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Tanzania and Burundi just signed a deal to construct Sh5.38 trillion modern railway

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Magara Bosco

Jan 30, 2025

Tanzania and Burundi sign a deal for a Sh5.38 trillion railway to boost trade, electricity, mining, and telecom, linking key regional ports and markets

An agreement to begin the construction of a modern railway linking Uvinza and Musongati

Tanzania and Burundi have signed an agreement to begin the construction of a modern railway linking Uvinza and Musongati. The project, worth Sh5.38 trillion, is expected to take six years to complete and is anticipated to boost key economic sectors such as electricity, mining, telecommunications, and trade between the two nations.


According to Tanzania’s Ministry of Transport, a Chinese company, CREGC & CREDC, has been awarded the contract, with work set to start in two weeks. Speaking at the contract signing event, Permanent Secretary Prof. Godius Kahyarara mentioned that multiple countries have shown interest in joining the railway network.


“Burundi has joined, DRC has joined, and the railway is a great opportunity because it boosts the business of the Tanzania Railways Corporation (TRC). This modern railway is more than just for transporting cargo and passengers; it can also transmit electricity. Some 300 megawatts is no small matter, but TRC can handle it,” he said.

The railway will also provide internet services to landlocked countries, as major railway operators worldwide generate revenue from telecommunications. “Through this train, landlocked countries will be provided with internet services,” he added.


Tanzania is constructing a total of 2,561 kilometers of standard gauge railway (SGR) to link the Dar es Salaam port on the Indian Ocean to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika. This railway will extend to Burundi, the Democratic Republic of Congo (DRC), and Rwanda, as these countries heavily depend on the Tanzanian port for imports and exports.


TRC Director General Masanja Kadogosa explained that the construction will be executed in two phases: Uvinza to Malagarasi and Malagarasi to Musongati. “Some 240 km are for the main line and 42 km are for passing,” he said.


Burundi’s Minister for Infrastructure, Public Works, and Social Housing, Mr. Dieudonné Dukundane, praised the agreement, calling it a significant step in strengthening trade between the two nations.

“The improvement of services at the Port of Dar es Salaam and the construction of the modern railway will further strengthen investment, not only in Tanzania and Burundi but across the entire region. These countries have reached a level of trust, demonstrating that when African nations support each other, they can achieve great progress,” he stated.

“I have seen how they started the SGR in Kenya, and I see how it is being done in Tanzania. SGR is a major project, and this is one to be followed by the entire African continent,” Mr. Dukundane added.

Prof. Kahyarara also highlighted the railway’s potential in transporting nickel minerals from Musongati. Meanwhile, Tanzania’s Minister for Works, Prof. Makame Mbarawa, instructed TRC to maintain international safety standards and manage the project’s finances responsibly.

“TRC, ensure that you adhere to international safety standards in the project implementation and that the financial management of the project does not include unnecessary costs. Eligible citizens should be compensated,” he advised.

Speaking on behalf of the African Development Bank, Chief Transport Engineer Mr. Mumina Wa-Kyendo described the railway as one of Africa’s largest transport sector investments.


“The project brought a total investment of the transport sector in Tanzania to $5 billion and that is 70 percent of all investment of the Bank in Tanzania. So, transport is leading by far and by large and this is the demonstration of the commitment of the government of Tanzania to not only infrastructure but also the transport sector,” he explained.


The Chinese contractors, CREGC & CREDC, assured their commitment to collaborating with all stakeholders to ensure efficient communication and coordination throughout the project.

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