Posted on :Monday , 2nd December 2024

Tanzania's segment of the Standard Gauge Railway is taking shape, and when completed, it will serve as Africa's longest railway line. Tanzania's government has underlined the revolutionary economic benefits that the expanding railway has brought to the country thus far. Tanzania's SGR commenced operating in June and amounts to a $10 billion project.

The Tanzania Railway Corporation (TRC) is constructing a cutting-edge rail infrastructure spanning 2,561 kilometers. In addition, it will likely link the country by offering efficient transportation. These include territories that connect Dar es Salaam's port to Mwanza, Kigoma, and Katavi. It will also connect to neighboring Rwanda, Burundi, Uganda, and the Democratic Republic of the Congo. The project's potential and significance can already be seen in the stretch of rail that has become operational. The SGR has also increased need for regional construction materials. Steel and cement are among these, which stimulate the manufacturing sector.

Tanzania's SGR has already proven to be of unparalleled importance, despite only a portion of it being completed. Prof. Kitila Mkumbo, Minister for Planning and Investment, feels that rail services along the line are proving to be worthwhile. He stated that the railway line connecting Dodoma and Dar es Salaam has conveyed 645,421 passengers. It also generated about $5 billion by the end of September, a remarkable achievement. "This project aims to increase company revenue and entice investment by reducing transportation times and costs”. 

Tanzania's SGR is a task that President Samia Suluhu's administration has worked hard to ensure is successfully finished. At present, 2,460 companies are collaborating on the project with contracts worth sh3.69 trillion. The nation also intends to construct the rail to allow for smooth cross-border goods transit. 

Since 2023, over 519 investment proposals have been recorded along the SGR corridor. The Tanzania Investment Centre has received $4.59 billion in capital. Tanzania claims that the railway project is more than just a transportation system; it is a bridge to higher economic growth. Professor Mkumbo also emphasized the government's desire to transform Tanzania into a globally recognized logistics hub.