Tanzania Highlights Economic Gains from $10 Billion Investment in Standard Gauge Railway
Alison Marsh
Nov 2, 2024
Tanzania outlines economic benefits after investing $10 billion in SGR
Tanzania has highlighted the economic advantages it has achieved from its $10 billion investment in the Standard Gauge Railway (SGR), which started operations in June. Built by the Tanzania Railways Corporation (TRC), this 2,561-kilometer modern rail network links Dar es Salaam to Mwanza, Kigoma, Katavi, and neighboring countries including Rwanda, Burundi, Uganda, and the DRC.
 Since June, the segment between Dar es Salaam and Dodoma has transported 645,421 passengers and generated Sh15.695 billion in revenue, according to Prof Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment.
Prof Mkumbo presented the proposed Development Plan for 2025/26, emphasizing that the SGR is reducing transport costs and times, attracting investment, and enhancing domestic and international trade. Tanzania aims to become a key logistics and transportation hub in East and Southern Africa.
The project has created over 30,000 direct jobs and more than 150,000 indirect jobs since construction began in 2017. Travel time between Dar es Salaam and Dodoma has been reduced from around ten hours by bus to three and a half hours by train, a shift Mkumbo described as a significant boost for both personal and commercial transport.
Powered by electricity, the SGR contributes to road safety and environmental sustainability. Additionally, it has driven demand for local materials like cement and steel, bolstering the manufacturing sector. Currently, 2,460 companies are contracted on the project, representing contracts worth Sh3.69 trillion.Â
The SGR also facilitates efficient cross-border cargo movement, supporting international trade. Since 2023, 519 investment projects have been established along the SGR route, attracting $4.59 billion in capital and creating over 115,000 jobs. Prof Mkumbo noted that the railway is not just a mode of transport but a gateway to stronger economic growth and Tanzania’s vision of becoming a regional logistics powerhouse.
