The African Development Bank has approved $696 million in financing for a train project that will connect Tanzania, Burundi, and the Democratic Republic of the Congo, according to the bank. The project will connect to Tanzania’s existing rail network, giving adjacent countries access to the port of Dar es Salaam.
Tanzanian President Samia Suluhu Hassan is aiming to finish large-scale infrastructure projects started by her predecessor, John Magufuli, to improve trade with neighboring east and central African countries.
The AfDB stated in a statement that it will contribute around $99 million in grants to Burundi and $598 million in loans and guarantees to Tanzania for the 651 km (405 miles) second phase of the project.
In the first phase of the project, 400 kilometers of rail were built between Dar es Salaam and Dodoma, Tanzania’s administrative capital, and a segment connecting Dodoma to the central town of Tabora is currently under development.
The AfDB also stated that it will assist in the structuring and securing of up to $3.2 billion in funding from commercial banks, development finance institutions, and institutional investors. The entire cost of the project in Tanzania and Burundi is anticipated to be more than $3.9 billion.
Access to an efficient and cost-effective long-haul bulk transport service via the SGR will incentivize large-scale mining and commercial agriculture, as well as transform the Central Transport Corridor into an economic corridor by enhancing trade and manufacturing opportunities along the corridor influence zone and provide for a shift away from road trucking transportation, which causes accidents and high road maintenance costs.
