Tanzania and Burundi have sealed a $2.2 billion agreement with two Chinese companies to construct a Standard Gauge Railway (SGR) line connecting the two East African nations. The deal, signed in Dar es Salaam, involves China Civil Engineering Construction Corporation (CCECC) and China Railway Construction Company Limited (CRCC).
The 282-kilometer railway will link Tanzania’s Isaka region to Burundi’s capital, Gitega, and is expected to significantly enhance trade and transportation between the two countries. The project is part of Tanzania’s broader SGR network, which aims to connect the country’s ports to landlocked neighbors like Rwanda, Uganda, and the Democratic Republic of Congo.
Tanzania’s Minister for Works and Transport, Makame Mbarawa, emphasized that the project will boost economic growth by reducing cargo transportation costs and improving regional connectivity. The SGR line is also expected to create thousands of jobs during and after construction.
The financing model for the project includes a mix of government funding and loans from international financial institutions. The Chinese firms will handle the construction, leveraging their expertise in large-scale infrastructure projects across Africa.
This agreement marks a significant step in Tanzania’s efforts to position itself as a regional trade hub, while Burundi stands to benefit from improved access to Tanzania’s ports, particularly the Dar es Salaam Port.