Tanzania has secured funding for a section of its standard gauge railway (SGR) linking to Burundi, with financing from Standard Chartered, Sinosure, and the AfDB. The TRC is managing the construction of the 2,561-kilometre line aimed at enhancing regional connectivity. Current operational sections and ongoing construction are well progressed, with over $10 billion invested.
The government of Tanzania has announced securing funding for the construction of a standard gauge railway (SGR) section linking Tanzania to Burundi. The Tanzania Railways Corporation (TRC) is managing the extensive railway project which will ultimately connect Dar es Salaam to Mwanza, with extensions to Burundi and other neighboring countries. Discussions with three international financial institutions have concluded successfully, enabling financial backing for the Uvinza to Musongati segment. TRC’s acting director general, Mateshi Tito, confirmed that Standard Chartered, the China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB) will finance this project. Although the exact financing amount remains undisclosed, plans to finalize contract details are underway. Presently, segments of the SGR project are progressing well, with operational lines already established between Dar es Salaam and Dodoma. The TRC has reported strong advancements with varying completion percentages across other sections, indicating robust construction momentum. The completion rate for the Isaka-Mwanza segment stands impressively at 60.62%, while ongoing dialogues with prospective investors underscore continued interest in the SGR’s development and expansion. In light of fiscal efforts, the Public Investment Committee (PIC) has highlighted that approximately $10 billion has been invested in the SGR project so far. PIC chairman Mr. Augustine Vuma Holle expressed optimism regarding the potential for a threefold increase in income once freight services commence, emphasizing the dual-use nature of the railway system which predominantly generates revenue from freight operations.
The development of the standard gauge railway (SGR) in Tanzania is a major infrastructure project aimed at enhancing regional connectivity and boosting economic growth. The SGR system is crucial for facilitating trade and transport across East Africa, linking multiple countries including Tanzania, Burundi, DR Congo, Rwanda, and Uganda from the Indian Ocean. The project represents a significant investment in modern railway technology, aiming to improve efficiency and accessibility in freight and passenger transport within the region. The engagement of multiple international financial institutions also underscores the collaborative effort required for such a grand development.
The successful securing of funding for the SGR connection to Burundi signifies a critical advancement in Tanzania’s infrastructure development initiative. With substantial investments already made and positive progress reported across various segments, the government remains committed to ensuring the project’s completion. Ultimately, the SGR is expected to substantially enhance regional trade and transport networks, promoting economic growth and improving service delivery in East Africa.
Original Source: www.thecitizen.co.tz
