AfDB Agrees To Lend Uganda UGX2.4 Trillion For Malaba-Kampala SGR Construction

The Ministry of Finance has revealed that the African Development Bank has agreed to lend Uganda, US$650Million (UGX2.452Trn) out of the required Euro2.7Bn (UGX11.864Trn), to finance the 326km Standard Guage Railway project.

This followed a commitment given by Dr. Abdul Kamara, Vice President of the African Development Bank, who reaffirmed African Development Bank’s commitment to finance the construction of the 326km standard gauge railway (SGR) section in Uganda from Malaba to Kampala, while meeting Uganda’s delegation led by the Temporary Governor, Mustapha Achidri- Assistant Commissioner at the Finance Ministry on the sidelines of the African Development Bank Annual meetings, 2026 in Brazzaville, Republic of Congo.

“The African Development Bank Group Vice President said the SGR project is well aligned with the Bank’s cardinal priority of building resilient infrastructure on the African Continent. The Bank has already tentatively allocated US$650Million), however the final project financing arrangements will be concluded during the next appraisal mission next month in June 2026, based on the approval of African Development Fund 17. Dr. Kamara also pledged the support of AfDB to the tune of US$1 million to Uganda as emergency response to the fight against Ebola,” wrote Ministry of Finance on their official X handle.

In his remarks, Achidri welcomed the commitment of the AfDB to fund the SGR, adding that Uganda is currently mobilising Euro2.7Bn (UGX11.864Trn to finance the construction of the SGR, a key enabler under the Tenfold Growth Strategy. He also thanked the Bank for the continuous support to Uganda. He made specific reference to the recently approved projects by the Bank’s Board including: Additional financing for the Uganda Rural Electrification Project 1 worth EUR 7.33 million and Uganda Rural Electrification Access Project Phase II worth EUR 101.23 million.

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