Tanzania and Burundi have entered into an agreement with two Chinese companies to construct a railway line to transport metals, including nickel, to the port city of Dar es Salaam in Tanzania.
The $2.15bn project will be developed by China Railway Engineering Group and China Railway Engineering Design and Consulting Group, with financing support from the African Development Bank (AfDB).
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This new 282km (175-mile) standard gauge railway (SGR) aims to transport three million metric tonnes of minerals annually with a primary focus on bolstering trade between Tanzania and Burundi.
The project is expected to be completed in 72 months including a 12-month review period. It is part of infrastructure developments in the region that will connect key locations and enhance the transportation of mining and agricultural products across Eastern and Central Africa.
Tanzania’s Transport Minister Makame Mbarawa was quoted by Bloomberg as saying: “The signing of this contract is the coming into fruition of a bilateral agreement between the governments of Tanzania and Burundi.”
The project will feature a single electrified standard gauge track divided into three sections: Tabora–Kigoma (411km) and Uvinza–Malagarasi (156km) in Tanzania, and Malagarasi–Musongati (84km) in Burundi.
In December 2024, AfDB entered into a coordination agreement with Deutsche Bank and Societe Generale to develop a syndication strategy to mobilise up to $1.2bn for the SGR project in Tanzania.
The agreement was signed at the 2024 African Investment Forum in Rabat, Morocco.
Last year, Tanzania completed the first test run of a train on its SGR, connecting the major port city of Dar es Salaam to the capital, Dodoma. Prime Minister Kassim Majaliwa officiated the train’s inaugural journey.
