Uganda and the Islamic Development Bank Sign $800 Million Financing Agreement to Promote Infrastructure and Trade

Uganda and the Islamic Development Bank have inked an agreement worth $800 million to finance infrastructure projects related to transportation, energy, health, and railroads.

The Islamic Development Bank (IsDB) and Uganda have inked a $800 million financing deal to fund a number of development initiatives meant to improve infrastructure and trade throughout the nation. The money will go toward important areas like health, energy, and transportation, including a large railway project meant to improve regional connectivity, according to Uganda’s Ministry of Finance.

The building of a railroad line connecting Uganda to the Standard Gauge Railway in neighboring Kenya is a key element of the deal. By giving the landlocked East African country access to the port of Mombasa in the Indian Ocean, this link will make cross-border trade and logistics activities easier.

At the Islamic Development Bank’s annual conference in Algiers, the three-year financing agreement was formally finalized. Rami Ahmed, the vice president of the bank, signed on behalf of the IsDB, while Ramathan Ggoobi, Uganda’s permanent secretary and secretary to the Treasury, signed on behalf of the government.

Uganda’s commitment to strengthening regional integration, lowering trade barriers, and funding infrastructure for sustainable development is in line with this strategic cooperation.