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The Tanzanian government recently signed a USD 91.76 million financing agreement with the African Development Bank (AfDB) to kickstart the construction of a modern railway infrastructure aimed at connecting Tanzania with its neighbouring nations, Burundi and the Democratic Republic of Congo (DRC).
The Tanzanian government recently signed a USD 91.76 million financing agreement with the African Development Bank (AfDB) to kickstart the construction of a modern railway infrastructure aimed at connecting Tanzania with its neighbouring nations, Burundi and the Democratic Republic of Congo (DRC). The Standard Gauge Railway (SGR) network, which spans from the Dar es Salam port facilitates connectivity through the central transportation corridor with neighbouring countries.
The 567-kilometer railway construction is projected to span seven years, commencing in 2024 and scheduled for completion by 2031. Dr. Mwigulu Nchemba, Tanzania’s Minister of Finance emphasized the project’s primary objective of establishing a modern railway link from Malagarasi to Musongati to Burundi and subsequently to the DRC in the future. Dr. Nchemba highlighted the business prospects in neighboring Burundi, notably the significant nickel reserves estimated at around 250 million tonnes, underscoring the need for improved transportation infrastructure to unlock the economic potential for both nations.
During the contract signing ceremony at the Ministry of Finance in Dar es Salaam, the AfDB extended an additional USD 66 million to the Tanzania Agricultural Development Bank (TADB) to bolster its capital base. The financing boost aims to facilitate increased access to agricultural loans, stimulate production, and enhance food security within Tanzania.
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This additional USD 66 million is an equity investment in TADB that will support the entire agricultural value chain, with a special focus on women-led businesses, by providing lending services at more affordable rates and extended tenors.
