Uganda is moving closer to issuing its first-ever Sovereign Sukuk as part of efforts to finance the €2.7 billion Standard Gauge Railway (SGR) project. According to the Ministry of Finance, Planning and Economic Development, the Islamic finance instrument will contribute 15 percent of the total project cost under a broader blended financing structure approved by Cabinet in January 2025.
The approved financing plan allocates 60 percent of the SGR funding to Export Credit Agencies (ECAs), while Development Finance Institutions (DFIs) are expected to provide the remaining 25 percent. The Sovereign Sukuk will bridge the remaining portion, marking a significant step in Uganda’s adoption of innovative and Shariah-compliant financing solutions for infrastructure development.
Deputy Secretary to the Treasury Patrick Ocailap is currently leading a Ugandan delegation on a regional Sukuk roadshow across East Africa, including Kenya, Tanzania, and Zanzibar. The tour is aimed at engaging potential investors, conducting market sounding, and supporting pricing discovery ahead of the planned issuance. Authorities say the official launch date for the Sukuk will be announced later.
The delegation includes Yusra Sukuk as lead arranger, Stanbic Bank Group as book runners, officials from the Bank of Uganda, members of the Standard Gauge Railway project team, legal advisor NS Kigozi, Salaam Bank Uganda Limited as receiving bank, and representatives from the Ministry of Finance’s Debt Policy and Issuance Department.
Officials say the roadshow is intended to strengthen investor confidence and encourage strong participation in Uganda’s debut sovereign Sukuk issuance. The Ministry of Finance is expected to release more details in the coming weeks regarding the structure and strategic importance of the Sukuk within the country’s long-term infrastructure financing framework.
The planned issuance is seen as a milestone in Uganda’s efforts to diversify funding sources and expand the use of Islamic finance instruments to support major national development projects.