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Uganda eyes Tanzania rail link to unlock new mineral export corridor

Uganda eyes Tanzania rail link to unlock new mineral export corridor

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Uganda is positioning itself for a major shift in regional trade logistics, with plans to link a new railway line under development to a rail network currently being constructed in neighbouring Tanzania. The move, revealed in a government document, signals a potentially transformative step for mineral exports in East Africa.

If implemented, the connection would open a new export corridor for Uganda’s vast mineral resources, including gold, copper, and iron-ore. The proposed link would provide access to Tanzania’s Port of Dar es Salaam, offering an alternative route to global markets and potentially easing logistical bottlenecks that exporters have long faced.

Currently, Uganda routes the bulk of its commodity exports through Kenya’s Port of Mombasa. Kampala has already announced plans to link its Standard Gauge Railway project to Kenya’s rail network, though that initiative remains in progress. The newly disclosed proposal to also connect with Tanzania marks a strategic expansion of Uganda’s regional transport ambitions.

According to the Ugandan Ministry of Works and Transport document, the railway would run from the border with Tanzania, stretch through the south and southwest of Uganda, and terminate at the town of Mpondwe on the border with the Democratic Republic of Congo.

This alignment is particularly significant, as it would serve mineral-rich zones and potentially facilitate cross-border trade into Central Africa.

The document clearly outlines the vision behind the project:

“The main objective of the project is to connect the vast and mineral-rich regions of both countries (Uganda and Tanzania) to the port of Dar es Salaam … while saving time and transportation costs,” the document said.

That objective speaks directly to one of Africa’s longstanding development challenges: the high cost of moving goods from inland production hubs to seaports. For landlocked Uganda, transport efficiency is not merely a convenience but an economic necessity. Rail infrastructure has long been seen as a catalyst for industrial growth, enabling bulk commodities to reach international buyers more competitively.

By integrating rail networks across borders, Uganda and Tanzania would deepen regional economic cooperation while unlocking new commercial opportunities. A direct rail corridor to Dar es Salaam would diversify export routes, reduce dependency on a single port, and strengthen resilience in supply chains.

The project could also expand beyond the two countries. The ministry document suggests that the Democratic Republic of Congo could seek to link into the railway at a later stage. Given eastern Congo’s rich deposits of critical minerals, such a connection could further enhance the corridor’s economic significance and position it as a major trade artery within the region.

Financing will be key to turning the proposal into reality. The document indicates that the African Development Bank could potentially fund the project. In comments to Reuters, the bank confirmed that it is reviewing a request related to the initiative.

“The bank may consider financing the project, depending on the outcomes of the studies, if the project is found to be bankable,” bank official Epifanio Carvalho de Melo said.

The African Development Bank also told Reuters it was considering a request to fund “preparation activities” for the rail project, suggesting that feasibility and technical assessments may soon move forward. Such studies will determine the economic viability, projected returns, and broader development impact of the proposed line.

For Uganda, the timing is notable. Global demand for minerals, particularly those essential for renewable energy technologies and infrastructure development, remains strong. Improving export logistics could enhance the country’s competitiveness and attract further investment into mining and processing.

A reliable rail link to Dar es Salaam could significantly reduce transportation time compared with road freight, which is often slower and more expensive for bulk materials. Lower logistics costs would not only benefit large mining companies but also smaller producers seeking access to export markets.

Moreover, the project aligns with broader continental ambitions under the African Continental Free Trade Area, which aims to strengthen intra-African trade and reduce structural trade barriers. Infrastructure connectivity remains one of the most critical pillars in achieving those goals.

While a spokesman for the Ugandan ministry could not immediately be reached for comment, the document’s contents underscore a clear policy direction. Uganda appears determined to expand its transport network footprint and leverage regional partnerships to enhance trade competitiveness.

For Tanzania, the proposal could also bring economic dividends. Increased cargo volumes through Dar es Salaam would boost port activity, create jobs, and strengthen the country’s position as a logistics hub for East and Central Africa.

If realised, the Uganda–Tanzania railway link would represent more than just steel tracks and freight wagons. It would symbolise deeper regional integration, economic diversification, and a shared commitment to unlocking Africa’s mineral wealth through modern infrastructure.

As feasibility studies progress and funding discussions unfold, industry stakeholders will be watching closely. The success of the project could reshape trade flows across East Africa and provide a blueprint for future cross-border infrastructure partnerships.A reliable rail link to Dar es Salaam could significantly reduce transportation time compared with road freight, which is often slower and more expensive for bulk materials. Lower logistics costs would not only benefit large mining companies but also smaller producers seeking access to export markets.

Moreover, the project aligns with broader continental ambitions under the African Continental Free Trade Area, which aims to strengthen intra-African trade and reduce structural trade barriers. Infrastructure connectivity remains one of the most critical pillars in achieving those goals.

While a spokesman for the Ugandan ministry could not immediately be reached for comment, the document’s contents underscore a clear policy direction. Uganda appears determined to expand its transport network footprint and leverage regional partnerships to enhance trade competitiveness.

For Tanzania, the proposal could also bring economic dividends. Increased cargo volumes through Dar es Salaam would boost port activity, create jobs, and strengthen the country’s position as a logistics hub for East and Central Africa.