The Islamic Development Bank (IsDB) recently approved a financing package of €650.75 million (approximately Shs2.72 to Shs2.73 trillion) to construct Uganda’s Standard Gauge Railway (SGR).
This landmark package marks the largest single project financing Uganda has ever received and serves as a major catalyst for the country’s multi-billion dollar railway infrastructure ambitions.
The approval, granted during the 51st IsDB Group Annual Meetings held in Baku, Azerbaijan, from June 16 to 19 under the theme “Regional Integration for Sustainable Prosperity,” represents the largest amount ever approved by the Bank’s Executive Board for a single project in Uganda.
The landmark financing marks a significant milestone for the long-awaited railway project, which is expected to revolutionize cargo transportation, lower logistics costs, and enhance regional trade connectivity between Uganda, Kenya, and the wider East African region.
Uganda’s delegation to the annual meetings was led by Ramathan Ggoobi, Uganda’s Temporary Governor to the IsDB. During the engagements, Ggoobi reaffirmed the government’s commitment to achieving financial closure for the railway project by November 2026.
The funds are dedicated to the eastern route, specifically the 326km Malaba–Kampala Standard Gauge Railway .
The entire SGR network is estimated to cost roughly $3.2 billion .This IsDB approval joins previous significant financial commitments, including funding support from the African Development Bank (AfDB).
The money will facilitate the contruction of construction of a critical 553-meter bridge, a 2-kilometer underground tunnel leading into Kampala city ;six brand new stations spanning from Tororo to Kampala and dedicated mechanical and operational workshops to be built in Jinja and Tororo .
The government of Uganda aims to fully close the financing arrangements for the railway, with significant structural works expected to kickstart subsequently.
