The Ugandan government has reaffirmed its commitment to local content in the development of the Standard Gauge Railway (SGR) project, emphasizing the need for local businesses and communities to benefit from the multibillion-dollar venture.
During the signing of the Engineering, Procurement, and Construction (EPC) contract between the Ugandan government and Turkish firm Yapi Merkezi, Gen Katumba Wamala, the Minister of Works and Transport, highlighted the importance of local content.
“I task Yapi to ensure that local content provisions are adhered to. We have people producing steel, cement, and others. I need you to support them, and they need to feel the project,” he said.
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Gen Wamala called upon Yapi Merkezi to utilize local contractors, citing previous successful collaborations.
“Ugandans have supplied materials during projects such as the construction of the Nile bridge. Make use of them so that they have a feel for and benefit from the project,” he noted.
The Permanent Secretary and Secretary to the Treasury (PSST) of the Ministry of Finance, Planning, and Economic Development, Ramathan Ggoobi, emphasized Gen Wamala’s statements, saying, “We are pushing to improve the structure of the economy. The SGR is one of those projects that feed into this agenda. There are a few projects in Africa that are viable, and the SGR is one of the most viable.”
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The SGR project’s local content strategy ensures that at least 40% of materials and services are sourced from local suppliers, and at least 80% of the project’s workforce is comprised of Ugandans.
H.E. Fatih Mehmet noted, “The SGR is a catalyst for regional integration and economic transformation. The railway will increase the flow of goods along the Kampala-Mombasa route and make Ugandan exports more competitive in the regional and global market.”
The $2.3 billion project, expected to take 42 months to complete, will revolutionize Uganda’s transportation sector, reducing travel time and increasing efficiency.
