Uganda Secures €650.75 Million IsDB Financing to Accelerate Standard Gauge Railway and Boost Regional Trade
Uganda has secured Shs2.73 trillion (€650.75 million) in financing from the Islamic Development Bank (IsDB) to accelerate construction of key sections of the long-awaited Standard Gauge Railway (SGR), a landmark project expected to strengthen regional trade and improve connectivity with the Port of Mombasa.
Approved during the 51st Islamic Development Bank Group Annual Meetings in Baku, Azerbaijan, the financing is the largest single project loan ever approved by the IsDB for Uganda.
The investment will support construction of critical sections of the 272-kilometre Malaba-Kampala Standard Gauge Railway, including the 553-metre Jinja Nile Bridge, a 2.12-kilometre tunnel linking Mbuya and Kampala, six railway stations and three maintenance workshops.
The Malaba-Kampala line forms the backbone of Uganda’s national SGR network and will connect directly with Kenya’s Standard Gauge Railway, creating a continuous freight corridor from the Port of Mombasa to Uganda and the wider Great Lakes region.
The railway is expected to reduce cargo transit times, lower transport costs, ease highway congestion and improve access to international markets.
Uganda’s delegation to the annual meetings was led by Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, who described the financing as a major step towards closing the country’s infrastructure gap and strengthening regional economic integration.
The total cost of the Malaba-Kampala SGR is estimated at Shs11.34 trillion (€2.7 billion).
With the IsDB financing covering nearly one-quarter of the project cost, Uganda still needs to mobilise approximately Shs8.61 trillion to achieve full financial closure.
Construction has already commenced under President Yoweri Museveni, with Turkish engineering firm Yapi Merkezi awarded the contract.
The company has previously delivered major railway projects across Africa, including Tanzania’s Standard Gauge Railway.
The financing further strengthens Uganda’s partnership with the Islamic Development Bank.
As of May 2026, the Bank had eight active public sector operations in Uganda worth approximately US$896.55 million, with around US$721 million invested in transport infrastructure to support regional connectivity and long-term economic growth.
