(Dar es Salaam) – The Tanzania Railways Corporation (TRC) has secured funding for the construction of a modern Standard Gauge Railway (SGR) from Uvinza in Tanzania to Musongati in Burundi. This project is set to enhance transport links and create new opportunities for jobs and business, boosting the economies of both countries.
On November 14, 2024, during a visit by the Parliamentary Investment Committee (PIC) to review the progress of the SGR project, Acting Director General of TRC, Mateshi Tito, confirmed that the funding had been obtained from Standard Chartered Bank, the African Development Bank (AfDB), and China’s SINO Insurance. Tito stated that the funding would help ensure the timely completion of the project.
Once completed, the railway is expected to strengthen transportation services between Tanzania, Burundi, and the Democratic Republic of Congo (DRC). According to the Ministry of Transport, the construction of the railway is divided into two parts: the first segment is from Uvinza to Malagarasi in Tanzania, covering a distance of 156 kilometers, while the second segment runs from Malagarasi-Musongati to Gitega in Burundi, spanning 126 kilometers.
The SGR is anticipated to provide significant benefits for both Tanzania and Burundi by creating new job opportunities and stimulating trade, which will ultimately contribute to the economic growth of both nations. Currently, the SGR is operational for passenger services from Dar es Salaam to Morogoro and from Dar es Salaam to Dodoma.
Tito also spoke about the ongoing collaboration with the private sector for the SGR project, noting that there is strong interest from both local and foreign investors. He mentioned that the final steps involve completing the regulatory framework for the public-private partnership in the operation of the railway, following recent approval of the necessary legislation by Parliament.
Augustine Vuma, Chairman of the PIC, expressed satisfaction with the investment in the SGR, stating that the railway has already generated 20 billion Tanzanian shillings from passenger services. He highlighted that once the freight services begin, the revenue is expected to triple, as cargo transport generally accounts for about 80% of the income from railways, compared to 20% from passengers.
TRC has indicated that freight services on the railway will commence in early 2025, with cargo wagons expected to arrive in the country by that time. Vuma emphasized that the shift from road transport to rail will reduce wear and tear on roads, minimize breakdowns, and lower transportation costs for goods.
David Kihenzile, the Deputy Minister of Transport, highlighted the committee’s recommendation for the rapid completion of the remaining sections of the SGR to ensure that Tanzania fully benefits from both passenger and freight services. Kihenzile also noted that MPs had received plans for future expansions, including the 2,300 kilometers of railway being constructed from Dar es Salaam to Mwanza.
In addition to the SGR project, the government is also investing in port improvements at Dar es Salaam, Mtwara, and along the lakes to facilitate smoother cargo movement across borders. Over 2 trillion Tanzanian shillings have been allocated to enhance maritime infrastructure, with plans to build new vessels for Lake Tanganyika and Lake Victoria. The government has approved funds for the construction of a 3,500-ton cargo ship for Lake Tanganyika, as well as a significant overhaul of the fleet operating on both lakes.