Business 9 October 2026 Nile Post
Museveni: Uganda Loses $1 Billion Annually to Inefficient Transport
President Yoweri Museveni has stated that Uganda is losing an estimated $1 billion each year due to an over-reliance on road transport for heavy cargo and petroleum products. He emphasized the need to shift freight to railways and pipelines to cut costs and boost economic competitiveness. Source: https://nilepost.co.ug/news/376865/museveni-says-uganda-loses-1-billion-annually-to-road-freight-costs
President Yoweri Museveni has highlighted that Uganda incurs an annual loss of approximately $1 billion stemming from an inefficient transport system, which disproportionately uses roads for heavy cargo, petroleum, and other goods.
During Uganda’s 64th Independence Day celebrations, Museveni explained that this heavy dependence on trucks for freight escalates business costs, damages road infrastructure, and hampers the competitiveness of Ugandan products on the international market. He referred to this situation as “Katogo transport,” a Luganda term signifying the congestion and disorder arising from mixing different transport categories on the same roads.
To counter this, the President advocated for a strategic reorganisation of the transport sector. This would involve moving heavy cargo to railways, petroleum products via pipelines, and reserving road networks primarily for passenger traffic and lighter freight.
Museveni illustrated the cost disparity by comparing the transport of a 40-foot container from Uganda to Mombasa. He stated that road transport costs around $3,600, whereas rail transport is estimated at $1,600, representing a significant saving.
Beyond direct transport expenses, Museveni pointed out that heavy trucks contribute to road damage, thereby increasing infrastructure maintenance costs. He indicated that the government is pursuing a multi-modal transport strategy, including the rehabilitation of the metre-gauge railway and the development of the Standard Gauge Railway (SGR). Plans are also in motion to establish pipelines for petroleum products and extend railway networks to resource-rich areas like Karamoja to reduce the strain on road infrastructure.
The President linked these transport reforms to Uganda’s broader economic goals, emphasizing that reducing logistics costs is crucial for enhancing business profitability, supporting industrialisation, and making locally produced goods more competitive in global markets. He noted that Uganda’s economy has grown significantly, leading to increased pressure on its transport infrastructure, underscoring the urgency of diversifying freight movement across various transport modes.