Uganda has renewed its push to construct the long-awaited Standard Gauge Railway (SGR), appointing Citibank to mobilise billions of dollars in financing after years of stalled progress driven by funding challenges.
The breakthrough was announced during the 2026 IMF and World Bank Spring Meetings in Washington, where Ugandan officials confirmed that Citibank will act as the lead arranger to coordinate funding for the strategic infrastructure project. The development signals a major shift in financing strategy for a railway that has faced nearly a decade of uncertainty.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said government had already secured a contractor for the 270-kilometre Malaba–Kampala section and was now focusing on unlocking financing.
“We have already contracted the construction of the 270km SGR line from Malaba to Kampala and also contracted Citibank to be the lead arranger and coordinator of the required financing,” he said.
The railway, estimated to cost between $2.2 billion and $2.7 billion for the eastern section alone, is part of a wider regional network that could exceed $6 billion when extended to western Uganda, Rwanda and the Democratic Republic of Congo.
Uganda’s latest move reflects a broader pivot away from reliance on a single lender—particularly after earlier attempts to secure funding from China’s Exim Bank failed to materialise. The financing setback forced government to suspend procurement processes and rethink its approach to funding the project.
Instead, Kampala is now pursuing a structured, multi-lender model, with Citibank expected to bring together a consortium of international financiers. Officials also confirmed ongoing discussions with the World Bank, which is considering “an array of potential financing options” to support the railway.
The SGR is a cornerstone of East Africa’s regional integration agenda, designed to link landlocked Uganda to Kenya’s rail network and ultimately the Indian Ocean port of Mombasa. Once complete, the line is expected to significantly reduce cargo transport costs, ease pressure on road infrastructure, and enhance trade competitiveness across the region.
Minister of State for Finance Henry Musasizi emphasised the regional stakes, noting that the railway’s viability depends on coordinated investment across partner states.
“The viability of this SGR depends on all of us committing to do the project,” he said, pointing to plans to extend the railway beyond Uganda’s borders into Rwanda and DR Congo.
The project has already seen some progress on the ground, with preliminary works funded by government, but full-scale construction has remained on hold pending financial closure.
Originally conceived as part of a broader East African rail masterplan, Uganda’s SGR has faced repeated delays linked to financing gaps, feasibility concerns, and shifting contractor arrangements. The government replaced its initial Chinese contractor after years of inactivity, handing the project to a Turkish firm as part of efforts to restart implementation.
With Citibank now at the centre of the financing effort, Uganda is betting on renewed investor confidence to finally move the SGR from ambition to reality.
If successful, the railway could mark one of the country’s most transformative infrastructure investments—reshaping trade routes, lowering logistics costs, and accelerating economic integration across East Africa.
