• Standard Chartered arranges $2.33 billion for Tanzania railway project

• Funding supports key SGR sections linking Dar es Salaam to inland regions

• Project aims to boost regional trade, connectivity, and logistics efficiency

Standard Chartered said on Tuesday it had arranged more than $2.33 billion in syndicated financing to support construction of several sections of Tanzania’s Standard Gauge Railway (SGR).

The project features a 1,219-km main line linking Dar es Salaam to Mwanza. The funding will cover two sections being built by Turkey’s Yapi Merkezi and China Civil Engineering Construction Corporation (CCECC). The network is expected to extend to about 2,561 km, with links to Rwanda, Burundi and the Democratic Republic of Congo (DRC).

Backed by Multiple International Lenders

The deal draws on several funding sources. Around $1.32 billion comes from loans backed by export credit agencies in Sweden, Poland and Italy. It also includes $462 million in financing from commercial banks and development institutions since 2023, along with $559 million guaranteed by China’s Sinosure.

The latest financing builds on the $1.46 billion Standard Chartered arranged in 2020 for the project’s first two sections.

This railway project positions “Tanzania as a premier logistics hub, boosting regional trade and job creation,” said Herman Kasekende, CEO of Standard Chartered Tanzania.

The railway is designed to modernize Tanzania’s network and link the port of Dar es Salaam with inland regions and western economic corridors. It aims to facilitate the movement of goods and passengers while lowering logistics costs, and to strengthen links with neighboring countries, including Rwanda, Burundi and eastern DRC.

The project comes as trade activity accelerates in East Africa. According to the United Nations Economic Commission, trade within the East African Community (EAC) rose 22% in 2024 from a year earlier to more than $11 billion. The increase is driven by agricultural and industrial goods such as textiles, cement, chemicals and pharmaceuticals, as regional value chains develop and the African Continental Free Trade Area (AfCFTA) takes effect.

Sandrine Gaingne