Uganda taps Citibank to raise $3.2 billion for major railway expansion

Uganda has appointed Citibank, a major global bank, to mobilize 2.7 million Euro ($3.2 billion) in funding for its long-delayed Standard Gauge Railway (SGR), marking a renewed push to unlock one of East Africa’s most critical infrastructure corridors.

The project aims to connect the capital Kampala to Malaba on the Kenyan border, creating a seamless rail link to the port of Mombasa and accelerating regional trade for the landlocked economy.

Global lenders circle strategic corridor

Uganda’s finance ministry confirmed it is also in discussions with the World Bank, which is weighing multiple financing options.

The Washington-based lender recently signaled openness to supporting the railway, reflecting growing international interest in Africa’s transport infrastructure.

A Ugandan delegation, attending the IMF and World Bank Spring Meetings in Washington, held talks with Citibank officials led by Richard Hodder, the bank’s global head of export and agency finance, to advance funding negotiations.

Funding key to unlock construction

While preliminary works have begun using limited government funding, full-scale construction remains contingent on securing external financing. The 272-kilometer rail line is seen as vital to reducing logistics costs, easing cargo movement, and strengthening Uganda’s competitiveness in regional markets.

The SGR is expected to integrate with Kenya’s existing railway network, forming a key segment of the Northern Corridor, East Africa’s primary trade route.

Shift from China to new partners

Uganda’s latest move follows years of stalled negotiations with Chinese lenders that failed to deliver a viable funding framework. In 2024, the government pivoted, awarding the construction contract to Yapi Merkezi, highlighting a broader diversification strategy.

Across Africa, governments are increasingly turning to blended financing models that combine multilateral funding, Western banks, and private capital to deliver large-scale infrastructure.

High-stakes bet on trade and logistics growth

If completed, the railway could transform Uganda’s export capacity, particularly for commodities and manufactured goods, while cutting transit times to global markets. 

For Citibank, the mandate underscores its expanding role in structuring large-scale African infrastructure deals, as global financiers position for opportunities tied to the continent’s trade and logistics boom.