The Tanzanian government has finalized a landmark financing agreement with the African Development Bank (AfDB) to kickstart the construction of a state-of-the-art railway connecting Tanzania with its neighboring countries, Burundi and the Democratic Republic of Congo (DRC) as well as to increase the capital of the Tanzania Agricultural Development Bank (TADB), at the Treasury Small Hall, in Dar es Salaam, witnessed by the Minister of Transport, Hon. Prof. Makame Mbarawa (MP), Permanent Secretary of the Ministry of Finance, Dr. Natu El-maamry Mwamba, Commissioner of the Foreign Finance Department, Mr. Rished Bade, Director-General of Tanzania Railways Corporation (TRC), Mr. Masanja Kadogosa, Representative of the Tanzania Agricultural Development Bank, Mr. Emmanuely Lyimo, and other senior government officials.
Minister of Finance, Hon. Dr. Mwigulu Nchemba (MP), speaking at the signing ceremony with AFDB Group of two agreements worth approximately 158.1 million USD (equivalent to Tanzanian shillings, 398.7 billion) for the construction of the Modern Railway Project (SGR) that will connect Tanzania, Burundi, and the Democratic Republic of Congo (DRC), as well as
The financing agreement, totaling 231.3 billion TZS (91.76 million USD), was signed on Friday, February 23, 2024, marking a significant milestone in the development of the Standard Gauge Railway (SGR) project. This ambitious initiative aims to establish a robust transportation network linking the port of Dar es Salaam with key destinations across the region.
The funding will primarily support the construction of sections six and seven of the modern railway, spanning from Tabora to Kigoma and from Uvinza to Malagarasi. Spanning a total distance of 567 kilometers, the construction is expected to be completed within a seven-year timeframe, commencing in 2024 and concluding in 2031.
Dr. Mwigulu Nchemba, the Minister for Finance, emphasized the project's strategic importance during the signing ceremony. He highlighted the objective of establishing a modern railway corridor to facilitate trade and connectivity between Tanzania, Burundi, and the DRC.
"The goal of this project is to connect Tanzania with Burundi through a modern railway from Malagarasi to Musongati and in the future, connect with DRC from Malagarasi," stated Dr. Nchemba.
The initiative forms part of the larger "Multinational Tanzania/Burundi/DR Congo joint standard gauge railway project," aimed at fostering regional integration and enhancing commercial relations across borders.
Dr. Nchemba underscored the significance of the loan in enhancing access to agricultural credit, stimulating production, and strengthening food security across Tanzania. The funds will support initiatives such as the 'Building a Better Tomorrow (BBT)' program, aimed at empowering youth groups through access to financing for agricultural ventures.
Prof. Makame Mbarawa, the Minister for Transport, commended the AfDB for its support in developing critical infrastructure. He described the financing agreement as a pivotal moment for Tanzania, highlighting its role in fostering regional connectivity and economic growth.
In response to the agriculture financing agreement, Ms. Patricia Laverly, AfDB's country manager for Tanzania, emphasized the bank's commitment to supporting agricultural development and empowering women-led businesses. The funding aims to provide more affordable and structured financing options to farmers, with a focus on promoting gender equality and inclusion.
As Tanzania embarks on this transformative railway project and strengthens its agricultural financing mechanisms, the partnership with the AfDB underscores a shared commitment to sustainable development and regional prosperity.