Tanzania is set to receive a sum of US $1.2bn for Standard Gauge Railway (SGR) project. The funds is set to be secured from a coordination agreement i
Tanzania is set to receive a sum of US $1.2bn for Standard Gauge Railway (SGR) project. The funds is set to be secured from a coordination agreement inked between The African Development Bank (AfDB), in collaboration with Deutsche Bank and Société Générale.
This agreement was formalized during the African Investment Forum’s 2024 Market Days in Rabat, Morocco. The coordination letter was signed by Max Ndiaye of the AfDB; Myriam Ouazzani, managing director for Africa at Deutsche Bank: and Randolph Fotso, head of development and structured export finance at Société Générale.
Boost in infrastructure
The funds will support the construction of a 411-kilometre railway line connecting Tabora and Kigoma in western Tanzania, forming a part of the larger $2.3 billion SGR initiative. The development aims to enhance Tanzania’s infrastructure by linking the Port of Dar es Salaam on the Indian Ocean with the Port of Mwanza on Lake Victoria. It will establish a critical transport corridor connecting Tanzania to Rwanda, Burundi, Democratic Republic of Congo (DRC), and Uganda, fostering regional trade and economic cooperation.
The funds will be executed in two tranches. The first tranche will involve Deutsche Bank and Société Générale, while the second tranche will be coordinated by the AfDB, with contributions expected from development finance institutions, export credit agencies, bilateral lenders, and multilateral development banks.
This initiative showcases Tanzania’s commitment to modernizing its transport infrastructure to boost economic growth and secure a stronger position in regional and global trade networks. The railway line is expected to streamline cargo movement, enhance connectivity, and reduce transport costs for landlocked neighbors.