AfDB commits Shs 2.4trn to Uganda’s SGR project
KAMPALA, June 1, 2026 — The African Development Bank [AfDB] has reaffirmed its commitment to financing the construction of Uganda’s long-awaited Standard Gauge Railway [ SGR ], providing a major boost to the country’s infrastructure development and economic transformation agenda.
The commitment was announced during a high-level meeting held on the sidelines of the 2026 African Development Bank Annual Meetings in Brazzaville, Republic of Congo, where the Bank’s Vice-President for Regional Development, Integration and Business Delivery, Abdul Kamara, met a Ugandan delegation led by Mustapha Achidri, Assistant Commissioner at the Ministry of Finance and Uganda’s Temporary Governor to the Bank.
Kamara confirmed that the AfDB is ready to support the construction of the 326-kilometre Malaba–Kampala section of the SGR, describing the project as one that aligns with the Bank’s broader vision of developing resilient and transformative infrastructure across Africa.
“The SGR project is well aligned with the Bank’s cardinal priority of building resilient infrastructure on the African continent,” Kamara said.
The Bank has tentatively allocated 480 million Units of Account, equivalent to approximately US$ 650 million [about Shs 2.4 trillion], towards the project. Final financing arrangements are expected to be concluded during an appraisal mission scheduled for June 2026, subject to approval under the African Development Fund [ADF-17].
The latest commitment marks a significant milestone for Uganda, which has spent years seeking financing and implementation partners for the railway project, widely regarded as a key driver of trade, industrialisation and regional integration.
The Malaba–Kampala line forms part of a wider regional railway network intended to connect Uganda with Kenya and eventually other East African countries. Once completed, the railway is expected to reduce cargo transport costs, ease pressure on road infrastructure and improve trade efficiency between the Port of Mombasa and Uganda’s inland markets.
Ugandan officials welcomed the Bank’s support, saying the railway remains central to the Government’s Tenfold Growth Strategy aimed at accelerating economic growth and enhancing competitiveness.
Achidri revealed that the Government is mobilising approximately €2.7 billion to finance the broader SGR infrastructure programme.
He described the railway as “a key enabler under the Tenfold Growth Strategy”, noting that improved transport infrastructure would stimulate investment, boost exports and support industrial development.
Achidri also thanked the AfDB for its continued support towards Uganda’s development priorities. He cited recently approved projects, including additional financing of €7.33 million for the Uganda Rural Electrification Project I and €101.23 million for the Uganda Rural Electrification Access Project Phase II.
The meeting also served to strengthen Uganda’s engagement with the Bank following the election of Sidi Ould Tah as President of the African Development Bank Group.
On behalf of the Government of Uganda, Achidri congratulated Ould Tah and pledged Uganda’s support during his tenure.
“The Government of Uganda pledges its support to your endeavours during your tenure,” he said.
Beyond infrastructure financing, the AfDB pledged US$1 million in emergency assistance to support Uganda’s Ebola response efforts.
The funding comes as Uganda continues to strengthen disease surveillance, emergency preparedness and public health interventions following renewed concerns over Ebola outbreaks in parts of the region.
Officials said the support would reinforce ongoing efforts by health authorities to contain the disease and protect vulnerable communities.
Observers noted that the Bank’s commitments to both infrastructure development and public health underscore its broader role in supporting African countries beyond traditional development financing.
The meeting was attended by several senior AfDB officials, including Bhebhe Themba, AfDB Country Manager for Uganda; Yvette Glele Ahanhanzo, Director for Regional Development, Integration and Business Delivery; and Maria Antonia Joy Kategekwa, Director of the Regional Coordination Office.
Uganda’s Standard Gauge Railway project is widely viewed as a transformative initiative capable of reshaping the country’s transport and logistics sector. The railway is expected to provide faster, safer and more efficient cargo and passenger services while positioning Uganda as a strategic trade and transit hub within the East African region.
Analysts believe the latest commitment from the African Development Bank could help revive momentum behind the project after years of delays linked to financing challenges and regional coordination issues.
If successfully implemented, the SGR is expected to support industrial parks, agricultural exports, mineral transportation and oil sector logistics, while reducing the high cost of doing business associated with road transport.
The development also signals growing confidence among international financial institutions in Uganda’s long-term infrastructure ambitions and economic growth prospects.
With financing discussions entering the appraisal phase this month, attention will now turn to final approvals and implementation timelines that will determine when construction of the Malaba–Kampala section can begin.
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