Dar es Salaam. The Deputy Minister for Finance, Mr Hamad Hassan Chande, has expressed gratitude to the government of China for its support through the China Export & Credit Insurance Corporation (SINOSURE) in underwriting a $559 million commercial loan for the construction of Lot 5 of the Standard Gauge Railway (SGR) between Isaka and Mwanza.
Mr Chande made the remarks during bilateral talks held on April 29, 2025 in Dar es Salaam at the Johari Rotana Hotel, between a Tanzanian delegation led by the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, and a Chinese delegation led by China’s Vice Minister of Commerce, Mr Tang Wenhong.
The loan agreement, which was signed on October 21, 2024, marks a significant milestone in the SGR project’s implementation.
The fifth section of the railway is part of the government’s wider efforts to enhance transportation infrastructure and improve regional connectivity.
During the meeting, Mr Chande also appealed to the Chinese government to consider SINOSURE’s participation in the financing of the sixth phase of the SGR, which will stretch from Tabora to Kigoma at an estimated cost of $2.3 billion.
“Funding for the Tabora–Kigoma segment is expected to come from various sources, including $1.1 billion from Development Finance Institutions (DFIs), with SINOSURE expected to be among the key guarantors,” Mr Chande said.
He further highlighted the impact of China-Tanzania cooperation, noting that the partnership had facilitated the mobilisation of $108.6 million for Phase I of the Rural Communication Expansion Project and $270.3 million for the first phase of the 400kV electricity transmission line from Dar es Salaam to Arusha.
Mr Chande added that the country’s economy continues to strengthen due to ongoing infrastructure investments, stable macroeconomic fundamentals, low inflation, and an improved investment climate.
For his part, Vice Minister Tang reaffirmed China’s commitment to deepening economic and diplomatic relations with Tanzania for the mutual benefit of citizens from both countries.
Mr Chande also led the Tanzanian delegation in receiving Mr Tang upon his arrival in the country on April 26 for a working visit expected to conclude on April 29. The visit will feature a series of bilateral engagements aimed at enhancing economic cooperation between the two nations.
The discussions underscore the importance of Sino-Tanzanian relations, which have remained a cornerstone of Tanzania’s development strategy, especially in infrastructure, energy, and telecommunications sectors.
