KAMPALA, June 21, 2026 — The Executive Board of the Islamic Development Bank [ IsDB ] has approved financing worth €650.75 million [approximately Shs 2.8 trillion] for Uganda’s Standard Gauge Railway [ SGR ], marking the largest single project financing ever approved by the bank for Uganda.
According to the Finance ministry, the approval was granted on the sidelines of the 51st Islamic Development Bank Group Board of Governors’ Annual Meetings, held in Baku, Azerbaijan, from June 16-19, 2026 under the theme, “Regional Integration for Sustainable Prosperity.”
Uganda’s delegation was led by the Permanent Secretary and Secretary to the Treasury [PSST], Ramathan Ggoobi, who served as Temporary Governor during the meetings and reaffirmed the Government’s commitment to achieving financial closure for the railway project by November 2026.
“This approval demonstrates strong confidence in Uganda’s infrastructure agenda and our commitment to achieving financial closure for the Standard Gauge Railway project by November 2026,” Ggoobi said.
The IsDB financing will support construction of critical infrastructure along the railway corridor, including the 553-metre Jinja Nile Bridge, the 2.12-kilometre Mbuya–Kampala tunnel, six railway stations in Tororo, Iganga, Jinja, Lugazi, Kampala East and Kampala City, and three workshops located in Kampala East, Jinja and Tororo.
The Standard Gauge Railway is expected to improve Uganda’s regional connectivity, reduce transport costs and strengthen trade competitiveness.
As of the end of May 2026, Uganda and the Islamic Development Bank had signed eight public operations — comprising loans and grants — worth US$896.55 million. The portfolio is dominated by the Integrated Transport Infrastructure Services Programme, with projects valued at US$721 million.
Other projects financed by the bank in Uganda include Technical and Vocational Education and Training; the upgrading of the Muyembe–Nakapiripirit Road; the Rwenkunye–Apac–Lira–Acholibur Road Project; and irrigation schemes in Unyama, Namalu and Sippi.
Additional infrastructure projects supported by IsDB include upgrading national roads, including the Katine–Ochero road and associated town access roads in Kaberamaido and Kalaki, construction of the Masindi Port Bridge, and upgrades to roads linking Kyenjojo, Kihura, Bwizi, Rwamwanja, Kahunge and Mpara.
The bank is also financing the Kumi–Ngora–Serere–Kagwara Road project and the establishment of regional oncology centres in Arua and Mbale.
Speaking at the Governors’ Roundtable, Ggoobi welcomed the launch of the IsDB Concessional Fund [ICF] in 2026, which aims to increase concessional financing to approximately 15 per cent of the bank’s annual approvals.
“This Fund comes at a critical time as traditional foreign aid flows continue to decline in both volume and reliability, widening the development financing gap,” Ggoobi said.
He added that changes in the global financial architecture require multilateral development finance institutions such as IsDB to become more inclusive, adaptive and responsive to the evolving needs of member countries.
“The changing global environment calls for reforms that enable development finance institutions to better support sustainable growth and development across member states,” he said.
https://thecooperator.news/afdb-commits-shs-2-4trn-to-ugandas-sgr-project/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.new
