Tanzania and Burundi have inked a US $2.2bn deal to develop a standard gauge railway line. This project aims to facilitate efficient nickel exports an
Tanzania and Burundi have inked a US $2.2bn deal to develop a standard gauge railway line. This project aims to facilitate efficient nickel exports and enhance cross-border trade between the two nations. Makame Mbarawa, Tanzania’s transport minister, said the deal was the result of a bilateral agreement between the governments of Tanzania and Burundi.
Cross-border trade
The project will involve construction of a 282-kilometer standard gauge railway (SGR) connecting the town of Uvinza in Tanzania to Musongati in Burundi. The railway will link the port of Dar es Salaam to the nickel-rich Musongati region, which also contains deposits of gold, platinum, palladium, copper, and iron. Upon completion, the line is expected to transport 3 million metric tonnes of ore annually. The African Development Bank will finance the project through a concessional loan.
This development is part of Tanzania’s broader strategy to expand its SGR network, which includes a 2,561-kilometer line intended to connect Dar es Salaam to Mwanza on Lake Victoria, with future extensions to Burundi, the Democratic Republic of Congo (DRC), Rwanda, and Uganda. The Tanzanian government has invested approximately $10.04 billion in the SGR project to date.
The SGR project is expected to reduce cargo transportation costs between Dar es Salaam and the DRC from a minimum of $6,000 per tonne to about $4,000 and decrease transportation time from 30 days by truck to 30 hours by rail. This infrastructure development positions Tanzania to leverage its strategic geographical location to facilitate cross-border trade and strengthen its role as a key player in regional logistics.