Rwanda's exit casts doubts on viability of SGR

Rwanda’s Finance minister Claver Gatete. Last week, Mr Gatete announced that the country would develop its rail through Tanzania, Rwanda and Burundi because it is a more affordable option. PHOTO | NATION MEDIA GROUP

What you need to know:

  • Kenya could still gain economically, even with Rwanda’s withdrawal from the project, since South Sudan and Uganda have the bulk of cargo passing through Mombasa.
  • Kenya and Uganda are now alone in plans to construct the railway, with South Sudan expected to join in later.
  • However, Rwanda has to consult Uganda, Kenya and South Sudan at the 14th Northern Corridor Integration Projects (NCIP) Summit to make the plan official.

The decision by Rwanda to opt out of the shared standard gauge railway (SGR) deal with Kenya has cast doubt on the economic viability of the regional project.

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