Tanzania’s 567 KMs SGR Connecting DR Congo To Beat Kenya’s

The Tanzanian government, on February 23, 2024, signed a financing agreement with the African Development Bank (AfDB) worth TSh.231.3 billion ($91.76 million).

The purpose of this agreement is to kickstart the construction of a modern railway connecting Tanzania with neighboring countries, Burundi and the Democratic Republic of Congo (DRC).

This railway project is part of the Standard Gauge Railway (SGR) network, which extends from the port of Dar es Salaam to link Tanzania with its neighbors via the central transportation corridor.

The concessional loan will fund the construction of sections six and seven of the modern railway, spanning from Tabora to Kigoma and from Uvinza to Malagarasi.

Tanzania’s 567 KM SGR To DR Congo vs Kenya’s

The 567-kilometer modern railway line will be built over the next seven years (from 2024 to 2031).

The SGR journey from Nairobi to Mombasa covers a distance of approximately 472 kilometers and cost Kenyan taxpayers $3.6 billion.

The SGR was among Kenya’s most expensive infrastructure projects as at the time it was launched in 2014.

Tanzania is building its 567 KM to DR Congo line at the tune of just $91.7 million

Dr. Mwigulu Nchemba, the Minister for Finance, said the project aims to establish a modern railway connecting Tanzania to Burundi (from Malagarasi to Musongati) and eventually to the DRC.

Also Read: Tanzania signs Ksh146 billion loan for SGR construction

“This initiative is part of the larger Multinational Tanzania/Burundi/DR Congo joint standard gauge railway project,” said Nchemba.

During the signing ceremony, Dr. Nchemba said the deal would bring to light Tanzania’s substantial nickel deposits (approximately 250 million tonnes).

Transportation challenges to the port of Dar es Salaam have been some of the challenges to realise the nickel opportunities.

This project aims to boost commercial relations between Tanzania, Burundi, and the DRC.

AfDB Funding for Agriculture

In addition to the railway financing, AfDB also extended $66 million to the Tanzania Agricultural Development Bank (TADB) to enhance its capital for agricultural financing.

“We expect TADB to increase access to loans for youth groups through the ‘Building a Better Tomorrow (BBT)’ programme which was implemented by the government,” said Dr Nchemba.

The Minister for Transport, Prof Makame Mbarawa applauded the AfDB for extending its concessional loan to develop infrastructure.

“This is a historical moment for us to receive funds from the AfDB because it usually offers loans for agriculture, water and other related sectors. The funds we have just received will play a vital role in connecting Tanzania with the neighbouring countries,” he said.