Inside Orascom Construction, the company behind Kampala’s rail system

The Government of Uganda has taken a new step towards building a modern urban rail system after signing a Memorandum of Understanding with Egypt’s Orascom Construction Company to study a proposed Light Rail Transit system for the Greater Kampala Metropolitan Area.

The agreement was signed on March 14, 2026 by the Permanent Secretary in the Ministry of Works and Transport, Bageya Waiswa, and witnessed by the Minister of Works and Transport, Edward Katumba Wamala.

Under the arrangement, Orascom Construction will conduct an 18-month feasibility study to determine whether a rail-based mass transit system in and around Kampala is technically and financially possible.

The study will examine major commuter corridors such as Kampala–Entebbe, Kampala–Kira and Kampala–Wakiso, which carry some of the heaviest traffic flows in the metropolitan area.

It will assess possible rail routes, the number of passengers likely to use the system, infrastructure needs and potential sources of funding before any final investment decision is made.

Officials say a Light Rail Transit system could carry up to 15,000 passengers per hour in each direction once operational. Light Rail Transit refers to an electric rail system designed for cities.

It carries large numbers of passengers quickly and runs on dedicated tracks, making it faster and more reliable than road transport.

The project forms part of Uganda’s long-term plan to create a Mass Rapid Transit system for the capital by 2040. Kampala’s fast population growth and rising car ownership have led to severe traffic congestion.

Studies estimate that congestion costs the local economy about $1.5 million per day.

While the feasibility study will determine whether the project proceeds, the company tasked with carrying out the assessment is one of the largest construction groups to emerge from Africa.

Orascom Construction traces its roots to 1950, when Egyptian entrepreneur Onsi Sawiris started a construction business in Upper Egypt. The company gradually expanded beyond Egypt and formally became Orascom Onsi Sawiris & Co. in 1976.

Over the decades it evolved from a local contractor into an international engineering and infrastructure company operating across the Middle East, Africa and the United States.

Today Orascom Construction is a publicly listed company with its main stock market presence in Abu Dhabi and a secondary listing in Egypt. The company remains largely controlled by the Sawiris family, one of Egypt’s most prominent business dynasties.

According to company disclosures, businessman Nassef Sawiris and related entities control more than 40 per cent of the firm, while other family members hold additional shares.

Orascom Construction specialises in large infrastructure and industrial projects. Infrastructure refers to the major physical systems that support a country’s economy, such as railways, power plants, water systems and large public buildings.

Among its flagship projects is the Grand Egyptian Museum near the pyramids in Giza, one of the largest museum complexes ever built.

The company has also worked on major rail systems including Egypt’s monorail network, sections of the Greater Cairo Metro, and parts of Egypt’s emerging high-speed railway system.

A monorail is a train that runs on a single rail, often elevated above roads. High-speed rail refers to trains designed to travel at much higher speeds than conventional railways.

In the energy sector, Orascom has built or participated in projects generating more than 30 gigawatts of electricity, equivalent to the output of dozens of large power stations.

The company has also constructed major water and wastewater treatment plants, including the Bahr El Baqr wastewater treatment facility, considered one of the largest of its kind in the world. Wastewater treatment plants clean used water before it is released back into the environment or reused.

Orascom operates in more than 25 countries and employs tens of thousands of people globally.

Although best known for projects in Egypt and the Middle East, Orascom has also worked in several African countries. One recent example is the Jiji hydropower project in Burundi, which was inaugurated in June 2025.

Such projects show the company’s experience working on complex infrastructure in developing economies, where financing, engineering and logistics can be challenging.

The agreement with Uganda does not yet involve construction of the rail system itself. Instead, Orascom will study whether the project is viable.

A feasibility study is an in-depth assessment that determines whether a project can realistically be built and operated. It evaluates costs, potential revenues, technical design, environmental impacts and social considerations.

The study is expected to help government determine whether Kampala’s proposed Light Rail Transit network should proceed to the construction stage.

“This is a crucial step towards addressing the city’s growing transportation challenges,” said Minister Edward Katumba Wamala during the signing ceremony.

Urban planners say a high-capacity rail system could transform mobility in the metropolitan region, which includes Kampala, Wakiso, Mukono and Mpigi districts.

If the feasibility study confirms the project’s viability, it could pave the way for Uganda’s first urban rail transit system, potentially reshaping how millions of residents move across the capital.

For now, Orascom Construction’s role will be to determine whether that vision can become reality.