The African Development Bank (AfDB) has signed an agreement with Deutsche Bank and Société Générale to establish a syndication strategy aimed at mobilising $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 $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.
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.
As Tanzania looks to international investors to realise this project, the Standard Gauge Railway has the potential to strengthen its transport network while fostering greater economic collaboration across borders.
