The African Development Bank (AfDB) has signed a coordination agreement with Deutsche Bank and Société Générale to mobilise up to $1.2 billion for Tanzania’s standard gauge railway (SGR) project.
The agreement was formalised during the African Investment Forum’s 2024 Market Days in Rabat, Morocco, according to an official statement from the bank.
The funds will contribute to the construction of a 411-kilometre railway line connecting Tabora and Kigoma in western Tanzania.
This $2.3bn project aims to enhance the country’s infrastructure by linking the Port of Dar es Salaam on the Indian Ocean to the Port of Mwanza on Lake Victoria.
It will also provide a critical transport corridor to neighbouring countries, including Rwanda, Burundi, the Democratic Republic of Congo, and Uganda.
The coordination letter was signed by Max Ndiaye of the AfDB; Myriam Ouazzani, managing director for Africa at Deutsche Bank: and Randolph Fotso, head of development and structured export finance at Société Générale.
The financing strategy will be executed in two tranches.
The first tranche will involve Deutsche Bank and Société Générale, while the second tranche will be coordinated by the AfDB, with contributions expected from development finance institutions, export credit agencies, bilateral lenders, and multilateral development banks.
This initiative underscores Tanzania’s efforts to secure funding from international debt capital markets to improve its transport network, boost regional trade, and drive economic development in East Africa.
