Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Uganda has secured approval for a EUR 650.7 million loan from the Islamic Development Bank (IsDB) to support the development of its standard gauge railway project. The railway, valued at EUR 2.7 billion, is a key infrastructure initiative aimed at improving regional connectivity and trade. The project has already attracted support from international lenders, including the World Bank and the African Development Bank. Once completed, the railway will connect Uganda to Kenya’s rail network and provide access to the Port of Mombasa, a critical gateway for the country's imports and exports.
Uganda has received approval for a EUR 650.7 million (USD 746.2 million) loan from the Islamic Development Bank (IsDB) to support the financing of its standard gauge railway project, according to the country's finance ministry.
The funding marks another step forward for the EUR 2.7 billion railway development, which is one of Uganda's largest infrastructure projects. The government has been actively seeking financing from international lenders and development institutions to support the project. Alongside IsDB, the railway has already secured backing from the World Bank and the African Development Bank. Uganda has also appointed Citibank to assist in mobilising additional funding for the project.
Construction work on the railway began in 2024 and is being undertaken by Turkish engineering and construction company Yapi Merkezi. The project is expected to play a significant role in strengthening transport infrastructure and reducing logistics costs for businesses operating in the country.
Government data shows that IsDB remains one of Uganda's largest external financing partners. As of the end of May, the lender had active projects in the East African nation valued at approximately USD 896.5 million across various sectors.
The planned 272-kilometre railway line will connect landlocked Uganda to Kenya's rail network, creating a direct link to the Indian Ocean through the Port of Mombasa. The route is expected to improve the movement of goods and enhance regional trade, as a large share of Uganda's imports currently pass through the Kenyan port.
The railway project forms part of broader efforts by East African countries to strengthen transport corridors, improve cross-border connectivity and support economic growth through modern infrastructure investments.
Source Reuters
Advertisement
Facebook
Whatsapp
