# African Development Bank earmarks $650 million for Uganda rail project

**Published:** 2026-05-31T08:09:18.000Z  
**Topic:** Banking  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/1b66d01e-af81-425b-8a07-d3e27e4017ab

Uganda’s finance ministry says the AfDB has set aside $650 million for a 326‑km standard gauge railway, part of a $3.15 billion plan to cut shipping costs.

The African Development Bank (AfDB) has tentatively allocated $650 million to finance Uganda’s 326‑kilometre standard gauge railway (SGR) project, according to the Ugandan finance ministry [1]. The funding was announced by AfDB acting vice‑president Abdul Kamara during the bank’s annual meetings in Brazzaville, with final financing arrangements to be reviewed next month [1].

**Key takeaways**
- The AfDB’s provisional commitment is $650 million for Uganda’s SGR project [1].
- The railway spans 326 km and is estimated to cost $3.15 billion in total [1].
- Turkey’s Yapi Merkezi won the construction contract in 2024 [1].
- The line aims to lower shipping costs and speed cargo movement for landlocked Uganda, which currently relies on Kenyan transit routes [1].
- Final financing details will be clarified during a review mission scheduled for the following month [1].

## Funding announcement at AfDB annual meetings  
During the AfDB’s annual meetings in Brazzaville, acting vice‑president Abdul Kamara conveyed the bank’s tentative $650 million pledge for Uganda’s SGR project [1]. The announcement came as part of broader discussions on Africa’s infrastructure financing, a theme highlighted at the 2026 Annual Meetings of the AfDB Group. While the exact terms of the financing remain to be finalized, the ministry expects a review mission next month to confirm the arrangement [1].

## Project scope and expected impact  
The railway, awarded to Turkish contractor Yapi Merkezi in 2024, will stretch 326 km across Uganda [1]. With an overall cost estimate of $3.15 billion, the project is positioned to reduce freight costs and accelerate cargo transit for Uganda, which currently depends on overland routes through Kenya [1]. By improving transport efficiency, the line is intended to bolster Uganda’s trade competitiveness and support its status as a landlocked economy.

## Why it matters  
The AfDB’s provisional funding signals a significant step toward closing Uganda’s infrastructure financing gap, a key obstacle for many African economies. If the financing is secured, the railway could transform regional logistics, lower import‑export expenses, and attract further private investment into Uganda’s transport sector. The upcoming review mission will determine the final structure of the AfDB’s support, shaping the timeline and scale of the project’s implementation.

## Sources
1. En — [AfDB Pledges Financial Funding for Uganda’s Standard Gauge...](https://en.sputniknews.africa/20260531/1086242825.html)
2. Afdb — [AM 2026: African leaders pitch energy and green projects at AfDB...](https://www.afdb.org/en/news-and-events/press-releases/am-2026-african-leaders-pitch-energy-and-green-projects-afdb-presidential-dialogue-93654)
3. Businessfront — [African Development Bank approves €7.33 million... - Businessfront](https://businessfront.com/african-development-bank-7-33-million-ugandas/)

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Cite as: TrendWatcher, "African Development Bank earmarks $650 million for Uganda rail project", https://www.trendwatcher.in/article/1b66d01e-af81-425b-8a07-d3e27e4017ab