Uganda has clinched a game-changing $800 million infrastructure financing deal with the Islamic Development Bank (IsDB), marking a significant stride toward transforming the country’s regional connectivity and economic potential.

Signed during the IsDB’s annual meeting in Algiers, the agreement promises to unlock development across key sectors including transport, energy, and health. Central to the plan is the construction of a new standard gauge railway (SGR), designed to link Uganda with Kenya’s SGR and the strategic port of Mombasa on the Indian Ocean, providing a vital trade artery for the landlocked East African nation.

“This partnership will accelerate Uganda’s development agenda and regional integration,” said Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, who signed the agreement on behalf of Uganda’s Ministry of Finance. He was joined by Rami Ahmed, Vice President of the Islamic Development Bank.

Spanning three years, the financing deal signals Uganda’s commitment to infrastructure-led growth. Beyond the railway, the funds will support upgrades in transport networks, expansion of healthcare facilities, and investment in reliable energy systems all crucial pillars for national development.

The government views this initiative as a catalyst for boosting exports, reducing transport costs, and attracting regional trade, positioning Uganda as a central hub in the East African economic corridor.