Standard Chartered said it arranged a $2.33 billion syndicated loan to fund part of Tanzania’s Standard Gauge Railway (SGR), one of the country’s most ambitious infrastructure projects.
The funding will support the construction of two sections of the rail line linking Dar es Salaam, Tanzania’s main port and commercial hub, to Mwanza, a key city on Lake Victoria.
The full railway is planned to span about 1,219 kilometres.
The project is being executed by a consortium that includes Turkey’s Yapi Merkezi and China Civil Engineering Construction Corporation, reflecting the continued role of international contractors in Africa’s large-scale infrastructure buildout.
The financing package was raised from a mix of export credit agencies, development finance institutions, and commercial lenders, highlighting how governments are increasingly blending public and private capital to fund costly transport projects.
Once completed, the railway is expected to significantly improve the movement of goods and passengers between Tanzania’s coast and its inland regions.
It will also strengthen trade links with neighbouring landlocked countries including Rwanda, Burundi, Uganda, and the Democratic Republic of Congo.
The SGR is central to Tanzania’s long-term plan to build a 2,561-kilometre modern rail network that can compete with road transport and reduce logistics costs, a key barrier to trade across East Africa.
Across the continent, governments are investing heavily in rail as part of broader efforts to boost intra-African trade under the African Continental Free Trade Area (AfCFTA).
Efficient rail systems are seen as critical to easing congestion at ports, lowering freight costs, and improving access to global markets.
For Tanzania, the project also signals a strategic shift toward positioning Dar es Salaam as a regional trade gateway, competing with ports in Kenya and beyond.
Source: Africabusinessinsider