Tanzania has secured $1.2 billion to fund the Standard Gauge Railway (SGR) project. This investment boosts trade and connects Tanzania with neighboring countries. This was reported by the railway transport news portal Railway Supply.

Standard Gauge Railway (SGR) project
Credit: Stoqliq/Shutterstock.

Funding Details for the Standard Gauge Railway (SGR)

The African Development Bank (AfDB), Deutsche Bank, and Société Générale signed an agreement to finance Tanzania’s ambitious railway expansion. The project, revealed at the 2024 African Investment Forum in Rabat, Morocco, seeks to enhance infrastructure across the region.

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Tanzania plans to construct a $2.3 billion, 411-kilometer railway linking Tabora to Kigoma. The line is part of the $10 billion International Strategic Railway Programme aimed at boosting trade across Eastern and Central Africa. International debt markets and development institutions will contribute additional funds.

The railway will link Dar es Salaam to Lake Victoria’s Mwanza port, extending to Rwanda, Uganda, and Burundi. This infrastructure promises new trade routes for agricultural and mining commodities.

Economic Benefits and Regional Impact

The Standard Gauge Railway (SGR) is set to drive economic growth and improve regional trade. New transport corridors will reduce logistics costs and foster stronger economic ties among African nations.

In May 2024, Tanzania conducted a successful test run of the SGR between Dar es Salaam and Dodoma. This milestone highlights progress toward completing a vital infrastructure project.

The initiative also focuses on sustainability and resilience. Flood control systems and refurbished tracks will strengthen the railway against climate risks. This modernization enhances safety and efficiency, aligning with Tanzania’s development goals.

Source: www.railway-technology.com

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