Museveni Says Uganda Loses $1 Billion Annually to Road Freight Costs

What the report says

President Yoweri Museveni said Uganda is losing about $1 billion a year because too much freight moves by road instead of by rail, pipeline and other transport channels. He made the remarks during Independence Day celebrations at State House, Entebbe, according to Nile Post, arguing that the current system raises business costs, damages roads and weakens the country’s competitiveness.

Museveni said heavy cargo should be shifted to railways, while petroleum products should move through pipelines and roads should be reserved mainly for passengers and lighter goods. He said trucking a 40-foot container to the port of Mombasa costs far more than moving the same load by rail, and he linked the difference to higher prices for businesses and extra strain on public infrastructure. He also said the mix of cargo, fuel tankers and passenger traffic on the same roads creates congestion and inefficiency.

The president said government plans include rehabilitating the metre-gauge railway, developing the Standard Gauge Railway and expanding rail links to strategic areas such as Karamoja. He also said Uganda is working with Kenya on pipeline infrastructure, with longer-term plans to extend connections toward the Democratic Republic of Congo.

Museveni framed the transport changes as part of a wider push for industrialisation and greater value addition, saying lower logistics costs would help local producers compete in regional and international markets. The remarks come as Uganda’s economy grows, but its roads and freight network face increasing pressure from heavier traffic and rising vehicle numbers.