NAIROBI, Kenya- Standard Chartered has arranged a $2.33 billion financing package for Tanzania’s flagship Standard Gauge Railway (SGR) project, marking a major boost for infrastructure development in East Africa.
The syndicated financing facility will support the construction of two key sections of the railway line connecting the commercial capital and port city of Dar es Salaam to the lakeside city of Mwanza, according to project details released this week.
Strategic Infrastructure Investment
The SGR project, spanning approximately 1,219 kilometres, is one of Tanzania’s most ambitious transport investments aimed at modernising its rail network and boosting regional trade.
Funding for the project has been sourced from a mix of export credit agencies, commercial banks and development finance institutions, highlighting strong international backing.
Construction of the railway sections will be undertaken by Turkey’s Yapi Merkezi and China Civil Engineering Construction Corporation, two firms already involved in major infrastructure projects across Africa.
Boost for Regional Connectivity
Once completed, the railway is expected to significantly improve the movement of goods and passengers, linking Tanzania’s main port to inland regions and neighbouring countries including Rwanda, Burundi, Uganda and the Democratic Republic of Congo.
Officials say the project will strengthen Tanzania’s position as a regional logistics hub while reducing transport costs and travel time.
“The construction and modernisation of the Standard Gauge Railway will connect the port of Dar es Salaam to key growth corridors in western Tanzania and neighbouring states,” the bank said in a statement.
Economic Impact
The railway is expected to spur economic growth by opening up inland regions, improving trade routes and creating employment opportunities.
Tanzania is targeting a broader railway network of more than 2,500 kilometres, designed to integrate the country more closely with regional markets and support long-term economic transformation.
The latest financing underscores growing investor confidence in East Africa’s infrastructure potential, even as governments seek to close funding gaps for large-scale projects.
With construction advancing on multiple sections, the SGR is seen as a cornerstone of Tanzania’s development agenda, one that could reshape trade and transport across the region for decades to come.
