(3 Minutes Read)
The African Development Bank (AfDB) along with Deutsche Bank and Société Générale established a syndication strategy aimed at mobilising USD 1.2 billion for the expansion of Tanzania’s Standard Gauge Railway (SGR). The financing will support the construction of a 411-kilometre line between Tabora and Kigoma, a critical segment in Tanzania’s infrastructure network.
The agreement was concluded during the 2024 Africa Investment Forum Market Days in Rabat, Morocco, with the AfDB serving as the mandated lead global coordinator for the financing effort. Tanzania’s Ministry of Finance is seeking funds through international debt capital markets to advance this segment of the SGR project, which forms part of a larger USD 2.3 billion initiative.
The SGR is designed to connect the port of Dar es Salaam on the Indian Ocean with Mwanza on Lake Victoria. It is also expected to facilitate links to neighbouring countries, including Rwanda, Burundi, the Democratic Republic of the Congo, and Uganda. This cross-border reach is anticipated to strengthen trade routes and provide landlocked nations with improved access to global markets.
The railway project aims to create economic opportunities by enabling the transportation of mining and agricultural commodities across Eastern and Central Africa. By enhancing regional connectivity, it is expected to drive economic growth and improve logistical efficiency in Tanzania and the surrounding region.
Read Also:
https://trendsnafrica.com/usd-92-mn-afdb-funding-for-railway-linking-project-in-tanzania/
The syndication strategy, developed in collaboration with Deutsche Bank and Société Générale, represents a structured approach to securing the necessary funding. It highlights the growing involvement of international lenders in financing African infrastructure projects, reflecting confidence in Tanzania’s development plans.
