Dar es Salaam. In a landmark move to bolster regional trade and economic integration, the governments of Tanzania and Burundi have signed a $2.14 billion (approximately Sh5.6 trillion) agreement for the construction of a modern Standard Gauge Railway (SGR) linking Uvinza in Tanzania to Musongati in Burundi.
The 282-kilometre railway project, which is expected to significantly enhance cross-border trade and transportation, marks a critical step in strengthening economic ties between the two nations and fostering broader development across East Africa.
The agreement, signed in Dar es Salaam on Wednesday, January 29 underscores the commitment of both nations to improving infrastructure and facilitating the efficient movement of goods and people.
Speaking at the signing ceremony, Tanzania’s minister of Transport, Professor Makame Mbarawa, said the SGR project is a key component of a broader bilateral agreement aimed at connecting Burundi’s Musongati mining region to the Port of Dar es Salaam.
This connection is expected to streamline the export of minerals and other goods, reduce transportation costs and boost economic growth.
The railway will be constructed in two sections: the first, spanning 180 kilometres, will run from Uvinza to Malagarasi in Tanzania, while the second, covering 102 kilometres, will extend from Malagarasi to Musongati in Burundi.
The project will be undertaken by China Railways Engineering Group Limited and China Railway Engineering Consulting Group Co Ltd, both of which have extensive experience in railway construction in Tanzania, including their involvement in the historic Tazara railway project.
Economic and employment opportunities
The SGR project is already creating significant economic opportunities for local communities.
According to Professor Mbarawa, the ongoing construction of the SGR in Tanzania has directly employed over 30,000 people, earning them approximately Sh300 billion.
Additionally, local contractors have benefited from sub-contracts worth Sh3.7 trillion.
“We need to ensure value for money and adherence to international standards in this project,” Professor Mbarawa said.
He also urged the Tanzania Railways Corporation (TRC) to manage costs effectively to prevent budget overruns and to ensure that local communities along the railway route benefit from employment opportunities and corporate social responsibility (CSR) initiatives.
Funding and regional impact
Tanzania’s Minister of Finance, Dr Mwigulu Nchemba, confirmed that funding for the project has been secured, with the African Development Bank (AfDB) providing concessional financing.
This financing model is expected to reduce the overall cost of the project, making it more economically viable.
Dr Nchemba also revealed that plans are in the final stages to secure funding for Lot 3 and Lot 4 of the SGR, which will Makutupora with Tabora and then with Kigoma.
Burundi’s Minister of Infrastructure, Land and Housing, Dieudonné Dukundane praised the efforts of Tanzanian President, Samia Suluhu Hassan, and her Burundian counterpart, Évariste Ndayishimiye, in securing the necessary funding for the project.
He highlighted the transformative potential of the SGR in opening up trade opportunities and improving the livelihoods of citizens in both countries.
Environmental and strategic benefits
The SGR project is not only an economic game-changer but also an environmentally sustainable initiative.
Permanent Secretary of the Ministry of Transport, Prof Godius Kahyarara, noted that the electric SGR will significantly reduce carbon emissions, aligning with global efforts to combat climate change.
The railway is expected to cut emissions by 75 percent, with 15 percent of its electricity generated by the trains themselves.
This aligns with Tanzania’s commitment to reducing emissions by 2040.
He further noted that the project also underscores the importance of developing complementary port infrastructure in Tanzania to maximise the benefits of the SGR.
“Bagamoyo Port, with its potential to handle large-scale cargo, has been identified as a strategic option that could enhance the efficiency of the railway network,” he said.
