US-backed financiers emerge as preferred partners in Uganda’s $3.19bn railway shift
Credit: africa.businessinsider.com
Black News 
Uganda is increasingly turning to U.S.-linked financial institutions to fund its $3.19 billion Standard Gauge Railway project, marking a significant shift after years of unsuccessful attempts to secure Chinese financing. The government confirmed in April 2026 that it has appointed Citigroup to mobilise funding for the project, signalling a pivot toward Western-backed capital as reported by Reuters.
The railway, which will run about 272 kilometres from Kampala to the Kenyan border at Malaba, is a critical infrastructure project aimed at linking Uganda to Kenya’s rail network and the port of Mombasa. Initial plans relied heavily on Chinese financing under the Belt and Road Initiative, but prolonged delays and failed negotiations led Kampala to abandon that route and restructure the project’s funding model.
Ugandan officials are now engaging a mix of international partners, including Citigroup and the World Bank, to close the financing gap and move the project into full construction. A delegation recently held discussions in Washington during the IMF and World Bank Spring Meetings to accelerate funding mobilisation, reflecting a broader strategy to diversify funding sources and reduce dependence on a single partner.
The shift underscores a wider trend across Africa, where governments are increasingly turning to Western and multilateral institutions as Chinese infrastructure lending slows. For Uganda, securing U.S.-aligned financing could unlock long-delayed construction while reshaping the geopolitical balance of infrastructure funding on the continent.
