Standard Chartered Eyes Financing for Uganda’s Standard Gauge Railway Project

Standard Chartered Bank has expressed interest in financing Uganda's ambitious Standard Gauge Railway (SGR) project, according to a statement from President Yoweri Museveni's office. This development comes after the project failed to secure funding from China.

Sanjay Rughani, CEO of Standard Chartered Bank's Ugandan unit, informed President Museveni of the bank's interest during a meeting on Thursday. The delegation also included Faruq Muhammad, the bank's Global Head of Structured Export Finance.

"We have submitted our interest to finance many other projects such as the SGR," Rughani stated, according to the president’s office.

The proposed 273-kilometer (170-mile) railway aims to significantly reduce shipping costs for landlocked Uganda by linking it to Kenya's SGR, which extends to the Indian Ocean seaport of Mombasa.

In 2015, Uganda had an agreement with China Harbour and Engineering Company Ltd (CHEC) to implement the SGR project, contingent on securing Chinese government funding. After years of unsuccessful negotiations, Uganda terminated the agreement last year and is now in discussions with Turkey's Yapi Merkezi to carry out the project.

This renewed interest from Standard Chartered Bank could mark a significant step forward for Uganda's SGR, potentially enhancing the country's trade efficiency and economic growth.