KAMPALA, Uganda — Uganda has signed an $800 million financing agreement with the Islamic Development Bank (IsDB) to fund a series of infrastructure projects aimed at enhancing trade and connectivity in the landlocked East African nation.
The three-year agreement, formalized during the IsDB’s annual meeting in Algiers, encompasses investments in railway development, health, transport, and energy sectors.
A significant portion of the funding is earmarked for the development of a railway line intended to connect Uganda to Kenya’s Standard Gauge Railway, facilitating access to the Indian Ocean port of Mombasa.
The railway project aligns with Uganda’s broader infrastructure development goals, which include the rehabilitation of existing railway lines and the construction of new ones to improve domestic and regional connectivity.
The African Development Bank has also committed $301 million to refurbish Uganda’s meter-gauge railway, further supporting the country’s transportation infrastructure.
In addition to the railway initiative, the IsDB financing will support projects in the health sector, aiming to improve healthcare delivery and access. Investments in the transport sector will focus on upgrading road networks, including the construction of bridges and the maintenance of critical roadways, to facilitate smoother and more efficient movement within the country.
The energy sector will also benefit from the funding, with projects designed to enhance energy production and distribution, thereby supporting industrial growth and improving access to electricity for communities across Uganda.
The agreement was signed by Ramathan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, and Rami Ahmed, Vice President of the IsDB. This partnership underscores Uganda’s commitment to diversifying its sources of external financing and strengthening its economic infrastructure.
The IsDB, headquartered in Jeddah, Saudi Arabia, has been a key development partner for Uganda, contributing to various sectors including agriculture, education, and health.
This latest financing deal is expected to play a pivotal role in accelerating Uganda’s socio-economic development and regional integration efforts.
