Tanzania Rail Expansion Secures $2.33 Billion Financing for Key SGR Sections

Mintesinot Niggusie

Tanzania’s broader plan to develop at least 2,561 kilometres of modern railway infrastructure, designed to connect with Rwanda, Burundi, Uganda and the Democratic Republic of the Congo, continues to advance as financing is mobilised for priority sections of the network.

Standard Chartered has arranged a 2.33 billion US dollar syndicated financing facility to support the expansion of the Standard Gauge Railway, providing funding for construction works along the main corridor linking Dar es Salaam and Mwanza.

The package will finance two key sections of the 1,219-kilometre line, which is intended to connect the country’s main port and commercial hub with the lakeside city, improving freight and passenger transport efficiency across the route.

Construction will be executed by Yapi Merkezi and China Civil Engineering Construction Corporation, reflecting the involvement of multiple international contractors in delivering the large-scale infrastructure project.

The financing structure brings together export credit agencies, commercial lenders and development finance institutions, highlighting the blended nature of funding behind Tanzania’s rail expansion programme.

The Standard Gauge Railway is designed to improve logistics performance by offering higher-capacity and faster transport for goods and passengers, with the aim of reducing transport costs and strengthening connectivity between coastal and inland economic centres.