$696.41 Million Approved by African Development Bank (AfDB) for the Development of Phase 2 of Tanzania-Burundi-DRC SGR

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The African Development Bank (AfDB) has approved $696.41 million of funds to Tanzania and Burundi that will be used for the development of Phase 2 of Tanzania-Burundi-DRC SGR. The phase 2 of the SGR project will foresee the construction of 651 kilometers of a one-way electrified railway that shall link the Burundi to the existing railway network of Tanzania all the way to the Port of Dar es Salaam.

This SGR project has been divided into three parts namely: the Tabora-Kigoma railway which covers a distance of 411 kilometres, Uvinza-Malagarasi railway which covers a distance of 156 kilometers, and lastly Malagarasi-Musongati in Burundi which covers a total distance of 84 kilometers. This railway is set to connect Burundi directly to the port of Dar es Salaam which shall open up opportunities for the mining and agricultural sectors of Burundi.

Also read: Tanzania SGR to Kick Off Operations in January 2024

Tanzania-Burundi-DRC SGR Project Cost

The Tanzania-Burundi-DRC SGR project is expected to cost approximately $3.93 billion. The commitment of the AfDB is inclusive of $98.62 million of grants for Burundi and the loans and guarantees for Tanzania shall amount to a total of $597.79 million. The Bank shall be the Initial Mandate Lead Arranger (IMLA), collecting up to a total of $3.2 billion from the commercial banks, institutional investors, the Export Credit Agencies (ECAs), and also the Development Financial Institutions (DFIs).

This Tanzania-Burundi-DRC SGR project shall be very impactful in the region in that it will enable the access to a very efficient and cost-effective long-haul transport services to the people and businesses in the region. The large-scale mining especially nickel mining and commercial agriculture of Burundi will also greatly benefit from the project. In addition, the project will boost industrialization and also the diversification of the economy by linking crucial economic zones, population centres and industrial parks that are situated along the railway corridor.

This Tanzania-Burundi-DRC SGR project is in accordance with the several major development strategies which are inclusive of the East African Community (EAC) Rail Master Plan, the Infrastructure Development in Africa of the African Union (AU), and lastly the “High five” and “Integrate Africa” key priorities of the Bank. The SGR project is also in accordance with the Regional Integration Strategy Paper for East Africa and its Country Strategy papers for both Burundi and Tanzania of the Bank.