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    1.0.32

    Tanzania, Burundi Sign US$2.2 bn SGR Deal with Chinese Firms

    Zainab
    By Zainab Hafsah
    - January 30, 2025
    - January 30, 2025
    African Wall StreetInfrastructureTanzania
    Tanzania, Burundi Sign US$2.2 bn SGR Deal with Chinese Firms

    The Tanzania Railways Corporation has signed a US$2.154 billion agreement to construct a 282 kilometre standard gauge railway (SGR) from Uvinza to Musongati.

    • •The contract was jointly signed by the governments of Tanzania and Burundi with a consortium of Chinese companies and will be funded by a concessional loan from the African Development Bank.
    • •The project, which is expected to be completed within 6 years, will link the port of Dar es Salaam to a nickel mine in Burundi.
    • •China Railway Engineering, China Railway Engineering Design and Consulting Group Co in Dar es Salaam were awarded the contracts by the Tanzania Railways Corp.

    “The improvement of services at the Port of Dar es Salaam and the construction of the modern railway will further strengthen investment, not only in Tanzania and Burundi but across the entire region. These countries have reached a level of trust, demonstrating that when African nations support each other, they can achieve great progress,” Burundi’s minister of Infrastructure, Dieudonne Dukundane said.

    This marks the continuation of phase 2 of the SGR project following the signing of the Tabora-Kigoma segment in December 2022, currently under construction.

    Tanzania’s Transport minister, Prof Makame, said the project is in line with the African Union’s 2026 Agenda to connect African countries via modern railways.

    On 28th January 2022, Tanzania and Burundi signed a cooperation agreement for the construction of the railway between Uvinza and Musongati. The Tanzania Railway Corporation was assigned to procure the contractor and oversee the project on behalf of both countries.

    “I have seen how they started the SGR in Kenya, and I saw how you started the SGR in Tanzania. All of that was a lesson for Burundi. And I can assure you that the example I saw in Tanzania is one to be followed by the entire African continent,” Dukundane added.

    The East African Community is looking to develop a 6,220-kilometer SGR line to connect its eight member states. This resolution was announced during the ministerial session of the 19th EAC Sectoral Council on Transport, Communications, and Meteorology, convened in Arusha. 

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