Tanzania has launched a Sh6.3 trillion ($2.4 billion) Standard Gauge Railway (SGR) project aimed at enhancing transport connectivity with the Democratic Republic of the Congo (DRC) and Burundi, in a move expected to boost regional trade and position the country as a key logistics hub for East and Central Africa.
The project is designed to improve the movement of passengers and freight, reduce transportation and logistics costs, and strengthen the role of the Port of Dar es Salaam as a strategic gateway for landlocked countries in the region.
Officials say the railway will also create thousands of jobs during construction and operation while attracting new investment in transport, logistics and related industries.
The new rail link forms part of Tanzania’s broader strategy to expand its modern railway network and improve regional connectivity under the East African integration agenda.
By providing faster and more efficient access to international markets, the railway is expected to facilitate cross-border trade between Tanzania, the DRC and Burundi, while supporting economic growth and industrial development across the region.
The project is also expected to reinforce Dar es Salaam’s position as one of Africa’s leading trade corridors by offering a more reliable and cost-effective transport route for cargo destined for East and Central Africa.
In 2024, the Tanzanian government signed a 231.3 billion Tanzanian shilling ($91.76 million) concessional financing agreement with the African Development Bank (AfDB) to support the construction of key railway sections linking Tabora to Kigoma and Uvinza to Malagarasi.
