Standard Chartered Tanzania has signed a $1.46bn loan agreement with the Government of Tanzania Ministry of Finance to support the construction of the Standard Gauge Railway (SGR) project from Dar es Salaam to Makutupora.
Being developed by Tanzania Railways Corporation, the SGR project is touted to be as one of the biggest projects in the country connecting Dodoma to Dar es Salaam via Morogoro and Makutupora.
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As per the Tanzania Railways Corporation, the approximately 550km long project would address the congestion challenges and reduce freight service charges by 40%.
The railway project, which will have a hauling capacity of up to 10,000 tonnes of freight, will also help in enhancing regional trade by connecting Tanzania to Burundi, Rwanda and The Democratic Republic of Congo (DRC).
SCT said that the biggest component of the latest financing for the project is provided by the Export Credit Agency Covered Facility from the Export Credit Agencies of Denmark and Sweden.
Tanzania Minister of Finance and Planning Dr Philip Mpango said: “With the help of Standard Chartered and our partners, the project financing will further increase direct employment in Tanzania, and more importantly, enable our local communities the thrive as they will be able to gain access to wider social services such as food and housing.”
The project, which has already created more than 8,000 new jobs, covers 1,219km long main track.
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By GlobalDataStandard Chartered Tanzania served as the global co-ordinator for the financing facility for the rail project.
Standard Chartered Tanzania CEO Sanjay Rughani said: “As a leading international Bank for Africa, with over 100 years of being in Tanzania, the African continent remains a key corridor not only for Standard Chartered but also our global clients.
“We are delighted to have reached this milestone in Tanzania to fund the SGR project that will deliver massive benefits to Tanzania and support the government’s 2025 vision of making Tanzania an industrialised country.”
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The Tanzania Standard Gauge Railway project aims to address the congestion challenges. (Credit: Michael Gaida from Pixabay)
