Uganda Edges Closer to Realising Modern Railway As SGR Financing Talks Progress

By Priscilla Nakayenze

Uganda's journey toward achieving a modern railway system has reached a new milestone as government officials and technical teams engage in high-level discussions with the Islamic Development Bank (IsDB) to secure counterpart financing for the Standard Gauge Railway (SGR) project.

The Ministry of Finance, Planning, and Economic Development (MoFPED), alongside the SGR technical team under @SGRWorks, have commenced a week-long negotiation process with IsDB, which is expected to play a crucial role in mobilising resources for the railway project.

According to officials, these talks follow months of strategic engagements with various development finance institutions, including the African Development Bank (AfDB), which began in March and April 2025.

"The journey has been long and challenging, but every day we get closer to realizing a modern railway which will add to our country's efforts towards complete transformation and higher middle-income status," SGR Uganda noted in a statement.

The government has already provided preliminary financing for early works on the project, which are currently underway. Officials say securing additional funds from international partners like IsDB will accelerate construction and implementation of the railway, viewed as a key infrastructure project to enhance regional trade and economic growth.

The Standard Gauge Railway is part of Uganda's broader infrastructure development plan, aimed at modernising transport systems, improving connectivity within the East African region, and reducing the cost of doing business.

Once completed, the SGR is expected to significantly boost Uganda's competitiveness, create jobs, and contribute to the country's vision of achieving higher middle-income status.

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