The Islamic Development Bank (IsDB) Executive Board has approved financing worth EUR 650.75 million for Uganda's Standard Gauge Railway (SGR) project, marking the largest amount ever approved by the Board for a single project in the country.

The approval was made on the sidelines of the 51st Islamic Development Bank Group Board of Governors' Annual Meetings held in Baku, Azerbaijan, from June 16 to 19, 2026, under the theme "Regional Integration for Sustainable Prosperity."

Uganda's delegation was led by the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, who served as the Temporary Governor. Dr. Ggoobi reaffirmed the Government of Uganda's commitment to achieving financial closure for the Standard Gauge Railway project by November 2026.

According to details released during the meetings, the IsDB financing will support the construction of key railway infrastructure, including the 553-metre Jinja Nile Bridge and the 2.12-kilometre Mbuya–Kampala Tunnel.

The funding will also facilitate the construction of six railway stations located in Tororo, Iganga, Jinja, Lugazi, Kampala East and Kampala City, as well as three workshops in Kampala East, Jinja and Tororo.

As of the end of May 2026, Uganda and the Islamic Development Bank had eight signed public operations, including loans and grants, valued at USD 896.55 million. These operations are largely dominated by the Integrated Transport Infrastructure Services Programme, with projects worth USD 721 million.

Other projects financed by the IsDB in Uganda include Technical and Vocational Education and Training (TVET), the upgrading of the Muyembe–Nakapiripirit Road, the Rwenkunye–Apac–Lira–Acholibur Road Project, and irrigation schemes in Unyama, Namalu and Sippi.

The Bank is also supporting the upgrading of national roads, including the Katine–Ochero Road and associated town access roads in Kaberamaido and Kalaki, construction of the Masindi Port Bridge, road upgrades in Kyenjojo District, the Kumi–Ngora–Serere–Kagwara Road project, and the establishment of regional oncology centres in Arua and Mbale.

During the Governors' Round Table, Dr. Ggoobi welcomed the launch of the IsDB Concessional Fund (ICF) in 2026, which aims to increase the Bank's concessional financing to approximately 15 percent of annual approvals.

He noted that the fund comes at a time when traditional foreign aid flows are declining in both volume and reliability, widening the development financing gap for many countries.

Dr. Ggoobi further called on multilateral development finance institutions to become more inclusive, adaptive and responsive to the needs of member countries amid changes in the global financial architecture.