IsDB commits Euro 650m to Uganda's SGR

The signature approval by the Bank’s Board meeting in Azerbaijan’s capital of Baku unlocks the path towards commencement of actual construction of key railway assets infrastructure including railway stations and bridges in the next few months. The decision also signifies the attractiveness of the SGR as a hot investment project. Government of Uganda has been in continuous engagement with partners who are co-funding the Project alongside Govt including African Development Bank, IsDB, World Bank among others.

Uganda is also set to issue a Sovereign Sukuk bond to raise about Euro 405m which will constitute 15% of Uganda’s counterpart funding. Discussions with several Export Credit Agencies are also ongoing. Meanwhile, the first consignment of equipment for the sleeper factory in Iganga District was received. Construction of the sleeper factory is part of the early works activities under the Limited Notice to Proceed (LNTP). Other activities under LNPT include setting up workers camp which is almost complete as well as a batching plant for making concrete on an industrial scale.

All these facilities will be at the Iganga camp site along the Malaba - Kampala Eastern Route. Site investigations have been concluded. In November 2025, land acquisition entered the final three districts of Mukono, Wakiso and Kampala and compensation is currently ongoing. Environmental and social audits are ongoing along the corridor to ensure all funding and pre-funding obligations are met.