Posted on :Monday , 10th February 2025

Tanzania and Burundi have signed a contract with two Chinese companies to construct a railroad to transport metals, notably nickel, to Tanzania's port city of Dar es Salaam.

China Railway Engineering Group and China Railway Engineering Design and Consulting Group are going to develop the $2.15 billion project, with financing from the African Development Bank (AfDB).

This proposed 282km (175-mile) standard gauge railway (SGR) plans to move three million metric tonnes of minerals per year, with a particular focus on increasing trade between Tanzania and Burundi.

The project is scheduled to be wrapped up in 72 months, which includes a 12-month reviewing period. It is part of the region's infrastructure development, which will connect vital regions and improve transit of mining and agricultural goods throughout Eastern and Central Africa.

According to Bloomberg, Tanzania's Transport Minister Makame Mbarawa stated that the signing of this deal represents the culmination of a bilateral agreement between the Tanzanian and Burundian governments.

The project will consist of a single electrified standard gauge track divided into three sections: Tabora-Kigoma (411 km) and Uvinza-Malagarasi (156 km) in Tanzania, and Malagarasi-Musongati (84 km) in Burundi.

Recently, AfDB signed a cooperation agreement with Deutsche Bank and Societe Generale to design a syndication plan that will generate up to $1.2 billion for Tanzania's SGR project.

Tanzania completed the first test run of the SGR train, which links the large port city of Dar es Salaam to the capital, Dodoma, last year. Prime Minister Kassim Majaliwa presided over the train's debut trip.