Representatives from the OPEC Fund for International Development are currently in Uganda reviewing a €150 million loan proposal for the nation’s Standard Gauge Railway, according to Nile Post. The Vienna-based institution aims to secure Board approval by November 30, 2026, a milestone that would mark its largest investment in the country since 1976. The appraisal team is scheduled to consult with relevant ministries and inspect the Malaba-Kampala route later this week.
Kemi Afun-Ogidan, the fund’s Senior Country Manager, explained that the review covers design specifications, implementation logistics, and environmental safeguards. Speaking at a project headquarters meeting on October 19, she noted the urgency of the timeline, stating, “We are targeting Board approval by November 30, 2026.”
This new funding complements the €650 million secured from the Islamic Development Bank in June 2026 for the €2.7 billion infrastructure initiative. The railway is designed to enhance cargo movement between Uganda and the Kenyan port of Mombasa. The overall cost-sharing model allocates roughly 60% of expenses to export credit agencies, 25% to development institutions, and 15% to the Ugandan state, which plans to raise its share via a €405 million Sukuk bond.
Project Coordinator Can. Eng. Perez Wamburu highlighted that the line aims to halve freight costs from US$0.14 to US$0.07 per tonne-kilometre and reduce transit times from 8.5 days to one day. These changes are intended to lower production expenses and boost the competitiveness of local businesses, while also supporting industrial growth and agricultural exports.
Construction preparations are advancing, with land acquisition completed for nearly 70% of the corridor traversing 12 districts and two cities. Contractor Yapi Merkezi has finished preliminary works, including a sleeper factory and concrete plant, under a €75 million government-financed arrangement. The construction contract was signed in October 2024, and the project was officially launched in November 2024.
The implementation phase is planned to last 48 months. Nile Post reports that construction commencement is targeted for January 2027, making the current OPEC Fund review a critical step in finalizing the financing needed to begin full-scale building.