenya, Rwanda, Somalia, and Uganda, who was accompanied by the World Bank Country Manager for Uganda, Ms Francisca Ayodeji Akala and Ms Tonderai Fadzai Mukonoweshuro, the Senior Operations Officer at the World Bank in Zimbabwe.

During the meeting, President Museveni welcomed the World Bank’s decision to support the development of the Standard Gauge Railway (SGR), both through financing and by assisting in structuring sustainable funding mechanisms for the project.

President Yoweri Museveni. (PPU)

(PPU)

“These are the funds I want. I want funds for capacity building and to give the basics for production at lower costs,” he said, according to the release from the Presidential Press Unit.

President Museveni further noted that the railway is a crucial component in reducing the cost of transportation and enhancing regional connectivity.

“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,” President Museveni added.

(PPU)

He highlighted affordable electricity, access to low-cost financing, and efficient transport systems as key drivers of economic growth.

President Museveni also expressed satisfaction with the World Bank’s proposal to support agricultural industrialisation. 

“I’m also happy with the proposal to support agricultural industrialisation and agro-processing,” he added.

He further underscored the importance of value addition in agriculture to boost productivity, create employment, and expand export potential.

“The system here, even in university, was to train people, even those doing a Bachelor of Science in Agriculture, and their job was to produce the raw materials, but no value addition was taught,” he said. 

Museveni commended the World Bank for its continued partnership and its commitment to promoting shared prosperity and inclusive development across the globe.

The release reveals that Mr Qimiao commended Uganda for its continued efforts towards economic stability and growth, and pledged to financially support projects such as the SGR.

“I’m happy to say that I have the documents and the World Bank seriously pledges to support you financially,” Mr Qimiao said.

He also affirmed the World Bank’s commitment to supporting investments in energy and transport, highlighting the sectors as key drivers of sustainable development.

Mr Qimiao added that the World Bank is committed to supporting agribusiness by providing training, and this is expected to boost value addition and skills enhancement in the agriculture sector. “These are the funds I want. I want funds for capacity building and to give the basics for production at lower costs,” he said, according to the release from the Presidential Press Unit.

Several government officials at the Tuesday meeting included: The Minister of Finance, Planning and Economic Development, Matia Kasaija, Attorney General, Kiryowa Kiwanuka, the Permanent Secretary for the Ministry of Finance, Mr Ramathan Ggoobi, plus Ms Maris Wanyera, the Acting Director of debt and cash policy at the Ministry of Finance.