Tanzania's $10 Billion Railway Network Boosts Trade, Jobs, Economic Growth, Media Reports
© Photo X / @MikaChavala
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Railway transport is vital for long-distance freight in Tanzania, second only to road transport. The government is currently upgrading the country's rail network with a new Standard Gauge Railway (SGR).
Tanzania's $10 billion Standard Gauge Railway (SGR), launched in June, aims to enhance the economy by connecting Dar es Salaam to key cities like Mwanza and Kigoma, and linking to neighboring countries such as Rwanda, Burundi, Uganda, and the DRC. The railway spans over 2,500 kilometers.
"This project is set to boost business and attract investment by cutting transport times and costs, driving growth in domestic and international trade," Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, said during a November 1 presentation to Parliament of the proposed 2025/26 Development Plan.
According to the minister, the SGR project is transforming the country into a leading transport and logistics hub in East and Southern Africa. It created over 180,000 jobs, improved transportation, boosted local manufacturing, and attracted $4.59 billion in investment since 2023. This project is expected to create 115,566 more jobs and significantly enhance cross-border trade.
