The African Development Bank (AfDB) has signed a coordination agreement with Deutsche Bank and Société Générale to mobilize up to $1.2 billion for the construction of Tanzania’s Standard Gauge Railway (SGR).
This agreement was formalized during the African Investment Forum’s 2024 Market Days in Rabat, Morocco, as stated in an official AfDB release.
The funds will support the development of a 411-kilometre railway line connecting Tabora and Kigoma in western Tanzania.
The $2.3 billion project aims to strengthen the nation’s infrastructure by linking the Port of Dar es Salaam on the Indian Ocean to the Port of Mwanza on Lake Victoria.
It will also provide a key transport corridor to neighboring countries, including Rwanda, Burundi, the Democratic Republic of Congo, and Uganda.
The coordination letter was signed by Max Ndiaye of the AfDB, Myriam Ouazzani, managing director for Africa at Deutsche Bank, and Randolph Fotso, head of development and structured export finance at Société Générale.
The financing will be executed in two tranches. The first tranche will involve Deutsche Bank and Société Générale, while the second will be coordinated by the AfDB, with contributions from development finance institutions, export credit agencies, bilateral lenders, and multilateral development banks.
This initiative reflects Tanzania’s strategic efforts to secure funding from international debt capital markets to improve its transport network, enhance regional trade, and foster economic growth in East Africa.
