In a major push for regional trade and development, the African Development Bank (AfDB) has approved over $696 million in financing for a critical rail project connecting Tanzania, Burundi, and the Democratic Republic of Congo (DRC). This marks a significant step forward in the ambitious initiative aimed at bolstering East and Central African connectivity.
The project, dubbed the Joint Tanzania-Burundi-DRC Standard Gauge Railway (SGR), will see the construction of 651 kilometers (405 miles) of new railway lines in the second phase. This extension will connect to the existing Tanzanian rail network, providing landlocked Burundi and the eastern DRC with direct access to the vital port of Dar es Salaam on the Indian Ocean.
Tanzanian President Samia Suluhu Hassan has prioritized completing this infrastructure megaproject, originally launched under her predecessor John Magufuli. The improved rail link is expected to significantly boost trade and economic activity across the region.
The AfDB’s contribution includes a $99 million grant for Burundi and a $598 million package of loans and guarantees for Tanzania. This financial support will be crucial for the construction of the second phase, which will run from Tabora in central Tanzania to the Burundian border.
The first phase of the project has already seen the completion of 400 kilometers of track between Dar es Salaam and Dodoma, the Tanzanian administrative capital. Construction is also underway on a section connecting Dodoma to Tabora.
Beyond its direct financial contribution, the AfDB will play a key role in structuring and securing additional funding for the project. The bank aims to attract up to $3.2 billion from commercial banks, development finance institutions, and institutional investors, bringing the total estimated cost for the Tanzania-Burundi section to over $3.9 billion.
The completion of this ambitious rail project holds immense promise for the region. Improved connectivity is expected to facilitate trade, boost economic growth, and create new jobs. By bridging geographical barriers and fostering closer economic ties, the East African rail link has the potential to unlock a new era of prosperity for Tanzania, Burundi, and beyond.