Uganda’s plans to modernize its transport network received a significant lift after the African Development Bank (AfDB) reaffirmed its intention to provide about $650 million for the construction of the Malaba-Kampala Standard Gauge Railway.

The proposed funding marks a key step forward for a project that has been years in the making.

Once completed, the 326-kilometer railway is expected to improve cargo movement, lower transportation costs and strengthen trade links between Uganda and its regional partners.

The railway is also seen as a critical piece of East Africa’s broader infrastructure agenda.

For a landlocked country like Uganda, faster and more efficient rail transport could help businesses move goods more easily to regional markets and ports.

AfDB backs strategic infrastructure

The funding commitment was announced during the 2026 African Development Bank Annual Meetings in Brazzaville, Republic of Congo, where AfDB Vice President for Regional Development, Integration and Business Delivery Abdul Kamara met with a Ugandan delegation led by Mustapha Achidri, the country’s temporary governor at the bank.

Kamara said the railway aligns with the lender’s goal of supporting infrastructure that promotes regional integration and economic growth.

He disclosed that the bank has tentatively allocated Units of Account worth 480 million, equivalent to about $650 million, for the project.

Financing talks move forward

According to Kamara, the final financing package is expected to be discussed during an appraisal mission scheduled for June 2026.

The funding remains subject to approval under the African Development Fund’s 17th replenishment cycle.

“The railway remains a priority project for Uganda and the region,” Achidri said, welcoming the bank’s support.

He noted that the Ugandan government is mobilizing €2.7 billion to help finance construction under its Tenfold Growth Strategy.

Support extends beyond rail

In addition to the railway project, the AfDB pledged $1 million in emergency assistance to support Uganda’s efforts to contain the Ebola outbreak.

Achidri also thanked the bank for its continued support of Uganda’s development programs, pointing to recently approved financing of €7.33 million($8.55 million) for the Uganda Rural Electrification Project I and €101.23 million($118 million) for the Uganda Rural Electrification Access Project Phase II.

Senior AfDB and Ugandan government officials attended the meeting, underscoring the importance both sides place on the partnership.