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Uganda's Permanent Secretary and Secretary to the Treasury (PS/ST) Dr Ramathan Ggoobi and Dr. Muhammad Al Jasser, the President of the Islamic Development Bank (IsDB) and Chairman of the IsDB Group. PHOTO/ MINISTRY OF FINANCE HANDOUT
Uganda has received a major boost in its long-delayed Standard Gauge Railway (SGR) project after the Islamic Development Bank (IsDB) approved financing worth €650.75 million (about Shs2.6 trillion), the largest single-project funding package the bank has ever extended to the country. The approval was granted during the 51st IsDB Group Board of Governors' Annual Meetings held in Baku, Azerbaijan.
The financing will support the construction of critical infrastructure along the Malaba-Kampala SGR corridor, including the 553-metre Jinja Nile Railway Bridge, the 2.12-kilometre Mbuya-Kampala tunnel, six railway stations in Tororo, Iganga, Jinja, Lugazi, Kampala East and Kampala City, as well as three railway workshops in Kampala East, Jinja and Tororo.
Speaking during the meetings, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said government remains committed to securing full financial closure for the railway project by November 2026, describing the approval as a significant milestone in Uganda's transport modernization agenda.
The SGR is expected to improve cargo movement, lower transportation costs, enhance regional trade and strengthen Uganda's connection to Kenya's railway network and the Port of Mombasa. The project forms part of the government's broader strategy to transform infrastructure and accelerate economic growth.
The latest approval adds to the growing partnership between Uganda and the Islamic Development Bank. As of May 2026, the two sides had eight active public sector operations worth $896.55 million, covering transport infrastructure, roads, irrigation, health facilities and skills development projects across the country.
Source: Daily Monitor UG
Uganda has received a major boost in its long-delayed Standard Gauge Railway (SGR) project after the Islamic Development Bank (IsDB) approved financing worth €650.75 million (about Shs2.6 trillion), the largest single-project funding package the bank has ever extended to the country. The approval was granted during the 51st IsDB Group Board of Governors' Annual Meetings held in Baku, Azerbaijan.
The financing will support the construction of critical infrastructure along the Malaba-Kampala SGR corridor, including the 553-metre Jinja Nile Railway Bridge, the 2.12-kilometre Mbuya-Kampala tunnel, six railway stations in Tororo, Iganga, Jinja, Lugazi, Kampala East and Kampala City, as well as three railway workshops in Kampala East, Jinja and Tororo.
Speaking during the meetings, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said government remains committed to securing full financial closure for the railway project by November 2026, describing the approval as a significant milestone in Uganda's transport modernization agenda.
The SGR is expected to improve cargo movement, lower transportation costs, enhance regional trade and strengthen Uganda's connection to Kenya's railway network and the Port of Mombasa. The project forms part of the government's broader strategy to transform infrastructure and accelerate economic growth.
The latest approval adds to the growing partnership between Uganda and the Islamic Development Bank. As of May 2026, the two sides had eight active public sector operations worth $896.55 million, covering transport infrastructure, roads, irrigation, health facilities and skills development projects across the country.
Source: Daily Monitor UG
