Overview:

Regional trade set for a boost as Uganda and Tanzania sign a formal agreement to link the Central Corridor SGR network to the border at Murongo and Kikagati.

Dar es Salaam — Uganda and Tanzania have signed a formal agreement to fast-track the development of a strategic railway linking the port of Dar es Salaam to its landlocked neighbors.

The deal, finalized during a three-day Joint Permanent Commission in the Tanzanian capital, focuses on the Isaka-Lusahunga-Murongo Standard Gauge Railway (SGR). The project recently gained international backing after being prioritized for technical assistance and early-stage financing by the African Development Bank.

John Mulimba, Uganda’s minister of state for foreign affairs, said the session marked a shift from political vision to economic execution. He noted that moving to an electric-powered rail system could cut regional logistics costs for heavy freight by nearly 50 percent, reducing transit times from several days to less than 24 hours.

The railway is intended to create a high-capacity trade artery between Tanzania, Uganda and the Democratic Republic of Congo.

Uganda and Tanzania have agreed to eliminate all outstanding non-tariff barriers in a decisive move to fix a trade relationship currently weighed down by a 9 trillion shilling ($2.4 billion) imbalance.
Uganda and Tanzania have agreed to eliminate all outstanding non-tariff barriers in a decisive move to fix a trade relationship currently weighed down by a 9 trillion shilling ($2.4 billion) imbalance.

The bilateral talks, co-chaired by Tanzanian Foreign Minister Mahmoud Thabit Kombo, were the first held by the commission in four years. Beyond transport, the agenda covered diplomacy, health and energy infrastructure.

Vincent Waiswa Bagiire, the permanent secretary for Uganda’s Ministry of Foreign Affairs, confirmed that the East African Crude Oil Pipeline (EACOP) is now 79 percent complete. Technical teams have been ordered to resolve final border issues to ensure the project meets its October 2026 export targets.

Further agreements were reached regarding a natural gas pipeline from Tanzania to Uganda and a refined petroleum products pipeline heading to the port of Tanga.

The commission also highlighted improvements to Lake Victoria connectivity with the commissioning of the MV New Mwanza, the largest freshwater vessel in Africa. Other milestones noted include the 24-hour operation of the Mutukula border post and the completion of the 14-megawatt Kikagati-Murongo hydropower project.