AfDB approves $696m loan for Tanzania-Burundi SGR

The African Development Bank (AfDB) has approved a $696.41 million loan for the construction of the second phase of the Tanzania-Burundi-DR Congo standard gauge railway (SGR) line.

Construction of the 651-kilometre line will be subdivided into three parts: Tabora-Kigoma (411km) and Uvinza-Malagarasi (156km) sections in Tanzania; and the Malagarasi-Musongati section (84km) in Burundi, AfDB said in a statement on Tuesday.

"This standard gauge railway project will be connected to the existing railway network of Tanzania, providing access to the port of Dar es Salaam."

In total, 400 kilometres of rail infrastructure has already been built in Tanzania from Dar es Salaam to Dodoma since the start of the first phase of the project.

'Unlock economic zones'

The rest of the section from Dodoma to Tabora is under construction.

The African Development Bank will provide $98.62 million to Burundi in the form of grants and $597.79 million to Tanzania in the form of loans and guarantees.

The total cost of the project – both in Tanzania and Burundi – is estimated at nearly $3.93 billion, the African lender says.

"The SGR railway network will unlock and connect key economic processing zones, industrial parks, Inland Container Depot (ICDs), and population centres along the central corridor. This will enhance accessibility and promote economic activities," AfDB said.