Uganda's Railways Leap Forward with AfDB's $650 Million Boost

The African Development Bank plans to partially finance Uganda's Standard Gauge Railway with a commitment of $650 million. Awarded to Turkey's Yapi Merkezi, the project aims to enhance Uganda's trade efficiency by improving its main export-import route through Kenya. Uganda is also considering a sovereign sukuk bond for additional funding.

The African Development Bank (AfDB) has committed to partially financing Uganda's ambitious Standard Gauge Railway (SGR) project with an allocation of $650 million, according to Uganda's finance ministry. This international deal, awarded to Turkey's Yapi Merkezi in 2024, seeks to improve trade efficiency by enhancing Uganda's primary land trade route through Kenya.

Abdul Kamara, AfDB’s Acting Vice President for Regional Development, conveyed this decision during the bank's annual meetings in Brazzaville. The final appraisal mission is expected next month to conclude the funding arrangements, further solidifying AfDB's support for Uganda's infrastructural strides.

As a landlocked country, Uganda primarily relies on its route through Kenya for exports and imports. With the completion of the 326 km SGR line, Uganda anticipates decreased costs and expedited shipment times. In tandem with the AfDB commitment, Uganda is advancing toward issuing its inaugural sovereign sukuk bond to further finance the railway project.