AfDB plans $650m backing for Uganda railway
May 31, 2026 at 09:08 UTC
Key Points
- African Development Bank tentatively allocates about $650 million for Uganda rail project
- Funding targets Kampala–Malaba railway link on Uganda–Kenya border
- Pledge was announced at AfDB annual meeting in Brazzaville
- Final financing terms to be set after mission appraisal next month
AfDB outlines tentative funding for Uganda railway
The African Development Bank has tentatively allocated about $650 million to support construction of a railway linking Kampala, Uganda’s capital, to Malaba on the Kenyan border. Uganda’s Finance Ministry disclosed the planned support in a statement posted on X, describing the amount as partial funding for the project.
The proposed allocation is aimed at the Kampala–Malaba rail link, a key cross-border connection between Uganda and Kenya. The funding is not yet final and is described by Ugandan authorities as tentative and conditional.
Announcement at AfDB annual meeting
According to the Finance Ministry, the pledge was announced by Abdul Kamara, the African Development Bank’s vice president in charge of regional development, integration and business delivery. Kamara made the announcement during a meeting with a Ugandan delegation held on the sidelines of the bank’s annual meeting in Brazzaville, Republic of Congo.
The ministry’s communication on X highlighted that this engagement took place within the framework of the lender’s annual gathering, where regional governments and the bank’s leadership discuss development priorities and financing plans.
Conditions and next steps for project financing
Uganda’s Finance Ministry emphasized that the about $650 million allocation remains subject to further appraisal and agreement. The statement framed the AfDB contribution as conditional on the outcomes of a mission appraisal scheduled for next month.
During this appraisal mission, the final project financing arrangement is expected to be concluded, according to the ministry. The process is intended to define the detailed terms under which the African Development Bank would participate in funding the Kampala–Malaba railway.
Until the appraisal is completed and formal agreements are signed, the funding remains a tentative commitment. The Finance Ministry’s description underscores that the allocation represents a planned contribution rather than a finalized loan or grant at this stage.
Significance of the Kampala–Malaba rail link
The Kampala–Malaba railway is presented by Uganda’s Finance Ministry as a major infrastructure project connecting the capital city to the Kenyan border town of Malaba. The line is part of a broader regional transport corridor between Uganda and Kenya.
By indicating that the African Development Bank’s planned contribution is partial, the ministry suggests that additional financing sources will be required to complete the full project cost. Specific figures for the total project budget or other financiers were not provided in the statement.
Key Takeaways
- AfDB’s about $650 million pledge is a significant but still conditional commitment pending appraisal and final agreement.
- The Kampala–Malaba rail line is framed as a strategic cross-border link, with AfDB support expected to cover only part of total costs.
- Next month’s appraisal mission is the key milestone that will determine the structure and certainty of the bank’s participation in the project.
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