Tanzania has secured more than US$2.33 billion in syndicated financing to advance construction of key sections of its Standard Gauge Railway (SGR), in a major push to modernise transport infrastructure and strengthen regional trade links, Standard Chartered said Tuesday.
The financing was arranged by Standard Chartered and will support construction of several sections of the railway being developed by Turkish and Chinese contractors. The project is expected to significantly improve freight and passenger transport across East Africa.
The railway forms part of Tanzania’s flagship infrastructure programme aimed at transforming logistics in the country and positioning it as a key transit hub for the wider region.
At the centre of the project is a 1,219-kilometre main line linking the port city of Dar es Salaam with inland regions and the city of Mwanza on Lake Victoria. Once fully completed, the broader network is expected to stretch about 2,561 kilometres, with planned extensions connecting neighbouring countries including Rwanda, Burundi and the eastern Democratic Republic of Congo.
The financing package draws on multiple sources, including export credit agency-backed loans from Sweden, Poland and Italy worth around US$1.32 billion. It also includes US$462 million in support from commercial banks and development finance institutions mobilised since 2023, alongside US$559 million in guarantees from China’s Sinosure.
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The latest deal builds on an earlier $1.46 billion facility arranged by Standard Chartered in 2020 for the project’s initial phases, underscoring continued international backing for Tanzania’s rail ambitions.
Tanzania’s government has said the SGR is central to its long-term development strategy, aimed at reducing transport costs, easing congestion at ports, and improving access to landlocked markets in central and eastern Africa.
Herman Kasekende, CEO of Standard Chartered Tanzania, said the railway would help position the country as a leading logistics centre in the region.
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“This project positions Tanzania as a premier logistics hub, boosting regional trade and job creation,” he said.
The project is being implemented by major international contractors, including Turkey’s Yapi Merkezi and China Civil Engineering Construction Corporation (CCECC), reflecting the scale of foreign involvement in East Africa’s infrastructure expansion.
The railway is expected to enhance the movement of goods such as agricultural products, industrial materials, cement, chemicals and pharmaceuticals, while also facilitating passenger travel across key economic corridors.
Officials say the SGR will play a critical role in integrating regional supply chains at a time when intra-African trade is expanding under frameworks such as the African Continental Free Trade Area (AfCFTA).
According to the United Nations Economic Commission for Africa, trade within the East African Community rose by 22 percent in 2024 to more than $11 billion, driven by growing industrial production and cross-border commerce.
The increase has been supported by rising demand for manufactured goods and the gradual development of regional value chains across sectors such as textiles, construction materials and food processing.
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Analysts say improved transport infrastructure is essential to sustaining this growth, particularly in reducing the high cost of moving goods across long distances and multiple borders.
The Tanzanian railway project is therefore seen as part of a broader continental effort to address long-standing logistics bottlenecks that have limited industrialisation and regional integration.
While financing has been secured, challenges remain around project execution, debt management and ensuring timely completion of the remaining sections.
Still, officials and financiers say the SGR represents a long-term investment in East Africa’s economic transformation, with the potential to reshape trade routes and strengthen connectivity across multiple countries.
