Uganda has entered into an $800 million financing agreement with the Islamic Development Bank (IsDB) to support critical infrastructure projects aimed at enhancing the country’s economic connectivity and trade capacity, the Ministry of Finance announced on Wednesday.
At the heart of the agreement is the construction of a railway line that will integrate Uganda’s transport network with Kenya’s Standard Gauge Railway (SGR), enabling seamless access to the Indian Ocean through the strategic port of Mombasa. This development is poised to strengthen Uganda’s position as a key player in East African trade, addressing the challenges posed by its landlocked status.
The three-year funding arrangement will extend beyond transport, covering investments in health, energy, and broader infrastructure sectors, underpinning Uganda’s ambitious development agenda.
The signing ceremony took place during the Islamic Development Bank’s annual meeting in Algiers, Algeria. The agreement was formalized by Ramathan Ggoobi, Uganda’s top finance ministry technocrat, alongside IsDB Vice President Rami Ahmed. The IsDB, headquartered in Saudi Arabia, is a major multilateral development finance institution dedicated to advancing economic development in member states.
This collaboration signals a significant step forward for Uganda’s efforts to deepen regional integration and improve vital infrastructure, supporting long-term sustainable growth.
The Ministry of Finance shared the announcement via its official X (formerly Twitter) account late Wednesday.