The Tanzanian government recently inked a 231.3 billion Tanzanian shilling ($91.76 million) financing agreement with the African Development Bank (AfDB) on Friday to kickstart the construction of a modern railway infrastructure aimed at connecting Tanzania with its neighboring nations, Burundi and the Democratic Republic of Congo (DRC).
The initiative is a crucial component of the larger Standard Gauge Railway (SGR) network, which spans from the port of Dar es Salaam to facilitate connectivity through the central transportation corridor with neighboring countries.
The concessional loan agreement will support the construction of railway sections six and seven, linking the regions of Tabora to Kigoma and Uvinza to Malagarasi.
"The contract we have signed today, will strengthen rail transport and improve regional integration and commercial relations between our country and our neighbors in Burundi and the DRC," said Dr. Mwigulu Nchemba, Tanzania's Minister of Finance.
He outlined that the 567-kilometer railway construction is projected to span seven years, commencing from 2024 and scheduled for completion by 2031. The minister 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.
Acknowledging the transformative impact of the project, 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.
Furthermore, during the ceremony at the Ministry of Finance in Dar es Salaam, the AfDB extended an additional 166.4 billion Tanzanian shillings ($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.
"This financing is a loan to Tanzania, as an equity investment in TADB. This loan 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," Patricia Laverly, the AfDB country manager for Tanzania, highlighted.