Uganda says Islamic Development Bank approves €650 million loan

The Islamic Development Bank's executive board has approved a €650.7 million loan to Uganda to finance its standard gauge railway project, valued at €2.7 billion.

The Islamic ​Development Bank's (IsDB) executive ​board has ‌approved a €650.7 ​million ($746.2 million) loan to Uganda to help finance its standard ‌gauge railway project, the finance ministry said late on Friday. Uganda is raising funds for the €2.7 billion ‌project, which has already won backing from lenders ‌including the World Bank and the African Development Bank. It has appointed Citibank to help mobilise financing.

Construction of the ⁠railway, ​which ⁠began in 2024, is being carried out by Turkish firm ⁠Yapi Merkezi. The IsDB is one of Uganda's biggest ​sources of external financing and, as of the ⁠end of May, had projects in the east African ⁠country ​worth $896.5 million, government data show.

The 272-km (169-mile) line will link landlocked Uganda to Kenya's rail ⁠network, providing access to the Indian Ocean port of ⁠Mombasa, through ⁠which Uganda imports most of its goods. ($1 = 0.8720 euros)